Linear TV isn’t dying - it’s just going online

Viewing numbers today paint a startlingly grim picture for traditional TV.

Way back in 2003, former ratings juggernaut Coronation Street topped the ‘Live TV’ ratings for the year, with 19.4 million people tuning in to see serial killer Richard Hillman get his comeuppance – closely followed by 16.7 million viewers witnessing the return of ‘Dirty’ Den on Eastenders. 

But two decades on, aside from the once-in-a-lifetime spectacle of the Royal Coronation (18.8 million viewers), the biggest live broadcast of last year was the finale of Happy Valley (10.6 million).

So, we’re currently living through a decline in traditional linear TV. Though audiences are watching more video content than ever, they’re moving their screen time to digital platforms, including catch up TV.

However, it’s important to understand what this shift to stream is and what isn’t: Because even though viewers are switching to new platforms, it doesn’t mean that they don’t want linear. And that’s why we’re working closely with our playout partners – to help them take advantage of the enormous linear streaming opportunities ahead.

Life in the FAST lane

Over the last few years there’s been an explosion in Free Ad-Supported TV (FAST) channels in the US market, as Over The Top (OTT) players have taken advantage of the streaming revolution to offer more specialised or tailored linear programming, without the bandwidth and regulatory constraints of traditional broadcast. And the UK is now starting to see growth too, with ​​21% of video users watching FAST channels weekly*, as broadcasters and content owners test the water with this new type of service. 

This means that in many streaming apps today, viewers looking for a “lean-back” television experience can tune into full-length live events, or enjoy content from deep within broadcast catalogues, similar to the traditional TV viewing experience, but with more targeted advertising. However, this does mean that searching and actually finding something to watch can be a challenge, which is why streaming services like ITVX are now trying to offer more personalised programming. 
 

For broadcasters, FAST channels are great news. Properly curated, they’re a great way to leverage catalogue content to increase viewing hours and improve user retention, by ensuring there's always something easy to watch.

FAST is also great for viewers who may appreciate not needing to actively choose what to watch, or for viewers seeking an easy second screen experience. And it’s attractive to advertisers too – enabling a two-way connection between customers and brands in a way that traditional broadcast can’t replicate: Advertising can be data-driven and personalised to individual viewers to maximise returns, and calls-to-action can be activated directly through the streaming app.

FAST forward

FAST presents an enormous opportunity for broadcasters. Channels can be spun up and wound down to respond to consumer demand, and there’s an opportunity to connect viewers and advertisers in new ways.

But behind the scenes, we know from working with our broadcast partners that the story is more complicated, as embracing FAST may mean transforming content management processes, workflows and the technology stack that systems are built on.

​​​Further complicating the landscape is the complex ecosystem surrounding FAST channels. Traditional models often involve numerous intermediaries – distribution platforms, ad networks, and service providers – each taking a cut from the ad revenue. This significantly reduces the amount reaching the content creators themselves. In fact, it's estimated that only 10% of ad revenue actually reaches broadcast studios, which stands in stark contrast to platforms like YouTube, where creators can directly earn up to three times more from their content.

​​​But there are huge opportunities too. Like using Artificial Intelligence (AI) to not only better understand audiences and deliver relevant content, but to unlock valuable data for advertisers - making our clients even more attractive partners.

The transformation from traditional TV broadcasting to Next-Generation OTT platforms offers an exciting opportunity. Whether you're thinking about FAST channels, personalised AVOD experiences, pop-up live events or smarter ad-tech and analytics, one thing is for certain – to navigate this landscape and maximise your reach, having the right technology partner alongside you is crucial.  
 

Get in touch with our BT Media and Broadcast team today to discover how they can help your company move into the FAST lane.

* Broadcast Now: Research finds FAST growth while SVOD slows