Have you already bailed on your New Year’s resolutions? Maybe you’ll have better luck setting some goals for your business.
To get you started, here are my top 5 predictions for 2024 ― along with some attainable resolutions that will help you successfully navigate the year’s challenges and opportunities.
1. CTV will transition from its original gold rush stage to more sustainable, long-term profitability.
Growth was the key focus for the past several years ― growth in subscribers, growth in viewership, growth in library size or hours of live sports. A lot of that growth came at a cost that is just not sustainable. In 2024, we’ll see the pivot back towards more rational and scalable business models.
While early CTV services focused on subscription, they are now seeing that audience monetization through advertising is just as important to raise average revenue per user (ARPU) to levels required to justify the high content spend. That’s going to lead into what I feel will be one of the key questions our industry faces in 2024: How do we blend the advertising models of TV and digital to create a new, optimized ad model for CTV?
In many ways, CTV inventory is better than linear TV because it has the capabilities to be addressable and measurable. But if you treat CTV inventory like digital inventory, you erode its value by taking away the premium aspects of TV such as brand safety, mass simultaneous reach, or fixed placements for sponsorship. CTV is clearly over-indexed towards digital at the moment, which is why you see the imbalance between supply and demand driving CPMs down.
Everybody’s doing it.
Amazon confirmed in early January that it will introduce advertising to its Prime Video streaming service this year. Subscribers will pay extra for an ad-free experience.
According to a Bank of America analysis, the move could boost annual revenue by as much as $5 billion.
New Year’s Resolution:
Find the formula that moves CTV back toward premium rates and fix the viewer experience to make CTV advertising more valuable.
2. …(BUT first) we’ll need to navigate a spate of new CTV and privacy regulations.
In 2024, I expect to see an increase in regulations, particularly concerning CTV services. Last year, Ofcom in the UK announced its intention to apply the same content and advertising regulations to CTV that have long been applied to traditional broadcast TV. This is likely to become a global trend in 2024, with other jurisdictions following suit.
And the same applies to privacy regulations. The GDPR has established a baseline for European countries, and the CCPA in California is a notable example of similar developments in the U.S. These consumer privacy regulations will affect how we personalize content and target advertising and present a challenge in leveraging technology within their constraints. Ultimately, we will find solutions to these challenges, but they introduce a new set of obstacles that we must navigate to continue advancing in our industry.
The UK’s Media Bill received a royal shout-out when King Charles III opened Parliament last November.
One of the key points in the bill is the extension of media regulator Ofcom’s powers to cover streaming services.
New Year’s Resolution:
Be proactive. Stay informed about legislative developments, actively engage with regulatory bodies, and develop contingency plans to mitigate the potential impact of different regulatory outcomes.
3. AI will begin to settle into its proper place.
From a purely technical (read: not existential) perspective, I think we’ll see a more pragmatic view of artificial intelligence (AI). While this technology may have been somewhat overhyped in its early stages, it’s a valuable tool that will continue to weave its way into our industry. Generative AI, for instance, can be brought back into the industry in the same way that earlier technologies like machine learning and pattern recognition have been. For example, Imagine’s Care Group is looking at how they can respond more efficiently to customer questions on our software and systems. They are doing this by building a knowledge base leveraging our extensive ticket system data and then training AI on it.
We’ll also continue to see AI being introduced into content creation, playout, and advertising. This will initially be most successful in a supporting role, by making current workflows and operators more efficient. As AI moves close to the center of workflows like creating scripts, news stories, or personalized advertising it seems likely that the industry will need to take a pause as regulation, privacy, and fact-checking are put in place to govern the use of AI.
New Year’s Resolution:
Approach AI advancements realistically and practically. They are tools to solve problems ― not magic wands.
4. SMPTE ST 2110 will continue to be the gift that keeps on giving.
In 2024, we’ll see SMPTE ST 2110 continue to establish itself as the global standard for live production ― a progression that underscores the growing significance of IP technology within our industry. Organizations like the VSF, through their ground-to-cloud and cloud-to-ground initiatives, have played a pivotal role in this shift. And while ST 2110 has previously been reserved for major events, we’re seeing that change as the technology matures and becomes more suitable for more everyday use and routine events.
The standard’s growing popularity stems from its cost-effectiveness and flexibility, particularly when coupled with software control and network orchestration. In addition, the ratification of JPEG XS has been a pivotal moment in enabling live, low-latency, high-quality contribution to the cloud, further accelerating the adoption of IP technology.
University of Michigan rocks the Big House with ST 2110.
New Year’s Resolution:
Strike the right balance. Flexibly mix SDI and ST 2110 solutions and migrate to IP at a pace that is right for your business.
5. It’s still not easy being green – but IP and COTS technology will help.
Finally, in 2024 I expect to see an increased focus on green initiatives in terms of power consumption and e-waste. This was a hot topic at IBC2023 and one that needs to continue being discussed. While ST 2110 and IP-based production is inherently more environmentally friendly compared to older SDI solutions, regulatory changes in the EU and other regions may mandate that carbon footprints become a standard consideration when making technology decisions.
And when it comes to reducing e-waste, COTS equipment offers a longer lifespan and greater versatility than older modular equipment. As infrastructure transitions to ST 2110, COTS equipment can be repurposed — rather than rendered obsolete — an approach that not only reduces e-waste, but also represents a proactive decision to invest in sustainable technology solutions.
New Year’s Resolution:
Tap industry-specific resources such as The Flint and Kibo121 to get the latest sustainability news and guidance on taking practical steps toward a greener future.
Conclusion
As the industry faces a continuing shift from linear to digital, new regulations, and pressure to achieve carbon footprint improvements, innovative media companies will use enabling technology tools such as AI, ST 2110 and converged monetization solutions to address these challenges and forge their own path and pace to the future of broadcasting.
It’s going to be an exciting year!
