Articles by: "Charlotte Ricca – Independent Media Reporter"

OTT disrupted cable television and film. Is the news next?

March 11, 2021 Charlotte Ricca – Independent Media Reporter

The decline of cable TV is not news. Ever since streaming services offered consumers entire seasons of their favorite shows – affordably, on demand, and ad free – cable has been losing subscribers.

The number of pay-TV households fell from its peak of 105 million in 2010, to approximately 77.6 million last year. And this number is predicted to drop to 63.4 million by 2024. Meanwhile, the numbers of subscribers to the largest U.S. streaming platforms went up 50% in 2019 from the previous year.

There is no doubt Covid-19 boosted streaming figures, as millions of viewers spent their lockdown binge-watching the latest Netflix recommendation. However, cable was in decline long before the pandemic, with new, younger audiences favoring a “buffet style” viewing experience. In fact, more than half of 18 to 29 year-olds who pay for a TV bundle say they stream more often than watch cable.

Broadcast news

What is really interesting, amidst all this change, is that cable news continues to make a killing. In January 2021 CNN recorded its highest viewing figures in its 40-year history, beating both Fox News and MSNBC in total viewers. However, Fox News remains the most-watched cable news network in the U.S. And it took in a whopping $12.3 bi l lion in 2020.

“The news environment of the past four years, with Trump in the White House, has given a life extension to cable news,” says Mosheh Oinounou, an Emmy award-winning journalist who went on to launch CBSN, and is now a consultant for media organizations. “More recently, Covid and major political events, such as the storming of the Capitol, have seen record revenue and record ratings for cable.”

On the flipside, news is under-represented in the booming premium OTT arena, particularly that of local markets. Given the habits and preference of younger audiences, it might be time to take another look at the local news.

Streaming news still a rarity

While news is still a rarity in the streaming space, things are starting to change. This month, ViacomCBS launched Paramount Plus, which will incorporate CBSN, as well as livestreams of local CBS affiliates. Fox Entertainment’s streaming service Tubi launched News on Tubi in October 2020. It recently added nearly 80 stations, with 24-hour live news feeds. Amazon Prime is also looking to get in on the news game, adding live and on-demand local news to Fire TV.

ViacomCBS already has a head start in streaming news, as CBSN was the first streaming news service to launch in the United States in 2014. And the company continues to make news part of its OTT strategy. Christy Tanner, EVP and GM at ViacomCBS, believes their “marriage of journalism and technology” differentiates them in the streaming wars.

“It baffles me that news is not a bigger part of streaming services. It’s such an incredible opportunity to reach a highly engaged audience,” says Tanner.

“News has been a really important driver of growth within CBS and now ViacomCBS. And that is the reason it is one of the three pillars of Paramount Plus. We know that news users are loyal. They come back frequently, and they stay for a long time. Now we are expanding on this knowledge to improve our news offering within our streaming services.”

However, creating live news, 24/7, is not without its challenges. There are issues around the nature of news content and the digital development resources required. This could be why few providers offer it as part of their streaming packages.

“Entertainment and news are very different,” says Tanner. “News is a real commitment. And you have to be prepared for what comes with that. Also, providers don’t see the financial opportunities they are missing. They see news as a loss leader or break-even proposition – but what we’ve done is proof.”

Oinounou agrees that some major streaming companies may be reluctant to “get too deep into news game” because of the constant need to feed the news monster with fresh content. “Media companies want evergreen content. But news is ephemeral, it’s only relevant for couple of hours, which is a real challenge,” he says.

Falling off a cliff

However, Oinounou is less convinced by the financial opportunities of streaming news, when compared to the figures cable news commands. Digital news revenue is largely ad-based while cable news relies on subscription and massive advertising income, both of which are hard to replicate online.

“There is revenue there, but not on the same scale as broadcast,” he states. “Streaming services need to ask how they can grow revenue in order to compensate for the cliff they are about to go off, in terms of cable subscriptions. We know that people will pay for sport and entertainment online. But it’s not yet been proven as a revenue source for news.

“We saw this evolution in print. News was free online. But then classified revenue fell through the floor and print subscriptions collapsed, so newspapers realized they had to start charging and put up a paywall.”

It’s only in recent years that news titles have started to generate significant subscription revenue. That said, these tend to be larger national titles or conglomerations of local news brands that have greater resources than most local brands.

However, the trend offers proof that people will pay for a quality product and a good digital experience. Therefore, it seems likely that broadcast news producers are heading in the same direction. But the question is, who goes first? Which company will be brave enough to put digital news behind a paywall?

Fox Nation is one example of how a news subscription model can work. They offer additional content on interesting topics with big names and personalities as a draw. WarnerMedia has also floated the idea of launching a similar streaming channel, with a CNN-based subscription service.

