11.4 Competition and collaboration between streaming and traditional TV
4 min read•july 30, 2024
Streaming platforms and traditional TV networks are locked in a fierce battle for viewers' attention. , Amazon, and ###+_0### compete with , , and cable networks, while tech giants like Apple and Google join the fray. This dynamic landscape is reshaping the entertainment industry.
Content strategies, pricing models, and user experiences differentiate streaming from traditional TV. While streaming focuses on binge-worthy originals and personalized recommendations, traditional TV leverages live events and established schedules. Collaborations and partnerships blur the lines between these once-distinct realms.
Streaming vs Traditional TV Players
Major Streaming Platforms and Networks
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- Streaming services encompass major platforms (Netflix, , , Disney+, ) and niche platforms targeting specific genres or demographics
- Traditional TV networks include broadcast networks (ABC, CBS, , ) and cable networks (, , , ) operating through linear programming schedules
- Media conglomerates (Disney, , , ) often own both traditional TV networks and streaming platforms creating complex competitive dynamics
- Example: Disney owns ABC (broadcast network), ESPN (cable network), and Disney+ (streaming platform)
Tech Giants and International Players
- Tech companies (Apple, Google) have entered the streaming market leveraging existing user bases and technological infrastructure
- utilizes the company's vast ecosystem of devices and services
- Google's combines live TV streaming with the popular video-sharing platform
- International streaming services play significant roles in their markets and expand globally
- and serve UK audiences with British content
- dominates the Indian market offering a mix of local and international programming
Streaming vs Traditional TV Strategies
Content and Pricing Models
- Streaming platforms focus on binge-worthy original content and extensive libraries
- Netflix's "Stranger Things" and "The Crown" exemplify high-budget original productions
- Hulu offers next-day streaming of current TV shows from various networks
- Traditional TV relies on advertising revenue and cable/satellite fees while streaming services use subscription-based models
- Cable TV packages often include hundreds of channels for a monthly fee
- Netflix offers tiered pricing based on video quality and number of simultaneous streams
- Content windowing and exclusivity deals control availability and value across platforms and time periods
- HBO's "Game of Thrones" remained exclusive to cable and HBO's streaming platforms during its initial run
- Some shows become available on multiple streaming platforms after their initial broadcast run
User Experience and Marketing
- Streaming platforms utilize algorithms for content recommendations and subscriber retention
- Netflix's recommendation system analyzes viewing history to suggest personalized content
- Amazon Prime Video integrates with users' shopping habits for tailored suggestions
- Traditional TV networks launch their own streaming services to compete in the digital space
- CBS All Access (now Paramount+) offers exclusive original content alongside CBS programming
- Peacock provides tiered access to NBCUniversal's content library and original series
- Marketing strategies differ with streaming using data-driven targeted advertising and traditional TV leveraging established programming schedules and live events
- Netflix uses personalized email campaigns and social media to promote new releases
- Traditional networks heavily promote season premieres and finales during prime-time slots
Streaming and Traditional TV Collaboration
Content Partnerships and Distribution
- agreements between streaming platforms and traditional TV networks create high-quality content
- "The Great British Baking Show" is co-produced by the BBC and Netflix for global distribution
- Hulu and FX collaborate on original series like "The Bear" and "Reservation Dogs"
- Licensing deals allow streaming services to offer current seasons or back catalogs of traditional TV shows
- Friends" became a cornerstone of Netflix's library before moving to HBO Max
- Hulu offers next-day streaming for many current broadcast TV shows
- Traditional TV networks use streaming platforms as additional distribution channels reaching cord-cutters and younger audiences
- CBS makes many of its shows available on Paramount+ shortly after broadcast
- The CW network offers free streaming of its shows on its website and app
Cross-Promotion and Technology Partnerships
- Cross-promotion strategies employed where traditional TV shows promote streaming availability and vice versa
- NBC promotes Peacock during its broadcast of major sporting events like the Olympics
- Netflix advertises its original movies in traditional movie theaters
- Technology partnerships enable traditional TV networks to improve their digital offerings
- Comcast's X1 platform integrates Netflix and other streaming apps directly into its cable box interface
- Smart TVs from manufacturers like Samsung and LG include built-in apps for both traditional TV and streaming services
Future of Streaming vs Traditional TV
Technological Advancements and Regulatory Changes
- Technological advancements (5G, virtual reality, interactive content) may blur lines between streaming and traditional TV experiences
