In linear TV, inertia can no longer be the status quo. The industry is being forced to change and evolve. As digital offerings and internet-connected content become more popular among audiences, traditional broadcasters need to think long and hard about what the future looks like. How can they adapt to the breakneck pace of change and build better, smarter TV operations? How can they unlock more revenue as consumer preferences shift? In this piece by Srinivasan KA (pictured below), co-founder, Amagi Media Labs, KA explains why everything from advertising to infrastructure needs to be re-examined.

This year, I suspect that several bleeding-edge innovations that broadcasters have traditionally been resistant to will finally be embraced. Here are the three most likely:

1. AI and machine learning will see wider adoption among broadcasters

Soon, AI and machine learning will have a very visible impact on the entire broadcast ecosystem – from content creation to delivery. Today, the most labour-intensive jobs in broadcast depend on human experience, aspects like curating video clips or weaving ads throughout a programme. As AI and machine learning systems evolve, however, these jobs could be performed by machines instead, reducing costs and optimising efficiency. For example, in the near future, it may be possible to have a sports broadcast without any human intervention at all. The system could capture different camera angles, automatically create replays and session highlights, display scorecards by analysing events in live feed, and even insert ads. Machine learning can also personalise these experiences for specific audiences, improving user engagement and ROI overall – all without investing in manual resources.

However, a fully automated experience might still be a few years off, as the machine-learning systems graduate from processing simple tasks such as color code, black frame, and audio-level detection, to more complex tasks such as capturing the essence of human understanding of an event. This year, more broadcasters will turn to AI and machine learning for the former, not the latter. This is just the start, however, as the technology ramps up. In the next two to three years, AI and machine learning for more advanced processes is likely to see wider standardisation.

2. Broadcast operations will (finally) start moving to the cloud

As traditional TV subscriber numbers continue to fall, and TV ad revenue shrinks by 3%, broadcasters need to think about new strategies for optimising revenue. This means looking for more cost-effective methods to manage and deliver content. In 2018, this will likely mean replacing satellites for playout with the cloud on a large scale. Satellite infrastructure may be legacy technology for broadcasters; however the costs are simply unsustainable. And as more and more established broadcasters begin to launch overseas channels, costs for satellite investments are only going up. From CAPEX to OPEX, satellite infrastructure has proven to be a hindrance to remaining competitive in the broadcasting industry. This needs to change.

Srinivasan KA, Co-Founder, Amagi Media Labs

Luckily, however, cloud technology has emerged as a viable alternative to traditional satellite and fibre delivery. Like other markets where the cloud has reshaped technology needs, for broadcasters it will dramatically increase efficiency and bring down costs. For example, cloud technology can be used to air linear TV channels, bypassing satellite spend completely, if so desired. Cloud-powered playout also delivers greater transparency over channel operations with minimal cost. It can enable remote oversight and management of a channel without the expensive hardware or massive teams of personnel on the ground to manage them. This delivers a win-win for broadcasters across the board, helping them increase their channel’s scale and at a fraction of the cost.

3. Programmatic TV will finally see wider adoption.

In digital advertising, programmatic transactions have completely changed the way advertisers and inventory sellers work together. Brand safety challenges aside, programmatic has delivered broader efficiency and scale, while making ad placements smarter and more data-driven. For television broadcasters, unfortunately, the shift towards programmatic buying and selling has been a lot harder. While the technology exists, broadcasters have been slow to put their inventory in programmatic marketplaces, fearing lower costs compared to direct sales. And a lack of education around how buyers and sellers can use programmatic for TV inventory has also held back progress.

But that is likely to change this year. Candidly, programmatic’s benefits for advertisers are too significant to ignore any longer. In 2018, more brands will be seeking programmatic inventory in order to have more oversight, control, and intelligence around their buys. The data made available through programmatic transactions will deliver that for them. Advertisers will also want to make sure that data is increasingly driving ad decision-making on TV. Programmatic solves for that as well. Brands will push the programmatic television conversation forward in 2018 and broadcasters will be forced to follow.  

These three innovations have tremendous potential for broadcasters this year and beyond. The category is being forced to change. Consumer preferences are dragging us into the future. Adapt or else. And the smartest broadcasters are making the investments – from programmatic, to AI, to the cloud – necessary to get there.