“OTT live streams need to do the same thing, by offering either exclusive content or access, which will add value and persuade customers to pay an extra fee,” says Oinounou. “They also need to make sure content is authentic to the platform. Consumers on new devices have different needs and digital news is more interactive. So content has to be adapted to the streaming space.”

A new business model

Along with great content, creating a successful streaming news channel is also about having the right technology to ensure it’s available on all platforms. This is something Tanner prides herself on. “CBSN’s strength is to enable the viewer to find our news wherever they are,” she says. “The channel is available on more than 20 devices, services and platforms.”

Oinounou agrees if news providers don’t move quickly to adapt to streaming technology and get on all new and emerging platforms “you are going to be left behind”.

Creating a good product is not just about attracting subscribers. It’s also about retaining them. And a key to reducing churn, is to reduce user fatigue and financial outgoings, which are often associated with too many streaming services. One solution is to bundle streaming content, in the same way as cable TV, where consumers pay one fee and have access to all the entertainment, sport, and news they want.

Bundling their own streaming services is a no-brainer for brands. However, given the proliferation of offerings on the market, partnering with other streaming companies could be the service consumers really want. We have already seen this happen with ViacomCBS, who partnered up with Apple TV+ last year.

“There is a lot of experimentation happening right now with all major companies trying to figure out a new business model for news,” said Oinounou. “But media executives are still focused on where the money is, and that’s not in digital.”

However, with the likes of Altice USA CEO Dexter Goei predicting the death of cable TV, the question is not “if” broadcast news will be streamed, it is a matter of how and when. What media executives need to focus on now, is how to make the new model match the traditional pay-TV bundle.

Media leaders reflect on managing remotely as they look to a hybrid future

February 4, 2021 Charlotte Ricca – Independent Media Reporter

Since Covid-19 closed offices everywhere, the workplace has changed beyond recognition. Home working currently accounts for than more than two-thirds of economic activity in the U.S. Now, about a year in, employees have settled into a routine of working from their bedroom, office, or kitchen. And managers have found new ways to communicate and engage with their staff.

With the pandemic normalizing remote work, the question is: Will we ever want to work in an office again? According to research, 55% of US workers want a mixture of home and office working. Liz Vaccariello, Editor-In-Chief of Real Simple at Meredith Corporation agrees that hybrid is the best option.

“All remote, all the time is not healthy, especially in media, where the creative process needs to happen in person,” says Vaccariello. “But as a creative lead, I don’t see the need for office hours to be Monday to Friday, nine to six. It’s just inefficient. Twice a week is good enough!”

Many businesses are considering this hybrid option and starting to think about a long- term model. So, what lessons have been learned during lockdown that we can take forward into this next phase? We spoke to industry experts at Complex Networks, Meredith Corporation, and The Financial Times to find out.

Communication pro tips

“The pandemic has put a focus on intentional and clear communication,” says Krystle Douglas, VP People & Culture at Complex Networks. “So, think about what it is you are saying, how you’re saying it, and how it’s received.”

While Slack is great for keeping in touch with your team and dealing with daily duties, you need to make sure you take the time to personally reach out to individual staff. “I’ve been checking in with everyone by calling them every two weeks,” says Vaccariello. “A phone call feels more intimate and it makes us feel more connected. This is even more true than when we were in an office together, where I was around, but not always available. Additionally, I personally mail each person a note about each issue, mentioning a story they worked on, or how they contributed.”

Surveys are also a great way to communicate, as the anonymity enables employees to freely express their opinions. The Financial Times (FT) regularly surveys their staff. Since lockdown Kirsty Devine, the company’s U.S. Head of HR & Global Project, says they have been targeting questions around well-being and working from home.

Be empathetic

According to Vaccariello good communication starts with empathy. “Managers need to empathize individually and thinkabout each member of their staff and what they need,” she explains. “For example, when dealing with my younger team members, I think about my 22-year-old self. I ask: How would I be feeling?”

Douglas agrees that empathy is key to ensuring people interpret messages the way you want them to be received. “We are all busy, but you have to pause and pay attention. Everyone is dealing with a lot right now, but not everyone is ok with sharing it,” she states. “It’s about being more thoughtful in how you reach out and connect with people.”

Empathy doesn’t come naturally to everyone. However, according to research, it can be taught. The FT provides training and coaching on how to supervise staff according to their situation.

“Empathic leadership has never been so important, but not all managers are used to it,” says Devine. “In the office you can read body language. But with people working remotely they need to ask questions about how people are doing and not just brush off the response, which some people are uncomfortable with.

