Traditional pay TV will embrace the disruption

“The ‘new TV’ is here, and in 2021, I expect a seismic shift of advertising dollars to it.”

Everyone in the media business has a hot take on WarnerMedia’s decision to release all upcoming Warner Brothers movies on HBO Max the same day as in theaters. Whether you support or decry the move, however, misses the bigger point: Jason Kilar and John Stankey opted to dive head-first into the deep end of disruption, rather than slowly, begrudgingly accepting new realities on the horizon — and, in so doing, have hurtled the movie business toward that inevitable future.

My prediction for 2021 is that the traditional pay-TV business in the United States will experience a similar quantum jump.

Make no mistake: Traditional pay TV remains a big business. While ad revenue is expected to be down some 15 percent in the U.S., advertisers are still expected to spend $60 billion on TV spots this year. By year’s end, multichannel video programming distributors (MVPDs) are expected to generate nearly $210 billion in service revenue and reach over 60 percent of households worldwide.

The TV business has long, and successfully, worked to shield itself from disruption — indeed, networks continue to increase the monthly carriage fees they charge MVPDs for access to their content. But millions of consumers continue to cut the cord every year. Ultimately, the cracks in traditional pay TV’s foundation cannot withstand Covid-19’s economic earthquake.

What we see today is a gold rush. NBC is going all in on Peacock; CBS launched CBSN and All Access; Fox bought Tubi; ESPN and Discovery have tailored options for streaming. It is hard to miss the host of new channels (like Bloomberg Quicktake), new distribution platforms, and new consumer-focused options emerging across the over-the-top (OTT) landscape.

The “new TV” is here, and in 2021, I expect a seismic shift of advertising dollars to it. Advertisers will not only reallocate resources from traditional TV and digital into OTT, but also shift declining dollars from existing traditional media platforms.

The parable of the disrupted print media provides a continually valuable lesson in this arena. While many initially lamented the digital transition and branded the unwelcome shift as trading “dollars for dimes,” the fact is that audiences had already chosen digital as their platform. New digital upstarts, as well as traditional media players and brand partners that embraced the disruption, have found ways to convert those dimes into quarters, and some even into dollars. Those same entities foresaw — and shifted their focus to — mobile platforms once smartphones arrived, and are now moving swiftly (perhaps too swiftly) into streaming audio to take advantage of the eventual extinction of terrestrial radio. Those that didn’t and haven’t run fast enough into digital disruption are gone, acquired, or struggling.

The digital disruption of TV is now the fight that matters. It is the fight over the largest audience, the most captive hours, and the biggest economic pie. And in 2021, I expect media operators, publishers, platforms, and brands will take up this fight with heretofore unseen ardor.

The rise of digital is ceaseless and unyielding, but as the brilliant Mary Meeker has pointed out, history suggests a multi-year lag between rising audience engagement on new platforms and the media spend on such platforms. That “gap” between the time audiences spend and what media spend on OTT is the immense opportunity ahead for the industry. And next year, we’ll have a front-row seat to this paradigm shift.

M. Scott Havens is chief growth officer and global head of strategic partnerships for Bloomberg Media.

Everyone in the media business has a hot take on WarnerMedia’s decision to release all upcoming Warner Brothers movies on HBO Max the same day as in theaters. Whether you support or decry the move, however, misses the bigger point: Jason Kilar and John Stankey opted to dive head-first into the deep end of disruption, rather than slowly, begrudgingly accepting new realities on the horizon — and, in so doing, have hurtled the movie business toward that inevitable future.

My prediction for 2021 is that the traditional pay-TV business in the United States will experience a similar quantum jump.

Make no mistake: Traditional pay TV remains a big business. While ad revenue is expected to be down some 15 percent in the U.S., advertisers are still expected to spend $60 billion on TV spots this year. By year’s end, multichannel video programming distributors (MVPDs) are expected to generate nearly $210 billion in service revenue and reach over 60 percent of households worldwide.

The TV business has long, and successfully, worked to shield itself from disruption — indeed, networks continue to increase the monthly carriage fees they charge MVPDs for access to their content. But millions of consumers continue to cut the cord every year. Ultimately, the cracks in traditional pay TV’s foundation cannot withstand Covid-19’s economic earthquake.

What we see today is a gold rush. NBC is going all in on Peacock; CBS launched CBSN and All Access; Fox bought Tubi; ESPN and Discovery have tailored options for streaming. It is hard to miss the host of new channels (like Bloomberg Quicktake), new distribution platforms, and new consumer-focused options emerging across the over-the-top (OTT) landscape.

The “new TV” is here, and in 2021, I expect a seismic shift of advertising dollars to it. Advertisers will not only reallocate resources from traditional TV and digital into OTT, but also shift declining dollars from existing traditional media platforms.

The parable of the disrupted print media provides a continually valuable lesson in this arena. While many initially lamented the digital transition and branded the unwelcome shift as trading “dollars for dimes,” the fact is that audiences had already chosen digital as their platform. New digital upstarts, as well as traditional media players and brand partners that embraced the disruption, have found ways to convert those dimes into quarters, and some even into dollars. Those same entities foresaw — and shifted their focus to — mobile platforms once smartphones arrived, and are now moving swiftly (perhaps too swiftly) into streaming audio to take advantage of the eventual extinction of terrestrial radio. Those that didn’t and haven’t run fast enough into digital disruption are gone, acquired, or struggling.

