Television has changed from the three-channel dial on a black-and-white television to the instantly accessible online TV, where consumers can stream any movie, any TV series, any documentary — you-name-it — to any electronic device in a matter of seconds. The success of companies in online TV, such as Netflix, is teaching other companies how important this medium is to the world. Online advertising is growing and has provided a new platform for companies to create awareness and buzz about their brands.
Netflix prevails
Online TV services, such as Netflix, Hulu, YouTube and Amazon, have made some of the biggest impacts to television and advertising — changing the industry forever. Netflix has more than 27 million domestic online customers for both online television and DVDs by mail, giving cable a run for its money. This year, Netflix earned 14 Emmy nominations, showcasing the popularity of instant media. With a $3.7 billion budget, House of Cards — Netflix’s original series — earned 9 Emmy nominations. After bringing back Arrested Development to exclusively online, the show earned them 3 more nominations, while the horror series Hemlock Grove was nominated twice.
Media conversation changing television
Social media has driven awareness and discovery of some of the nation’s top shows.When the conversation about online TV sparks interest to social users, Netflix sees that more people will be compelled to sign up for service and join in the conversation. Now that companies have witnessed the success of online television, many are inspired to produce their own shows. Amazon.com, a newcomer to online TV, created several new online television series — bringing the company into this new medium of business.
Cable vs. online TV
According to The Washington Post, “Cable channels had their own breakthrough [at the Emmy’s] in 1999, when HBO’s The Sopranos became the first series not carried on broadcast television to be nominated for best drama.” With online TV making a similar breakthrough, what does the future of cable look like? With football season around the corner — and all live sports games for that matter — this will compel Americans to keep their cable provider. In addition to sports, local news coverage will keep cable television a staple in most American homes. But then again, who wouldn’t love to just watch the entire season of their favorite TV show with a click of a button? No waiting. No commercials.
And what about the advertisers?
With no commercials entering this online TV phenomenon, advertisers will need to find new ways to target their market demographic. Focus will need to be on nontraditional advertising, creative ideas on how to become part of the program without ruining the consumer experience. Companies and brands need to become relevant on all electronic devices. While TV is a $60 billion market and remains the largest single area of ad spending, the online TV market continues to grow, and consumers will have more choices when it comes to cable or online TV. Which is the best subscription? Am I getting all that I paid for? From exclusive online TV series to the decline of advertising, what will come next?
*Stephanie Putnam is the Social Media Intern at Moxie. If she’s not cooking up new dishes in the kitchen, you will probably find her pinning home décor and DIY projects on Pinterest. Follow her at @StephPutnam1.
via Online TV Makes History for Entertainment & Marketers | Moxie Blog.
