CEO COLUMN
July 21, 2010
There is no denying that the media and communications landscape in Australia is changing. Technology is blurring once concrete market segments making analysis more complex and sometimes open to conjecture. While audience measurement comparisons with commercial and public broadcasters are relevant, it is also important to note some key variables that set subscription television (STV) apart from the other players.
Subscribers are the foundation of the STV model. In contrast, advertisers are the foundation of the commercial broadcasting model where program funding is directly linked to the number of viewers that are attracted to that programming. While advertising is an important element of STV it is not the basis upon which programming on the channels is funded. Funding for programs on STV relies more on subscriber and platform input.
The relationship that STV has formed with Australian viewers has resulted in the ability to provide more niche programming, to commission original and ground-breaking Australian content and offer a greater variety of content and services that appeal not only to viewers, but to advertisers that choose to target a specific audience rather than take a broad brush approach on commercial television.
In reality, STV offers the best of both worlds to viewers and advertisers. This is reflected by growth in television audiences, up 5% year on year in the core 16-54 demographic and also through advertising revenue growth, up 5% for the 08/09 period.
STV is constantly developing and enhancing the avenues for subscribers to directly interact with programs and advertisers. Interactive red button advertising campaigns, for example, have been successfully executed by many leading brands, including McDonalds, who conducted an interactive ad campaign which received nearly 23,000 entries, making it one of the most successful Australian interactive advertising campaigns ever.
In addition, the call has recently gone out to all STV food loving viewers to nominate their favourite eat outs in the hugely popular I Love Food Awards 2010. These awards are unique because they are the largest peoples’ choice restaurant awards in Australia.
Another example of integration and viewer engagement is Australia’s Next Top Model which premiered 20 July on FOX8. The social-networking savvy audience rushed to the website to post comments during the premiere, overloading the site with excess traffic. The conversations will continue throughout the series on the FOX8 website.
STV viewers have a special relationship with the brands, programs and platforms that provide services. So far we have seen that 34% of Australian households have made the decision to subscribe to STV because they want more. They want more choice, more live news and sport programs, exclusive drama, children’s and lifestyle programs, interactive features, and the ability to control and easily record programs or whole series, multiscreen viewing or downloadable content.