The digital disruption of TV is now the fight that matters. It is the fight over the largest audience, the most captive hours, and the biggest economic pie. And in 2021, I expect media operators, publishers, platforms, and brands will take up this fight with heretofore unseen ardor.

The rise of digital is ceaseless and unyielding, but as the brilliant Mary Meeker has pointed out, history suggests a multi-year lag between rising audience engagement on new platforms and the media spend on such platforms. That “gap” between the time audiences spend and what media spend on OTT is the immense opportunity ahead for the industry. And next year, we’ll have a front-row seat to this paradigm shift.

M. Scott Havens is chief growth officer and global head of strategic partnerships for Bloomberg Media.

Parker Molloy   The press will risk elevating a Shadow President Trump

Julia B. Chan and Kim Bui   Millennials are ready to run things

Charo Henríquez   A new path to leadership

Sumi Aggarwal   News literacy programs aren’t child’s play

Tonya Mosley   True equity means ownership

Hadjar Benmiloud   Get representative, or die trying

Candis Callison   Calling it a crisis isn’t enough (if it ever was)

Tamar Charney   Public radio has a midlife crisis

Christoph Mergerson   Black Americans will demand more from journalism

Jeremy Gilbert   Human-centered journalism

Zizi Papacharissi   The year we rebuild the infrastructure of truth

A.J. Bauer   The year of MAGAcal thinking

Ben Collins   We need to learn how to talk to (and about) accidental conspiracists

John Garrett   A surprisingly good year

Whitney Phillips   Facts are an insufficient response to falsehoods

Imaeyen Ibanga   Journalism gets unmasked

Eric Nuzum   Podcasting dodged a bullet in 2020, but 2021 will be harder

Jonas Kaiser   Toward a wehrhafte journalism

Bill Adair   The future of fact-checking is all about structured data

Talmon Joseph Smith   The media rejects deficit hawkery

Chicas Poderosas   More voices mean better information

Danielle C. Belton   A decimated media rededicates itself to truth

Robert Hernandez   Data and shame

Rachel Schallom   The rise of nonprofit journalism continues

Joshua P. Darr   Legislatures will tackle the local news crisis

Rodney Gibbs   Zooming beyond talking heads

Pia Frey   Building growth through tastemakers and their communities

Ariel Zirulnick   Local newsrooms question their paywalls

Beena Raghavendran   Journalism gets fused with art

Sarah Stonbely   Videoconferencing brings more geographic diversity

Nabiha Syed   Newsrooms quit their toxic relationships

Matt DeRienzo   Citizen truth brigades steer us back toward reality

Chase Davis   The year we look beyond The Story

Moreno Cruz Osório   In Brazil, a push for pluralism

John Ketchum   More journalists of color become newsroom founders

Rasmus Kleis Nielsen   Stop pretending publishers are a united front

Nikki Usher   Don’t expect an antitrust dividend for the media

Shaydanay Urbani and Nancy Watzman   Local collaboration is key to slowing misinformation

Laura E. Davis   The focus turns to newsroom leaders for lasting change

Andrew Donohue   The rise of the democracy beat

Benjamin Toff   Beltway reporting gets normal again, for better and for worse

Tauhid Chappell and Mike Rispoli   Defund the crime beat

Zainab Khan   From understanding to feeling

Mandy Jenkins   You build trust by helping your readers

John Saroff   Covid sparks the growth of independent local news sites

Delia Cai   Subscriptions start working for the middle

Masuma Ahuja   We’ll remember how interconnected our world is

Francesca Tripodi   Don’t expect breaking up Google and Facebook to solve our information woes

Ashton Lattimore   Remote work helps level the playing field in an insular industry

Natalie Meade   Journalism enters rehab

Raney Aronson-Rath   To get past information divides, we need to understand them first

Kerri Hoffman   Protecting podcasting’s open ecosystem

Anna Nirmala   Local news orgs grasp the urgency of community roots

Jer Thorp   Fewer pixels, more cardboard

Janet Haven and Sam Hinds   Is this an AI newsroom?

Rick Berke   Virtual events are here to stay

Logan Jaffe   History as a reporting tool

Astead W. Herndon   The Trump-sized window of the media caring about race closes again

Cindy Royal   J-school grads maintain their optimism and adaptability

Gabe Schneider   Another year of empty promises on diversity

Ryan Kellett   The bundle gets bundled

Anthony Nadler   Journalism struggles to find a new model of legitimacy

Bo Hee Kim   Newsrooms create an intentional and collaborative culture

Nisha Chittal   The year we stop pivoting

Richard Tofel   Less on politics, more on how government works (or doesn’t)

