The talent that must be taken care of and trained also refers to those who manage the orientation of the business model, the commercial and public relations group, the legal support that guarantees clarity and tranquility in the rights of audiovisual material.
Juan Pablo Morales*
We are currently living through one of the most momentous moments for the communications industry and the television sector. On the other hand, one of the greatest challenges is to be able to address an analysis and proposals of business models in times of re-evolution, when the continuous changes and reorientations of the industry carry a speed that can hardly be followed clearly.
A transversal concept in every revolution throughout history is that of substitution. In the case of the audiovisual industry, there are three areas where this concept has changed dramatically. The first is the substitutions in the production chain, evidencing transformations in the bases of financing, production, distribution, exhibition and in audiences and in their form and consumption habits as I have shared in previous articles. Substitution in the structure of the system, where there are now more players, different business models and new media; and finally substitutions in the technique or more precisely in the way of producing and the barriers to entry and Capex of the sector.
These substitutionary processes have had a highly correlated impact on culture, the way we view content, and the way society relates to ecosystems, media, and messaging.
The rapid evolution of the music industry paid off the floor, and a few years after Napster, the improvement in bandwidths, codecs, processing capabilities and protocols would start a special crop of content. In recent years the industry has also been accelerated by the change in consumption, thanks to the arrival of mobile devices, changing a habit of family video consumption to individual and private consumption.
OTT's business model has taken advantage of this evolution. After Netflix, Hulu and Amazon, other initiatives of traditional channels such as HBO, ESPN and other networks began to appear betting on a part of the market and adding more than 100 million paid subscribers among the most important worldwide by the end of 2015.
The same advertisers that support the business are facing a landscape of publishers and channels so wide that they have had to rethink their way of reaching the consumer, with a market that is fragmented into multiple services and devices and that has been continuously micro-segmented on account of the enormous offer of content.
The advertising industry began to evolve towards an intelligent and automatic model based on auctions that allows it to reach these segments according to users' own profiles, thanks to technology and audience data collected by online platforms, cookies and social networks. Programmatic advertising is the answer that is beginning to make its way to television as well. A solution that gives audiences the message they're looking for, in real time, in their own context and device, and right when they're in the process of converting.
Television as the first screen has continuously given way to other platforms. The numbers reflect a continued loss of pay-TV users almost everywhere in the world, or at least slowed growth as we've seen in Colombia. Against this backdrop, in a system with dramatic changes on all fronts, it is essential to have a plan to achieve long-term success in the industry.
Many great things can be achieved without a plan, but having it, resources are deployed organically, opportunities are awakened naturally, and a sequence of successes is built harmoniously and exponentially. This is why it is important to consider the following 8 tips for an audiovisual content business model.
1. Identify each segment
Let's remember that television is now more personal than ever. We went from an impersonal, informative TV, where the individual did not exist, to a reality TV that exhibits intimacy and by being individualized, takes the audience to the scene and the viewer identifies with what he is, with what he wants or with what he does not want to be.
The following questions must be answered:
Who am I going to direct the content to?, What are the characteristics of that niche?, Is it massive, corporate?, Do you seek to communicate, teach, entertain or sell? and How to measure success?
The contents of brands will carry a special stamp with stories to tell, entertain, engage and interact, establishing an emotional dialogue with each user, offering as a value the possibility of being staged and even guiding the development of the content.
2. Value Proposition
It's not just about views, likes and subscribers. The content must be constructive and easy to deliver and access. The easier it will be for the user to understand, the more related and therefore the more likely it is to be shared.
3. Create, maintain and strengthen relationships with the audience
Relationships with the audience are structured with presence. Currently, organic Internet traffic has evolved to such an extent that Google changes its algorithm more than 50 times a year. For this reason it is essential to apply online marketing techniques, SEO and SEM to the content and use social networks to convey that identity motivating the conversation.
4. Promote a massive collaborative construction
Culture should lead us to internalize the need to use multiple devices, media, languages and messages. The more transmedia a message is, the greater its deployment and strength. The user experience must be the focus of all efforts and for this we must take care of the coherence with the narrative, the staging, planimetry, the languages, scripts and the rhythm of each production.
The message will be more shared to the extent that the mix of channels through which the user is approached is appropriate.
5. Talent is the key
It is important to clarify that with talent I do not want to refer only to the artistic team in a production. The talent that must be cared for and trained also refers to those who manage the orientation of the business model, the commercial and public relations group, the legal support that guarantees clarity and tranquility in the rights of the audiovisual material. Before investing in cameras and studios, talent is more important.
6. You have to know what's going on in the industry
The best way to be updated on the movements of the sector is through continuous research. It is advisable to attend television and digital content fairs to permanently strengthen a public relations circle. You have to watch TV and surf the internet and know where the raitings and views are. Only in this way can commercial and entertaining content be developed, developing your own formats. Experiment, design and redesign.
7. Focus on Monetizing
There are many alternatives to monetize content. If we think from an advertising perspective, we find options such as Branded Content, Product Placement and sponsorships. Funding can be found to develop projects also through calls, commissioned productions, co-productions and taking advantage of development laws such as those existing in Colombia (814 or 1556). You can also have benefits through the sale of rights to different windows, sale of content with Pay Per View (PPV), creation of channels on YouTube and subscription to Multi Channel Networks (MCN) and others little explored in Latin America such as licensing, consumer products and crowdfunding.
8. Public Relations.
Audiovisual content, as well as most services and products are sold based on the emotions of the client and not so much on reason and practical information.
The emotional has a greater specific weight when we talk about entertainment and advertising, which is why human relationships are the center in this industry. For this reason it is very important to work on a public relations plan with television channels, public and private, cable or open television and with those who also set the tone in the digital world.
Many guilds and public or mixed institutions with promotion programs have a very special value. We must approach the Ministries of Culture, Education and ICT, Chambers of Commerce and Universities, as well as the events of the sector and the people of the organizations that promote and sponsor them.
With these tips the only thing missing is to make the decision and start experimenting.
*Juan Pablo Morales Sarmiento is Provideo's Vice President of Distribution. You can contact him through @JuanPMoralesS