- 5G networks could enable high-quality mobile streaming without buffering
- Virtual reality platforms like Oculus could offer immersive TV viewing experiences
- Regulatory changes (net neutrality laws, content quotas) could significantly impact the competitive landscape
- European Union's content quota requires streaming services to offer at least 30% European content
- Net neutrality rules affect how internet service providers can manage streaming traffic
Industry Consolidation and Evolving Consumer Behavior
- Potential for increased media industry consolidation through mergers and acquisitions
- Disney's acquisition of 21st Century Fox reshaped the streaming and traditional TV landscape
- Amazon's purchase of MGM Studios bolstered its content library for Prime Video
- Evolution of advertising models including more personalized interactive ads in both streaming and traditional TV
- Hulu offers interactive ad experiences where viewers can request more information or make purchases
- Addressable TV advertising allows for targeted ads during traditional TV broadcasts
- Changing consumer behaviors and preferences particularly among younger generations impact content creation and distribution strategies
- Rise of short-form video content (TikTok, YouTube Shorts) influences programming decisions
- Increased demand for diverse and inclusive content drives new production initiatives across platforms
Key Terms to Review (36)
Abc: abc is a major American television network that was established in 1948 and has played a significant role in shaping the landscape of broadcast television. The network is known for its diverse programming, including dramas, comedies, and reality shows, which have contributed to its popularity and profitability. abc's influence extends beyond traditional broadcasting, impacting the business models of major networks as they adapt to the changing media environment.
Ad-supported model: An ad-supported model is a business framework where content, typically in the form of television programming or streaming services, is offered to consumers for free or at a reduced cost in exchange for the inclusion of advertisements. This model generates revenue primarily from advertisers seeking to reach audiences, creating a dynamic interplay between content creation and advertising strategies.
Amazon Prime Video: Amazon Prime Video is a streaming service offered by Amazon that provides a wide array of movies, TV shows, and original content for its subscribers. It plays a significant role in the landscape of media consumption by producing exclusive programming and competing directly with traditional television networks and other streaming platforms.
AMC: AMC, or American Movie Classics, is a cable and satellite television channel that originally focused on classic films but has evolved to include original programming and a mix of genres, particularly drama and horror. Its transformation reflects broader trends in the entertainment industry, particularly the competition and collaboration between streaming services and traditional television networks.
Apple TV+: Apple TV+ is a subscription-based streaming service launched by Apple Inc. in November 2019, featuring original content including movies, documentaries, and series. It represents Apple's entry into the competitive streaming market, aiming to leverage its established ecosystem of devices and services to attract viewers and create a unique brand identity through high-quality storytelling.
BBC iPlayer: BBC iPlayer is a streaming service offered by the British Broadcasting Corporation (BBC), allowing users to watch live and on-demand television programs. It plays a crucial role in the landscape of media consumption, competing with other streaming platforms while also collaborating with traditional TV broadcasting to deliver content efficiently and effectively.
Binge-watching: Binge-watching refers to the practice of watching multiple episodes of a television show in one sitting, often facilitated by streaming platforms that allow for the seamless playback of episodes. This behavior has transformed viewing habits, leading to changes in how television is produced, distributed, and consumed across various platforms and formats.
BritBox: BritBox is a subscription-based streaming service that offers a wide range of British television content, including classic and current shows from the UK. Launched in 2017, it serves as a collaboration between the BBC and ITV, bringing together popular series, documentaries, and films in one accessible platform. Its emergence reflects the evolving landscape of media consumption and the competition between streaming services and traditional television networks.
CBS: CBS, short for Columbia Broadcasting System, is one of the major American television networks that emerged in the early 20th century. Known for its wide range of programming, CBS has played a pivotal role in shaping television's landscape, influencing both network business models and genre development while navigating the challenges posed by the rise of streaming services.
Cnn: CNN, or Cable News Network, is a major news channel that revolutionized television news broadcasting when it launched in 1980 as the first 24-hour news channel. It transformed how news is consumed, paving the way for the cable TV revolution by emphasizing live coverage and breaking news, which significantly influenced business models in the media landscape.
