Futuresource conducted a study to analyze the changes the entertainment industry has endured during the Covid-19 pandemic and how the changes will impact the TV industry's future. The company noticed a significant increase in the consumption of both linear and broadcast TV, VOD, and premium subscription services. The launch of Disney Plus in the UK, along with the momentum from other recently launched apps like Britbox and Apple TV+, combined with expected further growth from Netflix, which has over 5 million new SVoD subscriptions that are estimated to have been “taken out” in the UK in less than a month since lockdown, have also contributed to the growth in consumption. “With more of our time spent indoors, we’ve naturally seen TV consumption rise across all age groups, as we continue to explore different forms of content during life in lockdown,” Futuresource Consulting wrote. “This leads us onto some much-needed positivity around the short and long-term opportunities across the TV industry, during what truly is an unsettling time for us all.”
BT has stated there has been a 45% increase in its broadband traffic during self-isolation periods. Despite the massive spike, the broadband is still far from reaching its network capacity, increasing the likelihood of increased consumption. With more time on people’s hands during the period of stay-at-home restrictions, there has also been a shift in consumer content interest. Viewers have been exploring different genres that can serve as alternatives to replace gaps in their usual TV schedule. For example, soap operas, in particular, are being placed on hold due to the temporary freeze in production. As a result, the older generation has been exposed to a wider environment of platforms, genres, and services, providing them with interesting alternatives away from their usual dependence on Live TV. Networks have successfully proven their ability to cope with the sudden demand, posing the big question as to how this will accelerate the speed of IP delivery in the future.
Social media and Youtube have captured a much wider audience since the outbreak began, with Joe Wickes hitting almost 1 million live streams on YouTube. Futuresource also saw also an increase in usage of short clip stories across Instagram, providing advice, entertainment suggestions, etc.. Esports and virtual racing have developed a new audience over the last few weeks and has significantly widened its demographic. In the future, SVOD services will need to work on subscriber retention in H2 as multiple SVOD uptakes will remain in the commonplace. Futuresource Consulting’s Living With Digital survey suggests a desire for an additional service in 2020, and in some cases, multiple services.
With linear TV still forming a crucial part of consumers’ viewing habits, especially since they are seeking a source for news related to the pandemic the world is battling, they are now balancing SVOD platforms like Netflix and live-TV updates that maintain them informed during the outbreak. Viewing level diversity will continue to fluctuate after the pandemic ends. The period will provide more opportunities for key players to broaden the demographic outside of their usual target market. Behavioral changes noted during social-distancing periods may impact the type of content genres being commissioned. A long-term reinvention in advertising should be expected in the future, as the industry will be pressured to make up for the shortfall in revenue.
With more of our time spent indoors, we’ve naturally seen TV consumption rise across all age groups, as we continue to explore different forms of content during life in lock down. This leads us onto some much-needed positivity around the short and long-term opportunities across the TV industry, during what truly is an unsettling time for us all.” Futuresource Consulting
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