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AI was largely sidelined at the annual RTS gathering where the fate of public service media took precedence
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Consolidation of UK TV seems increasingly inevitable even if,
equally inevitably, each broadcaster vows to keep calm and carry on.
At the Royal Television Society’s annual convention in
London there was unanimous agreement that change was unstoppable but differences
of opinion about the extent.
“The prize for standing still simply isn't an option,” said
Jane Turton OBE, RTS Chair and Deputy CEO, Banijay Entertainment. “The
stakes are high.”
Describing the “unprecedented pace and scale of change”
Sophie Jones, CEO, RTS talked of “a pivotal, seismic moment unlike
anything we have encountered before.”
Since the RTS last gathered in Cambridge a year ago, the BBC
has a new Director General, Channel 4 and ITV have installed new CEOs and there’s
a new President at Five.
The lawyers and financiers have been busy too. Internationally,
Paramount's planned merger with Warner Bros. Discovery, Disney's full
acquisition of Hulu and Fox’s pending £16.5bn acquisition of Roku are signs
that scale
At home, All3Media’s £6bn merger with Banijay will create
the world’s largest independent production company (though ‘indie’ seems an inappropriate
badge for a group of this scale); Sky is buying ITV’s media and entertainment
business for £1.6bn; and Channel 4, the most vulnerable of the main UK
broadcasters, is setting up its own production division to fend off attack.
The BBC faces most scrutiny. With licence fee income fallen
by approximately £1.3bn over the past decade, equivalent to 25% of its funding
and with Charter settlement uncertain, it is making significant cuts to news,
sports and media technology.
“We are having to make half a billion pounds of savings and
we don't yet know what our future [financial agreement] will be,” said DG Matt
Brittin. “The way the BBC is currently funded by the licence fee is a busted
flush. We need a new mechanism if we're going to have the sort of scale of public
service media that we've had in the past.”
The former Google Europe boss called for a more open
approach to partnerships, arguing that the BBC should be present wherever
audiences consume media, from YouTube to Spotify and TikTok.
“We're trying to reinvent our apps at some speed. iPlayer
was incredible when it launched; it's way off the technology today. That’s no
fault of the people working on it but we have to invest in that so we can
fulfil our mission in better exposing audiences to this incredible content.”
Channel 4 future
Discussions are underway with Channel 4 about distributing
its programming on iPlayer, provided a way is found for the commercial
broadcaster to generate ad-revenues. The pressure is on both PSBs to merge
completely, something that CEO Priya Dogra ruled out.
“I don't want Channel 4 to be taken over by the BBC,” she
said. “Consolidation often leads to less choice whereas collaboration can increase
choice because it allows organisations with complementary strengths to work
together.”
Wayne Garvie, a former BBC head of entertainment, now
President, International Production, Sony Pictures Television thought the
writing was on the wall.
“If Channel 4 became part of a wider public service
broadcasting structure there could be benefits,” he said. “As things stand,
Channel 4 has a challenge around identity and long-term sustainability.
Frankly, it's difficult to see how Channel 4 survives indefinitely in its
current form. That's not their fault. The market is changing around them every
week.”
He was more positive about the BBC’s chances. “It's got a
brilliant new leader who is clearly not afraid to make difficult decisions.
Obviously, the BBC won't be able to do all the things it used to do, because
audiences have changed. PSBs can no longer rely on the linear schedule in the
way they once did. But let's be positive about the future.”
Mega-merger of UK PSB
Acknowledging that PSBs still produce world class shows,
Heather Jones, Chief Creative Officer EMEA and General Manager UK, Hearst
Networks said content alone was not enough.
“You also need a fantastic [streaming] product and you need
to understand discoverability and marketing,” she said. “The businesses that
are furthest ahead across all three areas are the streamers and Sky because
they've nailed each of those elements in a way that perhaps public service
broadcasters have not.”
Calling the BBC “Europe’s university of media” and saying
“no-one else would have commissioned Peaky Blinders”, writer, director
and executive producer Steven Knight advised the BBC to sell TV licences in the
US.
“Anyone in America who wants to get unbiased news, for
example, then buy a licence for iPlayer. It’s only [the cost of] a
subscription. I understand the BBC is not allowed to make a profit so all
revenues should be returned into programmes.”
Jeremy Clarkson was prepared to go further than anyone by
contemplating a full scale merger of all UK broadcasters, Sky included.
“If we had one great big broadcaster, let's call it
‘Britflix’, perhaps everyone could come together and make fewer programmes, but
make them bigger, better and properly funded,” he said.
Clarkson added that he would ringfence news and have that
paid for by the licence fee.
“The biggest problem with social media is accuracy and the
tendency to mistake opinion for news,” he said. “Having said that, I think old
media is suffering from the same problem to a dangerous degree. Opinion
increasingly being dressed up as news.”
Pressed as to why broadcasters are not discussing collective
consolidation, Sky’s Chief Advertising and Content Officer and CEO, Sky Studios
Cécile Frot-Coutaz said, “We have different business models and shareholding
structures.”
The sector had collaborated more in recent years, she said,
adding that UK broadcaster competition is no longer with each other but YouTube
and streamers.
Yet she doubled down on Sky’s “advantage” as a platform for
PSB content. The Comcast-owned business is in the process of buying ITV
channels and committed to maintaining news as a public service.
“The goal of our transformation is to create a business
model with more revenue streams that is sustainable to scale content. We know
that content is super important but so is the technology that goes with it
since as a viewer that effects your ability to engage with a platform,” she
said. “Bringing an ad-funded broadcaster with ad-funded streaming and
subscription TV will create scale.”
