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.
Jennifer Choi What have we done for you lately?
Edward Roussel Tech companies get aggressive in local
Jacqué Palmer The rise of the plain-text email newsletter
Linda Solomon Wood Canada steps up for journalism
Cory Bergman The year after a thousand earthquakes
Marie Shanahan Journalism schools stop perpetuating the status quo
Ariane Bernard Going solo is still only a path for the few
Julia B. Chan and Kim Bui Millennials are ready to run things
Ryan Kellett The bundle gets bundled
Rishad Patel From direct-to-consumer to direct-to-believers
Samantha Ragland The year of journalists taking initiative
Joni Deutsch Local arts and music make journalism more joyous
J. Siguru Wahutu Journalists still wrongly think the U.S. is different
Mariano Blejman It’s time to challenge autocompleted journalism
David Chavern Local video finally gets momentum
Chicas Poderosas More voices mean better information
Ernie Smith Entrepreneurship on rails
José Zamora Walking the talk on diversity
Rodney Gibbs Zooming beyond talking heads
Kevin D. Grant Parachute journalism goes away for good
Stefanie Murray and Anthony Advincula Expect to see more translations and non-English content
Julia Angwin Show your (computational) work
Moreno Cruz Osório In Brazil, a push for pluralism
Pablo Boczkowski Audiences have revolted. Will newsrooms adapt?
Marissa Evans Putting community trauma into context
Zizi Papacharissi The year we rebuild the infrastructure of truth
Candis Callison Calling it a crisis isn’t enough (if it ever was)
Eric Nuzum Podcasting dodged a bullet in 2020, but 2021 will be harder
M. Scott Havens Traditional pay TV will embrace the disruption
Aaron Foley Diversity gains haven’t shown up in local news
Ben Collins We need to learn how to talk to (and about) accidental conspiracists
Taylor Lorenz Journalists will learn influencing isn’t easy
Francesco Zaffarano The year we ask the audience what it needs
Amara Aguilar Journalism schools emphasize listening
Rasmus Kleis Nielsen Stop pretending publishers are a united front
Rachel Schallom The rise of nonprofit journalism continues
Nico Gendron Ask your readers to help build your products
Alicia Bell and Simon Galperin Media reparations now
Mike Caulfield 2021’s misinformation will look a lot like 2020’s (and 2019’s, and…)
Danielle C. Belton A decimated media rededicates itself to truth
Tim Carmody Spotify will make big waves in video
Robert Hernandez Data and shame
Annie Rudd Newsrooms grow less comfortable with the “view from above”
Kawandeep Virdee Goodbye, doomscroll
Gordon Crovitz Common law will finally apply to the Internet
Patrick Butler Covid-19 reporting has prepared us for cross-border collaboration
John Ketchum More journalists of color become newsroom founders
Francesca Tripodi Don’t expect breaking up Google and Facebook to solve our information woes
Nisha Chittal The year we stop pivoting
Rick Berke Virtual events are here to stay
Mike Ananny Toward better tech journalism
Rachel Glickhouse Journalists will be kinder to each other — and to themselves
Bill Adair The future of fact-checking is all about structured data
Hossein Derakhshan Mass personalization of truth
Tauhid Chappell and Mike Rispoli Defund the crime beat
Marcus Mabry News orgs adapt to a post-Trump world (with Trump still in it)
Kristen Muller Engaged journalism scales
Sara M. Watson Return of the RSS reader
Kate Myers My son will join every Zoom call in our industry
Michael W. Wagner Fractured democracy, fractured journalism
Joanne McNeil Newsrooms push back against Ivy League cronyism
AX Mina 2020 isn’t a black swan — it’s a yellow canary
Cindy Royal J-school grads maintain their optimism and adaptability
Heidi Tworek A year of news mocktails
Chase Davis The year we look beyond The Story
Zainab Khan From understanding to feeling
Gonzalo del Peon Collaborations expand from newsrooms to the business side
Sarah Stonbely Videoconferencing brings more geographic diversity
Doris Truong Indigenous issues get long-overdue mainstream coverage
Jesse Holcomb Genre erosion in nonprofit journalism
Tamar Charney Public radio has a midlife crisis
Hadjar Benmiloud Get representative, or die trying
Catalina Albeanu Publish less, listen more
Jody Brannon People won’t renew
Masuma Ahuja We’ll remember how interconnected our world is
Matt DeRienzo Citizen truth brigades steer us back toward reality
Megan McCarthy Readers embrace a low-information diet
John Garrett A surprisingly good year
Christoph Mergerson Black Americans will demand more from journalism
Janet Haven and Sam Hinds Is this an AI newsroom?