Co-production: Co-production refers to the collaborative effort between multiple production companies, networks, or platforms to create television content. This practice allows for shared resources, creative input, and wider distribution opportunities, effectively combining strengths from different entities to enhance the overall quality and reach of a program. In an era of both competition and collaboration between streaming services and traditional TV networks, co-production has become a strategic approach to leverage diverse audiences and meet rising production costs.
Comcast: Comcast is one of the largest telecommunications and media conglomerates in the world, primarily known for its cable television services, internet, and phone offerings. As a major player in the media landscape, Comcast has been involved in both competition and collaboration with streaming services and traditional TV networks, shaping the way audiences consume content.
Content licensing: Content licensing is the legal permission granted by the owner of intellectual property, such as films, television shows, or music, to another party to use that content under specified terms and conditions. This process allows various platforms and companies to distribute, broadcast, or stream content without owning it outright, creating a complex web of relationships between content creators, distributors, and consumers. The dynamics of content licensing play a significant role in shaping competition and collaboration between traditional and streaming television services, as well as influencing the shifting business models within the media industry.
Cord-cutting: Cord-cutting refers to the trend of viewers canceling their traditional cable or satellite TV subscriptions in favor of streaming services and other digital platforms. This shift is a response to changing consumer preferences for more flexible, on-demand viewing options and has significant implications for the television landscape, influencing how content is produced, distributed, and consumed.
Cultural Imperialism: Cultural imperialism refers to the phenomenon where a dominant culture imposes its values, beliefs, and practices onto other cultures, often through mass media and communication channels. This process can lead to the erosion of local cultures and identities as global media influences shape societal norms and consumer behaviors.
Digital disruption: Digital disruption refers to the transformation that occurs when new digital technologies and business models significantly alter the way industries operate, impacting traditional ways of delivering products and services. This phenomenon has particularly affected the television industry, where the rise of streaming platforms has changed viewer habits, revenue models, and the competitive landscape, leading to both challenges and opportunities for traditional TV networks.
Disney: Disney refers to The Walt Disney Company, a multinational entertainment and media conglomerate known for its iconic animated films, theme parks, and diverse media networks. Disney has played a major role in shaping the entertainment landscape, particularly in how traditional television interacts with the rise of streaming services, marking a shift in viewership and content distribution.
Disney+: Disney+ is a subscription-based streaming service launched by The Walt Disney Company that offers a vast library of content, including movies and TV shows from Disney, Pixar, Marvel, Star Wars, and National Geographic. It serves as a major player in the streaming industry, reshaping how audiences consume entertainment and impacting both the traditional television landscape and the business models that govern streaming services.
Espn: ESPN is a global sports media company that primarily broadcasts sports events, news, and related programming across multiple platforms. It was founded in 1979 and has become synonymous with sports broadcasting, featuring a wide array of niche programming tailored to diverse audiences while playing a significant role in the fragmentation of media consumption. ESPN's influence extends beyond traditional TV, as it navigates the evolving landscape of streaming services and competition with both traditional and new media platforms.
Fox: In the context of competition and collaboration between streaming and traditional TV, Fox refers to the American television network known for its wide array of programming, including scripted series, sports, and news. As one of the major traditional TV networks, Fox faces significant competition from streaming services, which have transformed viewing habits and the landscape of media consumption. The network has also explored partnerships with streaming platforms to adapt to changing audience preferences and maintain relevance in an increasingly digital world.
Fx: In the context of television, 'fx' refers to special effects, which are techniques used to create imagined events in a narrative that cannot be achieved by normal means. This encompasses both practical effects, like miniatures and puppetry, and digital effects, such as CGI. The rise of streaming services has influenced how fx are created and utilized, as these platforms often prioritize high production values to compete with traditional TV networks.
HBO Max: HBO Max is a subscription-based streaming service that combines content from HBO with a wider range of programming from WarnerMedia's extensive library. Launched in May 2020, it aims to compete directly with other streaming platforms by offering original series, movies, and a vast catalog of classic titles, which highlights the growing competition between streaming services and traditional television networks.
Hotstar: Hotstar is a subscription-based streaming platform that originated in India, known for offering a wide range of content including movies, TV shows, sports, and original programming. It emerged as a significant player in the competitive landscape of streaming services, directly challenging traditional television networks by providing on-demand content and live sports broadcasting.