EMPATHETIC LEADERSHIP TIPS

The mindfulness app Headspace offers the following advice for empathetic leadership:

Look: Check-in with your team and look for the unsaid. How are people’s energy levels?
Listen: Give your team space to be open and honest about how they feel, both mentally and physically.
Feel: Taking the time to acknowledge how someone else is feeling empowers us to respond with kindness.

Respond: In times of high stress, it’s easy to let frustrations get in the way of skilful communication. Pause and give yourself space to respond in a kind way.

Flexible hours and expectations

With empathy comes an understanding of how people choose to manage their working day. This can be particularly important if they have other responsibilities, such as home schooling.

“Nine to five is out the door,” states Vaccariello. “Working during this pandemic is just about getting work done when you can.” You have to trust your staff to get their work done, at a time that fits in with their home life.

Giving them more autonomy, rather than constantly checking they are online, will cultivate a culture of trust, respect and ultimately hard work. “The work will speak for itself,” says Vaccariello. “If a team member can get their work done in five hours, good for them!”

Less can be more

The downside of flexible working is finding the “off button” at the end of the day. “The commute served as the emotional shoulder of the day,” explains Vaccariello. “You would read the paper on the way in to prepare for the day, and a novel on the way home to switch off. But now we have no practical or emotional boundaries. So, we work longer hours.

“Meredith may get more [time] out of us, but I don’t see it as a benefit. I want employees with a healthy work-life balance. if they spend 12 hours a day looking at a screen they are going to burn out, and that’s not good for business.”

It’s up to management to supervise their staff and ensure they aren’t working all hours. Real Simple has a “no meeting” policy on Fridays, so people can set their own hours and focus on creativity. Complex Network has Mental Health Friday, where the office is closed every other Friday.

Monitor mental health

It’s also up to management to keep any eye on their team and watch for signs of mental health problems. Of particular concern are employees who live alone because work is their main source of interaction. Research by TotalJobs found that 46% of U.K. workers have experienced loneliness during lockdown.

There are a number of things you can do to support staff, from offering virtual therapy sessions, to providing in-house mentors. The FT already had a network of employees with mental health training in place. Devine says they have been a great source of support during lockdown. The newspaper also offers an employee assistance program (EAP), which provides independent, confidential counseling and support 24/7. Plus, they offer to pay 50% of a Headspace subscription.

“Since lockdown we have also introduced five wellness days, which are paid days where staff can take a break to get their head together,” says Devine. “And we provide resilience training on how to manage yourself in a remote environment.”

Team building

No matter how much support you offer, nothing can replace the bonding and benefits of sharing office space. “Journalists in the newsroom are itching to get back to office. They miss those moments of serendipity, when they are working on a story and bouncing ideas between desks,” says Devine.

Without those watercooler moments, Vaccariello says you need to find new ways to kickstart a conversation for your teams – especially with new staff members. “We can’t grab a beer or have a welcome bagel party. So, to make new staff feel part of the team we play games on Webex. Or we go around and have everyone say something about themselves, such as a book they’ve recently read.”

Complex Networks has a similar system, set up by Douglas, called Complex Coffee Talks, where different staff members talk about their professional and personal lives. “I wanted to find a way to keep morale high, but also provide a learning experience, so that all employees understand what everyone else is doing,” Douglas says. “Because understanding is the route to empathy, which builds a stronger, happier workforce.”

While Covid has caused chaos around the globe, there is no doubt that some positives have come out of the pandemic. Workplace flexibility is one of them. It can increase productivity, decrease stressful commutes and save money on office space and travel expenses. But the key to successful remote working is good management and consistent support.

“It’s all about empathy, communication and understanding,” says Douglas. “You need to be in tune with your team, so listen and pay attention.”

Text-to-speech is the audio opportunity no one’s talking about

November 5, 2020 Charlotte Ricca – Independent Media Reporter

Audio articles are making quite a noise in publishing. Podcasting may be hogging the headlines. But creating features and news that your audience can listen to is an audio opportunity that should not be ignored.

While offering articles in an audible format is nothing new, this type of content is currently enjoying a massive boom, as time-strapped audiences look for convenient ways to consume online media.

A boom

In the U.S. alone, spoken word’s share of audio listening has increased 30% over the last six years and 8% in the last year alone. And when multi Pulitzer Prize-winning titles jump on-board, you know that audio content is a serious business. In July, The Washington Post announced plans to make audio versions of all of its articles. And a few months earlier, the New York Times acquired Audm, a platform that turns longform journalism into audio content.

Other big brands using Audm’s audio services include The Atlantic, BuzzFeed, Wired, and Rolling Stone. Similar platforms Curio and Noa – which are based in the UK and Ireland respectively – have signed up the likes of the Financial Times, The Telegraph, The Economist, and The Guardian.