Mariano Blejman   It’s time to challenge autocompleted journalism

Jesse Holcomb   Genre erosion in nonprofit journalism

Aaron Foley   Diversity gains haven’t shown up in local news

Ernie Smith   Entrepreneurship on rails

Michael W. Wagner   Fractured democracy, fractured journalism

María Sánchez Díez   Traffic will plummet — and it’ll be ok

Alyssa Zeisler   Holistic medicine for journalism

Mike Ananny   Toward better tech journalism

Jean Friedman-Rudovsky and Cassie Haynes   A shift from conversation to action

Celeste Headlee   The rise of radical newsroom transparency

Mike Caulfield   2021’s misinformation will look a lot like 2020’s (and 2019’s, and…)

Doris Truong   Indigenous issues get long-overdue mainstream coverage

Don Day   Business first, journalism second

Stefanie Murray and Anthony Advincula   Expect to see more translations and non-English content

José Zamora   Walking the talk on diversity

Alicia Bell and Simon Galperin   Media reparations now

Cherian George   Enter the lamb warriors

Sonali Prasad   Making disaster journalism that cuts through the noise

Julia Angwin   Show your (computational) work

Steve Henn   Has independent podcasting peaked?

Ben Werdmuller   The web blooms again

Cory Haik   Be essential

Alfred Hermida and Oscar Westlund   The virus ups data journalism’s game

Sara M. Watson   Return of the RSS reader

Sue Cross   A global consensus around the kind of news we need to save

Rachel Glickhouse   Journalists will be kinder to each other — and to themselves

Kevin D. Grant   Parachute journalism goes away for good

Jim Friedlich   A newspaper renaissance reached by stopping the presses

Brian Moritz   The year sports journalism changes for good

Marie Shanahan   Journalism schools stop perpetuating the status quo

Victor Pickard   The commercial era for local journalism is over

Marcus Mabry   News orgs adapt to a post-Trump world (with Trump still in it)

Kristen Muller   Engaged journalism scales

David Skok   A pandemic-prompted wave of consolidation

Loretta Chao   Open up the profession

Ariane Bernard   Going solo is still only a path for the few

Tim Carmody   Spotify will make big waves in video

M. Scott Havens   Traditional pay TV will embrace the disruption

Francesco Zaffarano   The year we ask the audience what it needs

Marissa Evans   Putting community trauma into context

Jennifer Choi   What have we done for you lately?

Gordon Crovitz   Common law will finally apply to the Internet

Tanya Cordrey   Declining trust forces publishers to claim (or disclaim) values

Nicholas Jackson   Blogging is back, but better

Jennifer Brandel   A sneak peak at power mapping, 2073’s top innovation

Colleen Shalby   The definition of good journalism shifts

Juleyka Lantigua   The download, podcasting’s metric king, gets dethroned

Kate Myers   My son will join every Zoom call in our industry

Sarah Marshall   The year audiences need extra cheer

Tshepo Tshabalala   Go niche

Joni Deutsch   Local arts and music make journalism more joyous

Taylor Lorenz   Journalists will learn influencing isn’t easy

Gonzalo del Peon   Collaborations expand from newsrooms to the business side

Errin Haines   Let’s normalize women’s leadership

Mark Stenberg   The rise of the journalist-influencer

Jessica Clark   News becomes plural

Jody Brannon   People won’t renew

Nonny de la Pena   News reaches the third dimension

Joanne McNeil   Newsrooms push back against Ivy League cronyism

Heidi Tworek   A year of news mocktails

Nico Gendron   Ask your readers to help build your products

Ray Soto   The news gets spatial

John Davidow   Reflect and repent

Ståle Grut   Network analysis enters the journalism toolbox

Pablo Boczkowski   Audiences have revolted. Will newsrooms adapt?

Samantha Ragland   The year of journalists taking initiative

Rishad Patel   From direct-to-consumer to direct-to-believers

Andrew Ramsammy   Stop being polite and start getting real

Annie Rudd   Newsrooms grow less comfortable with the “view from above”

Megan McCarthy   Readers embrace a low-information diet

Catalina Albeanu   Publish less, listen more

Hossein Derakhshan   Mass personalization of truth

Sam Ford   We’ll find better ways to archive our work

An Xiao Mina   2020 isn’t a black swan — it’s a yellow canary

Mark S. Luckie   Newsrooms and streaming services get cozy

Meredith D. Clark   The year journalism starts paying reparations

Cory Bergman   The year after a thousand earthquakes

Basile Simon   Graphics, unite

Kawandeep Virdee   Goodbye, doomscroll

Jacqué Palmer   The rise of the plain-text email newsletter

Brandy Zadrozny   Misinformation fatigue sets in

Patrick Butler   Covid-19 reporting has prepared us for cross-border collaboration

Renée Kaplan   Falling in love with your subscription

Amara Aguilar   Journalism schools emphasize listening

David Chavern   Local video finally gets momentum

Linda Solomon Wood   Canada steps up for journalism

Edward Roussel   Tech companies get aggressive in local

J. Siguru Wahutu   Journalists still wrongly think the U.S. is different

Burt Herman   Journalists build post-Facebook digital communities

Matt Skibinski   Misinformation won’t stop unless we stop it

Garance Franke-Ruta   Rebundling content, rebuilding connections

C.W. Anderson   Journalism changed under Trump — will it keep changing under Biden?