Ryan MacMillan

A feature in The Times on Sunday wants to know: Is television over? They point to the “television experience” that has fundementally changed since the TV boom in the 1980s. TiVo and other video on demand services – be they big networks like Hulu or niche vlogs – mean that audiences are no longer leaving their “viewing to chance or to programmers any more.” I am not sure if I agree with this entirely – I think while viewers are enjoying this new world we live in where consumer choice matters to the corporations, they do also like to leave some of the heavy lifting to the big guys. There’s a sense of comfort in knowing that flipping on Fox or ABC during prime time will promise something entertaining. Either way, though, there is an interesting divide cropping up between the business of distributing content (broadcast) and creating it.

I tend to separate online video content into three categories:

1) Network TV merely broadcast online (like Hulu)
2) YouTube-esque clips of ordinary people uploading whatever they feel like
3) Original online video content, like The Onion’s fake news show or blogger’s own video commentary.

But who’s making the money off these ventures?

1) The big-network distributors who are looking to alternate means for ad revenue.
2) The online distribution giants like YouTube and Veoh who are getting ad revenue/sponsorships for hosting videos – it sure as heck isn’t the person who uploaded the funny video with 500,000 views.
3) The content creators are making the profits off their original video content since they are attracting a niche audience. Even if they distribute their own videos, they aren’t really worried about finding the audience – the right audience finds them because their creation is relevant.

So, perhaps I should rephrase The Times’ question: is the television model of both creating and distributing content as one business over? I would not say it is over, but it is certainly changing. And both the creators and distributors have to change and adapt in different ways as a result.

Referring to our KUDOS model, the distribution and creation sides of the business are both Knowledgeable in two distinctly different ways .

The distributors need to know their audiences, so they can provide them with relevant content.

The creators need to know what constitutes great content so it will attract and enthrall audiences.

Distributors and creators have related interests and goals, but a separation of their tasks and challenges helps to clarify what it’ll take for them to adapt and be successful. The game is still the same, but the rules have changed:

Network television has had to face the reality that consumers don’t need proramming to fulfill their entertainment needs, and may choose to fill their time with other media activities instead. Online video websites mean a creator doesn’t need a big distributor to broadcast their content since the barriers to entry have dwindled. But both parties can still benefit from working together, delivering great content that really hits the spot and therefore attracts the advertising dollars.