“Focus on what you do well”
Richard Halton, Country Manager, Roku UK said he believed
the global industry will wind up with just a handful of major TV
operating-system platforms.
“That means a platform has to be incredibly respectful of
the consumer, who simply wants to find something to watch quickly and of
content partners, who need revenue, data and proper brand credit for the
programmes they've invested in and produced. Platform businesses that
understand both sides of that equation are the ones that will succeed.”
As BBC head of strategy Halton was responsible for the BBC’s
first YouTube deal in 2006 and saw how online platforms would become more
important in how audiences choose what to watch.
“Audiences now sit at both ends of the spectrum,” he said. “At
one end, you've got niche FAST channels serving highly specific interests. At
the other, you've got major shared experiences like the World Cup, where
broadcasters come together to create huge moments for mass audiences. Platforms
need to support both with tailored search, recommendations and discovery.”
What's remarkable about the UK content economy isn't just
its ability to create new shows, he added, it's also the depth of its archive
and IP built over decades.
“One of the most profitable streaming services globally is
Crunchyroll, which proves the value of truly understanding a specific audience
and serving it exceptionally well.
“That may be the future for many broadcasters,” he said.
“Rather than trying to be everything to everyone, focus on what you do uniquely
well.
“The BBC's specialist expertise remains among the best in
the world, and that's a strength it should continue to build on.”
Clarkson: Event TV has to go big
Clarkson was sharing the stage with his daughter, Em
Clarkson, who has built her own media career online including with the chart-topping
podcast ‘Should I Delete That’.
Taking note of the rise of creator-led content the veteran
broadcaster believed that TV should go big or go home.
Ever since I started in television the argument has always
been the same,” he said. “We need to make fewer programmes, but make them
bigger and better. The problem is there was never really any urgency to do
that.
“We've all carried on making lots of programmes because it's
very difficult to stop. At some point, you've got to put money in the attic, as
it were. You've got to keep the machine running. But I think we're now reaching
a point where it has become imperative.
“Cinema is struggling and will increasingly become more like
theatre - a premium experience rather than a mass one.
“Meanwhile, there's a huge wave of creator-led content
coming up from underneath. And because of that, I genuinely believe television
has to become bigger.
“It has to do fewer things, but do them on a much grander
scale.”
He said that current discussions with Amazon Prime about a
successor to Clarkson's Farm “will have to be bigger and ambitious
enough to stand out against everything else that's competing for attention.
“We've always had event television, but there's far less of
it than there used to be. I think television now has to lean back into that.”
The rise of sports social
Gary Neville, former right-back and co-founder of soccer
content creators The Overlap, rejected suggestions that broadcasters should
attempt to compete directly with creator-led formats.
"What I don't understand is why people think the BBC,
ITV or Sky should be competing directly with something like The Overlap,"
he said, in a session devoted to the differences between legacy and social
media’s ability to reach sports fans. "They can never be the same
thing."
The appeal of independent digital formats, he argued, lies
in their freedom. Conversations can be closer to the way fans discuss football
in pubs.
"On The Overlap, I can swear, I can be more relaxed and
I can take conversations into places that fans would naturally take them,"
he said. "Broadcasters can't do that. They operate under Ofcom
rules."
Traditional broadcasters and creator-led platforms serve
different audience needs, he said, even when discussing the same stories.
“When myself, Roy [Keane] or Ian [Wright] appear on TV we
might say the same thing we’ve said on our programme but we say it in a
different way.”
Built around flagship formats such as The Fan Debate
and Stick to Football, his business is preparing to launch a daily
football news podcast in response to growing audience demand.
"When Ruben Amorim was sacked at 11 o'clock on a
Monday, we didn't have a programme for ten days," Neville said. "We
looked at that and thought: that's not right."
The same challenge emerged during developments surrounding
Manchester City's 115 charges, where major news broke days before The
Overlap was due to air.
"People don't want to wait six days for analysis
anymore," he said. "They don't even want to wait six hours.”
Signals to watch
The panel discussed which signal, of all the data collected
about audience viewing habits, was the one they valued most. For Neville, this
was audience sentiment. “A couple of hours after a programme goes out, I'll
read the first 20 or 30 comments from people who've watched it. That gives me a
feel for what people actually think.
“Sometimes they're critical. Sometimes they're harsh. That's
fine. What people are genuinely thinking about your content is still the most
important thing.”
Alex Kay-Jelski, Director, BBC Sport looks toward completion
rate. “If you've made a 60-second video, are people watching all 60 seconds? If
you've made a 60-minute documentary and everyone switches off after 10 minutes,
then you probably haven't made a very good documentary.
“People can sit there and say, ‘We had 10 million people
visit the live page.’ But if the live page was rubbish, then all you've done is
show 10 million people something rubbish. That's not good for your brand.”
For Nikki Doucet, CEO, Women's Super League it starts with
the product itself.
“If people care about what's happening on the pitch, they'll
want to watch. They'll consume more content. Everything else follows from
creating a competition that fans genuinely care about.”
The advice of Fiona Wood, Strategy Director, of
All3Media’s Little Dot Studios was to focus on engagement.
“Don’t obsess over follower counts. Subscribers and followers are increasingly vanity metrics. You don't have to follow a channel anymore to be served its content. The algorithm has completely changed that dynamic. You can overlook a lot of important moments if you're only focused on total views. Engagement shows you where niche communities are forming and where audiences are genuinely connecting with content."