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Tracking The Entertainment Industry Is Extremely Complicated

Believe it or not, there was a time when the entertainment industry was rather predictable. The 20th century was a golden era for television and advertising. Fast forward it to the present and you see a very fractured audience, as well as an industry that has become extremely complicated. It’s not just about broadcast, or cable, or satellite dish.

Streaming TV has created a whole new paradigm. The internet itself has offered new possibilities that were not available a few years ago. This contingency has made the game more intricate for analysis.

The Nielson reports have always been the standard, but a variety of new entertainment avenues seem to have muddied the waters.

On March 2, 2014, Nielson admitted in a statement that it had “uncovered a technical error that impacts national network television ratings over several months.” The ‘software fix’ to correct the issue was implemented on Oct. 9, 2014. Some national broadcast networks were misrepresented and the changes corrected the problem.

Not only have the mechanisms changed, the viewing habits are more scattered than ever. Social media has entered the arena, with our friends sharing what they watched the night before. There are layers of matter to wade through.

Audience fragmentation has increased because of these new mechanisms—DVD players, smart TV’s, smart phones, tablets, laptops, streaming media players, streaming media dongles, etc. The list continues to grow exponentially.

The factor that must be incorporated into ratings is content via video on demand, especially with mobile devices. Technological innovations bring forth different methods of offering content.

In mid-November, Nielson confirmed that a kit was going to enable a different way of measuring new types of media.

Advertising has to change, along with new types of media. Native content is the buzz and consumers are a bit puzzled by it, at least 66% of the crowd.

Digital providers have trouble with labeling, transparency, and methods of deployment. Branding is very important, but it’s difficult to master, due to a more sophisticated audience. Social media has made consumers smarter.

If the advertisement is too obvious, it may be construed as annoying. If not so obvious, the message could get lost. Monetization can be a problem.

And if the mass confusion and hysteria wasn’t enough, the concentration of media ownership is more troubling for consumers. Studies have verified that deregulation and consolidation have produced less content than before. Fewer voices in the local audiences are being heard, thus creating a disconnect with viewers.

Media cross-ownership is intense. Not long ago, AT&T acquired DirecTV for about $48.5 billion.

Before this, Comcast agreed to buy Time Warner Cable for $45 billion.

Both deals are mind boggling if you stop and think about it.

You’re not just dealing with TV anymore. You’re dealing with gigantic infrastructures which include TV stations, cable, satellite dish, broadband, wireless networks, internet companies, and much more.

Who could buy Netflix?

One Response

  1. Television Is Going To Be The Internet On Your Wristwatch | The Cyber Daily

    [...] is going to be the internet, maybe on your wristwatch or at least on the cell phone. Tracking the entertainment industry is extremely complicated, but there are clues that explain the direction that it’s heading. [...]

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