While cable services may be on life support, the simple truth is that live TV captivates audiences in ways on-demand content can’t. Maybe it was the anticipation that came with watching Roy Halladay fan 11 Marlins hitters in a perfect game for the Phillies back in 2010, or the anxiousness that occurs watching state-by-state election results roll in on a Tuesday night in November. The bigger point is that while on-demand content has become a big part of our daily viewing habits, live television and the revenue companies generate from those audiences is undergoing a renaissance.
“In order to do business, in order to have the things we need, we need to generate revenue somehow. So the payment for what happens, and the ability to create content, pay artists, funding great content has to come from somewhere. Either people have to pay for it through subscriptions directly, which is the SVOD space, that’s Disney+, Netflix, and the HBO Max, or they have to be willing to accept advertising because the advertisers are paying for the value there. These are the tensions in the trade-offs.”
Those tensions are creating an interesting dichotomy between traditional cable viewers and the trendiness that comes with being a cord cutter. But it's also generating an even larger divide in how media companies distribute their advertising dollars. On this episode of Marketing Trends, Mike Woods, the SVP of Product for Amagi Corporation, joined me on Marketing Trends to discuss how media companies are approaching their ad buys when it comes to live streaming services, and why SVOD services such as Netflix and Disney+ are bucking traditional advertising with subscription based models. Enjoy this episode!
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