Will Dish Network’s “Sling TV” Push Streaming Video Content Beyond the Tipping Point?

Back to BLOG

Filed Under: Industry Trends

We’re in the midst of a video media revolution.

With the recent proliferation of new digital, social and mobile media channels chipping away at the traditional media model, both media companies and marketers are rethinking and redefining their traditional roles and strategies.

One of the most significant changes the media marketplace is the shift away from traditional TV broadcasting. As we highlighted recently in our 2015 media marketplace predictions, we think the new streaming content services will push the shift beyond the tipping point as they draw consumers away from traditional TV viewing habits.

Several media companies announced high-profile streaming services for their content last year, including HBO, CBS, and Showtime. But the launch of Dish Network’s Sling TV last week has the potential to dramatically accelerate the migration of viewers away from TV and to online video content.

What’s different about Sling TV? It is the first to aggregate and stream cable broadcasting content−including sporting events−in real-time, which is an important advantage. Sling TV promises to deliver the best catalogue of content. And as we saw with the growth of streaming music services over the past few years–specifically the competition between Pandora and Spotify–the provider with the best catalogue usually attracts the most subscribers.

So what does this mean for marketers? It’s both a challenge and an opportunity. Traditional TV viewing behaviors that were established in the 1950s are rapidly fading away, but demand for video content is at an all time high. These shifts are forcing marketers to reconsider how they allocate their media budget across traditional and emerging channels.

The upside? No longer will advertisers be held to targeting a standard and static 18-49 year-old audience through traditional TV. Media channels are fragmenting, and it is easier to identify and target specific consumer demographics with personalized content through programmatic ad campaigns. As a result, advertisers are executing more focused, impactful campaigns across digital and social channels and seeing better returns on their advertising spend.

The challenging aspect for marketers, however, is they now need to spread their media budgets across an ever widening range of media channels. To do so successfully, they must invest in the data and technology needed to manage a much more sophisticated programmatic advertising model.

While this shift may bring about some initial angst, the good news is that marketers are in a position to develop campaigns that resonate more closely with their consumers and deliver higher returns than traditional channels have in recent years.

How has the growth of online video content changed your media strategy?

[rpuplugin]

Jim Porçarelli
Jim is responsible for leading the company’s global strategic initiatives and he chairs the Executive Leadership Team. Jim brings 25 years strategic marketing and advertising experience to Active. Prior to joining the company in 2006, he was COO and Chief Client Officer at MediaCom (WPP) he was part of the core team that created MediaCom in the US and drove annual billings to $4.5 billion.

Full Bio »

Leave a reply