Hulu: Hulu is a subscription-based streaming service that offers a wide variety of TV shows, movies, and original content. It has gained attention for its unique approach to content production, focusing on both licensed programming and creating exclusive original series that appeal to diverse audiences. This dual strategy positions Hulu at the forefront of the evolving media landscape, allowing it to compete with traditional TV networks and other streaming platforms while adapting to the changing business models in the entertainment industry.
Limited series: A limited series is a type of television programming that consists of a predetermined number of episodes, often focusing on a single narrative or story arc. Unlike traditional shows that may run for multiple seasons, limited series are designed to tell a complete story within their set episode count, usually spanning anywhere from a few to several episodes. This format allows for more concise storytelling and higher production values, often attracting top-tier talent both in front of and behind the camera.
Media convergence: Media convergence refers to the process through which previously distinct media forms, platforms, and industries merge or intersect, creating new ways for content to be produced, shared, and consumed. This phenomenon reshapes how audiences engage with media, blurring the lines between traditional and digital formats while fostering collaboration and innovation.
NBC: NBC, or the National Broadcasting Company, is one of the oldest and most prominent television networks in the United States, known for its significant influence on the development of broadcasting and entertainment. It was founded in 1926 and played a critical role in establishing the framework for major networks, shaping business models through advertising revenue and programming strategies. NBC has also been pivotal in the creation and evolution of various TV genres, while continuing to adapt to challenges from streaming services in recent years.
Netflix: Netflix is a streaming service that offers a wide variety of award-winning TV shows, movies, anime, documentaries, and more on thousands of internet-connected devices. It has significantly influenced the way people consume media and interact with television, as it combines digital convergence, multi-platform content delivery, and original content production in a competitive landscape.
Ratings: Ratings refer to the measurement of the popularity and viewership of television programs, typically expressed as a percentage of a specific audience within a defined demographic. These metrics are crucial for networks and advertisers as they help determine the success of a show, influence scheduling decisions, and guide advertising revenue strategies. Ratings have evolved significantly with the rise of digital platforms, audience fragmentation, and global markets, making it essential to understand how these factors impact viewership.
Streaming revolution: The streaming revolution refers to the significant shift in how audiences consume television content, primarily through online platforms that allow users to watch shows and movies on-demand. This transformation has changed the landscape of entertainment, altering viewing habits, production styles, and distribution methods, while challenging traditional television networks and reshaping major TV genres.
Subscription-based model: A subscription-based model is a business approach where customers pay a recurring fee to gain access to a service or product, typically on a monthly or annual basis. This model has become increasingly popular in the entertainment industry, especially with the rise of streaming services, allowing for consistent revenue streams and enhanced consumer engagement. It contrasts with traditional TV's ad-based revenue system, enabling platforms to invest in original content and personalization.
Traditional broadcasting: Traditional broadcasting refers to the distribution of audio and video content via electromagnetic waves, typically using radio and television frequencies. This method has been the standard for delivering entertainment, news, and information to audiences for decades and relies on scheduled programming and a one-to-many communication model. The rise of streaming services has introduced new dynamics, prompting both competition and collaboration with traditional broadcasting methods.
ViacomCBS: ViacomCBS is a global media and entertainment company formed through the merger of Viacom and CBS Corporation in 2019, which combines a vast array of television networks, film studios, and streaming services. The company plays a pivotal role in the ongoing competition and collaboration between traditional TV and streaming platforms, as it leverages its extensive content library and distribution channels to reach diverse audiences across multiple platforms.
Viewership metrics: Viewership metrics are quantitative measures used to evaluate the size and engagement of an audience for television programs. These metrics provide insights into how many people are watching a particular show, when they are watching, and how they interact with the content, which is crucial for understanding audience behavior and preferences. They play a vital role in the decision-making processes for programming, advertising, and international collaborations.
WarnerMedia: WarnerMedia is a global media and entertainment conglomerate, known for producing and distributing a wide array of content across various platforms including film, television, and streaming. Formed as a result of the merger between Warner Bros., HBO, and Turner Broadcasting, it plays a significant role in the competitive landscape of both traditional television and streaming services, especially with its flagship streaming service HBO Max.
YouTube TV: YouTube TV is a subscription-based streaming service that offers live television channels, allowing users to watch content in real-time across various devices. It combines traditional TV elements with the convenience of streaming, providing access to major networks and cable channels, as well as a cloud-based DVR feature for recording shows. This service represents a significant shift in how audiences consume television content, blurring the lines between traditional and digital media.