Navigating the Future of Storytelling & Monetization in the User-Centric Era
The media landscape is transforming in the aftermath of global disruptions like the pandemic and the Hollywood Strike. We find ourselves in the User-Centric Era (UCE), characterized by the creator economy and consumer-focused tailored experiences. This transition, examined through the lens of evolving audience preferences and distribution strategies, prompts a change in content consumption and monetization strategies to thrive in an era defined by user-centricity and innovation.
Last week, we talked about the shifting media landscape in our article ‘Escape the Content Chaos: Navigating the User-Centric Era!’. This week, we will focus on storytelling and monetization in this new era, based on the insights of our SXSW panel ‘New Media Experiences: The Future of Storytelling & Monetization’. Together with Eshap, Future Media Hubs organized a full day of official partner programming at SXSW 2024 called ‘Next Now: The Future of Media’.
In today's rapidly evolving media landscape, creators face the challenge of crafting unique content and exploring innovative economic models. The panel, New Media Experiences: The Future of Storytelling & Monetization, was presented by Amagi and moderated by Sten-Kristian Saluveer, CEO at Storytek Innovation & Venture Studios and Head of Cannes Next, with over 20 years of extensive experience in the audiovisual and content industry. He has a diverse background as a producer, innovation strategist, and content & technology entrepreneur. Our panel members were: Srinivasan KA, the co-founder of Amagi, a leading force in media technology SaaS driving transformation. Srini co-founded Impulsesoft, the worldwide leader in wireless audio. Linette Zaulich is a highly skilled sales director at ZDF Studios specializing in unscripted content. She started off her career as a Production Manager for the production companies k22film and Off the Fence, in Mainz, Germany. Lastly, David Freeman has served as a visionary and innovator across the constantly evolving Entertainment, Sports, Digital, and Media Landscape. Freeman is the Co-Head of the Digital Media department at the leading entertainment and sports agency Creative Artists Agency (CAA). Each panelist brought their insights, experience, and expertise, offering invaluable insights into the intersection of creativity, technology, and media.
Transitioning into the User-Centric Era: Challenges and Opportunities
Following the pandemic and the scriptwriters' strike, the media landscape has experienced significant changes, characterized by shifts and uncertainties. David Freeman predicts a continuation of this for the next 24 months. Evolving consumer habits among younger generations are pushing traditional media to consider the creator economy to remain relevant in this era of streamers. As we transition into the UCE, where programming is actively created and distributed through owned platforms rather than purchased, media entities like Germany’s ZDF Studios are challenged with the loss of exclusivity previously associated with premium content. The evolving demands for content deals from streamers and broadcasters indicate a shift away from the conventional B2B model toward a more direct B2C approach. To survive in this era, media must capitalize on the opportunity to self-publish content and adapt from long-term to short-term planning strategies.
This shift goes beyond content creation to distribution strategies, as content houses recognize the need to reach diverse audiences beyond third-party platforms. Disney's launch of its streaming platform Disney+ in 2019, reclaiming control over its content and later again licensing to multiple platforms like Netflix, is an example of this shift from exclusivity to diversification. Another notable trend in this landscape is the growth of Free Ad-Supported Streaming TV (FAST), as noted by Srinivasan KA. FAST is free pre-programmed linear content, supported by individually tailored advertisements and combining many. The success of FAST is measured through metrics such as monthly active users, the emergence of new channels, and the increasing revenue per hour. With the average revenue per user for large FAST platforms doubling in a short span, the future of FAST appears promising, marking its position as a significant player in the future media ecosystem. The emergence of FAST services poses both challenges and opportunities for media in this competitive environment. FAST caters to users' preferences for convenience and familiarity while also providing opportunities for content creators to reach broader audiences. Recognizable intellectual property (IP) and tailored channels play a significant role in capturing user attention amidst the sea of available content.
Meeting Users Where They Are: The Key to Retaining Audience Attention
There's a notable shift towards the consumption of older shows over new ones, driven by the overwhelming abundance of content choices. Consumers are gravitating towards familiar content due to fatigue from navigating content libraries and managing multiple subscriptions. This trend presents challenges for media companies to capture and retain audience attention in a landscape saturated with options. To address this, brands must establish a strong and recognizable identity that resonates with users' desire for familiarity. Understanding where users are and meeting them there, rather than expecting them to switch channels, is essential.
