The Future Kings of ContentWith the near-release of Apple's new Tablet, along with a (rumored) subscription based model/service for publishers and content providers, giants like the Food Network have one of the biggest opportunities out there. Depending on which cable network you ask, the Food Network contributes to nearly 40% of the cable TV unit's revenue annually. Meaning, they are one of the most highly valued networks among cable providers and viewers.
We know that content is king. But do we all really know what that means? In this case more content means more hours of engagement for their viewers. More joy.
So how can content via digital distribution help giants like: ESPN, Bravo, and the Food Network compete in the next decade? Well, it won't be the show formats or the new hosts, instead the opportunity is in how they serve up their content. The way they: organize (interface + interact), distribute (access points + devices) and monetize their content.
More and more entertainment devices are coming into the digital marketplace from companies like
Apple,
Microsoft, and
Amazon. And as a result, major content providers such as Harper Collins, CNN, The New York Times, ESPN, and the Food Network have some monster opportunities going into the next decade—starting right now.
Let's take a quick look at the Food Network. Essentially, they have the opportunity to create an entire search engine of cooking content that spans thousands if not millions of hours of recipes and videos—that's a million hours of cooking joy, and more content than any one person can consume in a lifetime. In the previous decade, the internet offered new opportunities for networks (like the Food Network) to redistribute their content and drive online revenue through banner ads and pre-roll commercials.
However, at the end of the decade (and moving into the next) TiVos and the App Store boom have started to prove that consumers want their content when they want it. And even more, I think that avid viewers can become avid subscribers to content. Yes, I do think that your biggest fans are willing to pay a small premium to get JUST the content they want. And with the success of the app store model, it's proving that consumers are becoming more and more inclined to do so.
The risk for content publishers is primarily based on these key factors:
1. Is your consumer (really) dedicated to your brand or content?
2. Can you create a valued, personal experience that takes advantage of the new portable
"Entertainment Devices" available on the market today?
I think the opportunity can be immediately simple—provide dedicated viewers with an even easier, more direct way to access all of your content. The reciprocal effect will allow you to "touch" your customers and create a better experience with even more value. Another way giants like The Food Network can succeed is (hold your breath) by offering their entire content library as a subscription-based service—a relationship-based service. Can you imagine being able to distribute and monetize your content without a heavy dependency on advertising? Just imagine this for a few seconds...
So how is your network, brand, or publication going to take advantage of this new media?
By understanding where the consumer mindset is shifting and anticipating change, we have the opportunity to guide or even direct change. And as new devices come onto the market everyday, they empower marketers with a huge opportunity to offer better experiences that are directly customized to the consumer. Content and a service that if offered correctly, can be worth something.