Traditional broadcasters are discovering untapped revenue potential by expanding beyond conventional distribution channels. As viewing habits shift and technology advances, regional broadcasters face both an opportunity and imperative to adapt their distribution strategies. This analysis examines how broadcasters can break geographical barriers and build direct customer relationships through OTT platforms, whilst protecting existing revenue streams.
The broadcasting landscape has undergone substantial change, with traditional channels now sharing space with internet-based distribution. While conventional broadcasting remains viable, its inherent limitations – particularly around geographical reach and audience insights – create natural constraints on growth. Regional broadcasters, especially those producing specialist content, find themselves at a crossroads between maintaining existing models and embracing new distribution methods.
Traditional broadcasting presents two key constraints. First, geographical limitations mean broadcasters can only reach audiences within specific territories through conventional distribution methods. Second, whilst broadcasters maintain B2C relationships through traditional channels, they lack direct ownership of valuable audience data and insights that could drive future growth.
Consider a specialist channel focused on fishing content. Through traditional broadcasting, they might reach a limited audience through premium TV packages, receiving a modest portion of subscription revenues. Their potential viewership is constrained by both geography and platform accessibility – they can only reach viewers who subscribe to specific TV packages in their broadcast region.
By developing their streaming presence, broadcasters can directly reach viewers through internet-based distribution, providing several advantages:
- Global Reach: OTT platforms allow broadcasters to access audiences anywhere with internet access, opening new markets without needing extensive local agreements.
- Direct Audience Relationships: OTT enables broadcasters to collect viewer data, understand engagement, and create targeted advertising opportunities.
- Flexible Monetisation: Broadcasters can experiment with various revenue models, such as offering free, ad-supported content while maintaining premium services.
Successful implementation requires attention to several factors:
- Technical Infrastructure: High-quality streaming necessitates robust capabilities across devices, including reliable content delivery networks and user management systems.
- Content Rights Management: Broadcasters must ensure they have the appropriate rights for expanded distribution.
- Operational Capabilities: Managing an OTT platform requires different skills, including customer support and digital marketing.
Broadcasters can take a hybrid approach, balancing traditional distribution with direct-to-consumer capabilities, like offering catch-up content through branded platforms. OTT platforms allow specialists to serve existing audiences better while reaching new ones, such as providing archived content alongside premium broadcasts.
The economics of broadcasting will increasingly shift toward digital distribution. Developing OTT capabilities is becoming a strategic imperative, enabling broadcasters to capture new opportunities as viewing habits evolve. Viewing OTT not as a replacement but as a complement to traditional broadcasting can help build sustainable growth models while maintaining existing revenue streams.
The key lies in viewing OTT platforms not as a replacement for traditional broadcasting, but as a complementary capability that expands reach and deepens audience relationships. By taking measured steps toward digital distribution whilst maintaining existing revenue streams, broadcasters can build sustainable models for future growth.