Another way to captivate the audience is by knowing what premium content means to them. Premium content is different for everyone, some might say Mr. Beast's events and others say productions by Netflix or F1. But one thing is clear, premium content within the UCE emphasizes engagement dynamics across platforms like TikTok and YouTube. From short-form content (such as short movie scenes on TikTok) to long-form episodes on streaming services like Netflix, the moving landscape of media consumption underscores the importance of strategic promotion for visibility in the FAST landscape. With consumers constantly changing platforms, understanding their entry points and consumption patterns becomes crucial for effective engagement. Collaborating with platforms and devices to create seamless experiences and anticipating shifts in consumer behaviour are key strategies for media companies aiming to thrive in this dynamic environment. Linette Zaulich brings attention to TikTok's role in facilitating community engagement with themes found in series. However, success doesn't always transfer across platforms, necessitating an understanding of platform algorithms and using similar platforms when looking to transfer trends. This will play an important role in the future when looking to pull younger audiences. Srinivasan on the other hand argues that it’s about storytelling in different ways according to the platform. In his point of view, quality stories will transcend boundaries no matter where the user can find them.
Predictions for the Future: The Rise of Small Transactions, FAST, Platform Fluidity, and AI
Getting to know your audience is something the media must do now in order to meet them where they are and offer them more valuable content. But how will this user-centric approach affect the future of storytelling formats and monetization?
During the evolving dynamics of monetization in the UCE, attention is drawn toward the challenge of capitalizing on offerings gaining traction, especially within the fast-paced and talent-driven space marked by numerous microtransactions. Notably, Srinivasan KA suggests a shift towards more small transactions as FAST services rise and storytelling formats evolve, indicating a corresponding evolution in monetization avenues. In this landscape, ads are skippable and most consumers will use this to their full benefit. Personalizing ads to be as relevant as possible to consumers is key, leading to an innovative growth strategy where advertising formats are seamlessly integrated into storytelling. This evolving landscape of monetization strategies highlights the need for adaptability and creativity in aligning revenue generation with shifting consumer behaviours and preferences.
The emphasis on platform fluidity is clear. Media should know the media landscape, its platforms, audiences, devices, and most importantly: the users’ entry point and where they go next. Apps in the current media landscape drive traffic out of apps to other platforms, like the TikTok to Netflix example. Linette Zaulich thus predicts the disappearance of apps and stresses the importance of knowing the landscape to make flawless transitions when moving over from one platform to another. Srinivan KA joins this prediction mentioning the importance of brand identity to be recognizable across platforms to create a more seamless transition between platforms. A good example of recognizable IP is the popular NBC series FRIENDS, which is easily recognized across platforms due to the recognizable characters, theme song, and branding.
During the panel conversation, David Freeman highlights AI integration in talent agencies and the importance of franchise models. AI is not yet on the level of creating the highest quality content, but it’s here and unlike trends such as XR, it is here to stay. AI tools offer countless opportunities to the media landscape, such as franchise models leveraging the capabilities of expanding IP such as story world. It is crucial to use AI as a tool and learn how to prompt as it will certainly be part of the future. Lastly, he emphasizes that immersive storytelling will grow with the increase of high-quality content available for immersive technologies such as the Apple Vision Pro.
Overall, the panel sees a future of media innovation, audience engagement, and strategic adaptation to emerging trends.
From Insight to Action: Embracing User-Centricity, FAST, and AI
In this exploration into the future of media, it is evident that adaptability and innovation are crucial for staying afloat in the ever-evolving landscape. The key takeaways are that we should emphasize the need for media companies to embrace user-centric approaches. Understanding who your audience is, what they want, where they are, and meeting them there is crucial. Additionally, capitalizing on emerging technologies like AI and navigating the landscape of FAST are essential strategies.
In the current UCE, where viewers increasingly favour older shows over newer ones due to the overwhelming array of content choices, the rise of FAST services brings promising solutions. Consumers seek familiarity in their content consumption journey, gravitating towards platforms that offer convenience and recognizable intellectual property (IP). As emphasized by Linette Zaulich, understanding users' preferences and meeting them where they are becomes crucial. This means creating tailored channels, and premium content, and leveraging engagement dynamics across platforms.
The future of storytelling and monetization lies in catering to shifting audience preferences while leveraging platforms and tools to create immersive experiences. For deeper insights, watch the full session of 'New Media Experiences: The Future of Storytelling & Monetization'.