The Tipping Point in Media

December 29, 2021

The Tipping Point in Media

December 29, 2021
25% of viewing behaviour in the Netherlands is on demand according to the latest analyses by SKO. Linear television will lose importance over time.

In the early part of the millennium, Canadian author Malcolm Gladwell wrote an interesting book about the Tipping Point. He argued how major social changes were preceded by small steps, which suddenly gain momentum. An interesting analytical thought that of course also applies to the media world.

Revolutionary changes have occurred many times in media. A good example is the decline of the large networks in the United States: these money-making machines were suddenly surpassed in the 90s by the many small cable channels. This development is beautifully documented in the classic book Three Blind Mice. The cable channels started small, but in this millennium grew beyond the big channels. A true turning point!

Another good example is the development of the advertising market in the recent decade. Television had already surpassed print at the beginning of this century, but in turn was gradually overtaken by digital. Google and Facebook grew fast and quickly caught up with television. The turning point was in the middle of the previous decade when digital overtook linear television. It caused a huge shift in the advertising landscape, where the digital players with their fantastic targeting capabilities became the preferred advertising medium.

The question is what the current situation is regarding consumer viewing behavior. It is clear that young people hardly watch linear television anymore. Many do not have a cable or satellite connection and turn to the internet for all video consumption. Video-on-demand and all sorts of other video snacks, especially on YouTube, are preferred. Instagram and Snapchat are in the spotlight. In addition, many 'elderly' people also see the benefits of VOD. Delayed viewing takes off, but with a little good will, it can still be classified as linear television. However, SVOD and AVOD are also increasingly preferred by this target group. Worldwide, the number of SVOD subscriptions will grow from 1.2 billion to 1.6 billion in the next 3 years. Linear television is also going well: the public broadcasters achieved good viewing results in the COVID disaster year 2020, and commercial broadcasters have one of their best years in 2021.

However, as mentioned above, it is undeniable that on demand is the future. 25% of viewing behaviour in the Netherlands is on demand according to the latest analyses by SKO. Linear television will lose importance over time. It is not for nothing that the RTL group came up with a new meaning for TV a number of years ago: RTL no longer sees TV as Television, but as Total Video. Interesting point remains when the Tipping Point will take place: when will video on demand become more important than linear television? Step by step VOD is gaining ground and it is only a question of time when it will overtake linear television. Many at the broadcasters think that this is still at some distance in the future. But for them the message could be tough: the Tipping Pont is already behind us!


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