Sam Ford We’ll find better ways to archive our work
Sumi Aggarwal News literacy programs aren’t child’s play
Andrew Donohue The rise of the democracy beat
Gabe Schneider Another year of empty promises on diversity
Ben Werdmuller The web blooms again
Imaeyen Ibanga Journalism gets unmasked
Richard Tofel Less on politics, more on how government works (or doesn’t)
Errin Haines Let’s normalize women’s leadership
Meredith D. Clark The year journalism starts paying reparations
Charo Henríquez A new path to leadership
John Saroff Covid sparks the growth of independent local news sites
Brian Moritz The year sports journalism changes for good
Tanya Cordrey Declining trust forces publishers to claim (or disclaim) values
Nonny de la Pena News reaches the third dimension
Mandy Jenkins You build trust by helping your readers
Brandy Zadrozny Misinformation fatigue sets in
Andrew Ramsammy Stop being polite and start getting real
Burt Herman Journalists build post-Facebook digital communities
Sue Cross A global consensus around the kind of news we need to save
Kerri Hoffman Protecting podcasting’s open ecosystem
Parker Molloy The press will risk elevating a Shadow President Trump
Beena Raghavendran Journalism gets fused with art
Colleen Shalby The definition of good journalism shifts
Jessica Clark News becomes plural
Nicholas Jackson Blogging is back, but better
Pia Frey Building growth through tastemakers and their communities
Alyssa Zeisler Holistic medicine for journalism
Loretta Chao Open up the profession
Victor Pickard The commercial era for local journalism is over
C.W. Anderson Journalism changed under Trump — will it keep changing under Biden?
Ståle Grut Network analysis enters the journalism toolbox
Ariel Zirulnick Local newsrooms question their paywalls
Whitney Phillips Facts are an insufficient response to falsehoods
Celeste Headlee The rise of radical newsroom transparency
Jer Thorp Fewer pixels, more cardboard
Alfred Hermida and Oscar Westlund The virus ups data journalism’s game
A.J. Bauer The year of MAGAcal thinking
Raney Aronson-Rath To get past information divides, we need to understand them first
Sonali Prasad Making disaster journalism that cuts through the noise
Jim Friedlich A newspaper renaissance reached by stopping the presses
Matt Skibinski Misinformation won’t stop unless we stop it
Logan Jaffe History as a reporting tool
Talmon Joseph Smith The media rejects deficit hawkery
Jeremy Gilbert Human-centered journalism
Steve Henn Has independent podcasting peaked?
Shaydanay Urbani and Nancy Watzman Local collaboration is key to slowing misinformation
Nikki Usher Don’t expect an antitrust dividend for the media
Anna Nirmala Local news orgs grasp the urgency of community roots
Jonas Kaiser Toward a wehrhafte journalism
John Davidow Reflect and repent
Don Day Business first, journalism second
Anthony Nadler Journalism struggles to find a new model of legitimacy
Garance Franke-Ruta Rebundling content, rebuilding connections
Sarah Marshall The year audiences need extra cheer
Ashton Lattimore Remote work helps level the playing field in an insular industry
Bo Hee Kim Newsrooms create an intentional and collaborative culture
Ray Soto The news gets spatial
Nabiha Syed Newsrooms quit their toxic relationships
Mark Stenberg The rise of the journalist-influencer
Cherian George Enter the lamb warriors
Juleyka Lantigua The download, podcasting’s metric king, gets dethroned
Renée Kaplan Falling in love with your subscription
Joshua P. Darr Legislatures will tackle the local news crisis
Jennifer Brandel A sneak peak at power mapping, 2073’s top innovation
Jean Friedman-Rudovsky and Cassie Haynes A shift from conversation to action
Mark S. Luckie Newsrooms and streaming services get cozy
Benjamin Toff Beltway reporting gets normal again, for better and for worse
Astead W. Herndon The Trump-sized window of the media caring about race closes again
David Skok A pandemic-prompted wave of consolidation
Delia Cai Subscriptions start working for the middle
Laura E. Davis The focus turns to newsroom leaders for lasting change