What’s even more interesting is that listener numbers have risen since Covid-19. In fact, 75% of the U.S. population has listened to spoken word audio in the past month.

The Washington Post began testing text-to-speech capabilities on its Android app in early 2020, assuming the feature would appeal to readers on their daily commute. But Leila Siddique, senior product manager, said they have been surprised to see steady adoption rates, despite people working from home.

“What we’ve learned from users is that they listen to the news while doing other things. And they are consuming far more content than they would normally,” she says.

It’s not just the U.S. that has seen a boom in audio articles during the pandemic. England’s The Economist has offered audio editions of its weekly magazine since 2007. However, according deputy editor Tom Standage they are currently enjoying “record numbers of streams/downloads and unique listeners.”

Engagement

Listener figures are still way below the numbers of people who read text online, with the New York Times enjoying in excess of five million subscribers across its print and digital content. However, audio content isn’t just about numbers, it’s about audience engagement.

Reading takes time and focus – which is in short supply with modern audiences. According to Chartbeat, even the top stories only engage readers for around two-and-a-half minutes, while 45% of readers leave within 15 seconds. In contrast, Noa cites an 84% average completion rate for stories

“Completion rates are higher because people are generally busy doing other things while listening. So, it’s less convenient to switch away from something,” says Standage.

Basic value

Despite the fact that these platforms use professional narrators, audio content is still fairly simplistic compared to podcasts, which often require dramatic story-telling and high production values. The key to audio articles’ success is convenience – and quality journalism.

“We know that readers are time-pressed and feel guilty that they have not read enough of a given week’s edition before the next one arrives,” says Standage. “Offering audio content sends the message: we know you are busy and are willing to pay for high-quality information. So, here’s a handy feature that will help you ensure that you get value from our journalism.”

Publishers, in turn, get more value from their audience. While The Economist hasn’t shared numbers for the performance of their audio content, Standage says figures suggests the audio edition is an effective retention tool. “Once you come to rely on it, you won’t unsubscribe.”

The Washington Post’s managing editor Kat Downs Mulder agrees the convenience of audio is a “huge benefit” to both their subscribers and their subscription numbers.

“We know people love listening to news – our podcasts show that,” she comments. “Opening up more audio content and making it easier for them engage with The Post helps draw them into our ecosystem even further. That improves retention rates.”

Offer more

Interestingly, while most publishers create a limited number of long-form, analytical audio articles, The Post is using the text-to-speech features on Android and iOS to offer audio versions of all its articles. The 143-year-old paper has been experimenting with audio since 2017. However, Downs Mulder explains that they decided to offer automated storytelling across all its content.

“We are excited about the habit-forming nature of audio. But it’s

hard to build those habits if you only offer a limited number of articles,” she says. “Our readers know they always have an audio option, across all articles, which really reinforces its availability.”

Feedback from users is positive so far. Downs Mulder says subscribers who listen to audio articles spend three times as much time in Post apps.

Niche and personal

It’s not just the big brands getting onboard. Audio is a great way for niche brands to engage with their audience and create loyalty. Danish startup, Zetland, launched its audio model in early 2017 and has since grown an incredible 650%.

Just like The Post, all Zetland articles are available as audio. However, they only produce about three longform articles a day. This means they can offer a far more personalized audio experience, with each article read out by the journalist that wrote it.

“The personal voice of the journalists is quite important to the success of our audio products,” explains Zetland CEO, Tav Klitgaard. “We originally tried using professional voice actors, but it sounded too perfect. We like to build what we call a ‘human product’, including all the glitches and quirks of human beings. It is important for us that our content conveys honest passion and curiosity, and we’ve found that to be done best when the journalist narrates.”

This personalized approach certainly seems to be working. They now have more than 18,500 paid members, whose consumer habits are around 75% audio. What’s more, engagement levels are impressive, with close to a 90% listen-through rate.

“We’ve learned that once we get people to hit play on that first piece of content, chances are they listen to the end,” says Klitgaard. “They also have a higher usage frequency and subsequently membership retention, than those who do not listen.”

Audience appeal

In addition to increased retention, audio is also a great way to reach out to new audiences, as it is traditionally consumed by a younger demographic. According to Klitgaard, more than 30% of their paying members are under age 30. And The Post says their audio audience is “generally younger” than their average reader.

As with all content, creating a successful audio model is all about knowing your audience. You need to recognize their needs and match the user experience accordingly. Whether that’s long-form analytical content, or easy-to-access daily news, audio is proving to be a highly effective way to engage, retain and attract audiences.

“Audio isn’t about changing user habits, it’s about embracing their habits,” states Downs Mulder. “Our goal is to convert causal listeners into dedicated listeners, by opening them up to getting news from us in other ways. And audio is proving to have an enormous importance to the news-interested public.”