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Articles by: "Rande Price, Research VP – DCN"

Industry-Research | Policy

AI developers favor premium media content for training

As large language models (LLMs) evolve from experimental tools to valuable assets, transparency in their data sourcing is rapidly declining. Initially, datasets were openly shared, allowing the public to examine the content used for training. However, LLM companies tightly guard their data sources today, leading to new intellectual property (IP) conflicts. Many media companies are pursuing litigation to protect their content from unauthorized use in AI training. At the same time, courts, regulators, and policymakers are engaged in debates over content ownership and the responsibilities of large language model (LLM) developers.

A new report by George Wukoson, Ziff Davis’ lead AI attorney, and Joey Fortuna, the company’s chief technology officer, sheds light on the nature of data sources used by major LLMs. Their research reveals that AI developers often favor high-quality content when selecting training data, especially content owned by premium media companies. Their findings support discussions around publishers’ IP rights, content licensing, and the ethical dimensions of AI development.

Dataset analysis and key findings

Wukoson and Fortuna’s research uses Domain Authority (DA), a metric developed by Moz for search engine optimization, to measure the prominence of domains in several LLM training datasets. They examine Common Crawl, C4, OpenWebText, and OpenWebText2, and analyze how curation levels affect the inclusion of content from high-DA, premium sources.

Their findings showed that as datasets become more curated, the share of content from high-quality publishers rises significantly. Key findings from the research:

1. Increasing inclusion of premium content

In less curated datasets like Common Crawl, content from major media companies only makes up about 0.44%. However, in OpenWebText2, a highly curated dataset, content from these companies jumps to 12.04%. This shift indicates that LLM developers selectively incorporate reputable sources to improve the quality and accuracy of the model’s output.

2. Higher DA correlates with higher curation levels

    Common Crawl, an uncurated dataset, has over 50% of domains with DA scores below 10, indicating that it includes a significant amount of low-authority content. In contrast, OpenWebText2 comprises 39.4% of domains with DA scores between 90 and 100, reflecting a preference for high-authority, reliable sources as datasets undergo curation.

    3. Prominence of premium content

      Leading publishers like The New York Times and News Corp consistently appear in the top DA range (90–100), reflecting their high authority in the dataset rankings. Their dominance in these datasets suggests that LLMs are more frequently training on established news and media sources. This gives these outlets a stronger influence in shaping model behavior and responses.

      These trends show a pattern where the curation of training datasets systematically filters out lower-quality sources, favoring reputable, high-DA domains. As a result, LLMs benefit from exposure to high-quality, well-sourced content, which may enhance their performance but raise concerns about IP use and representation.

      Prioritizing high-quality, high-DA content in LLM datasets escalates legal disputes between media companies and AI firms. For example, the New York Times has filed a copyright infringement suit against major AI developers. They argue that these AI companies profit from high-quality content without appropriate compensation to the original publishers.

      As LLMs continue transforming industries, the value of high-quality, curated content becomes increasingly apparent. The authors’ analysis shows that curation prioritizes content from high-DA, reputable media content companies, amplifying their role in shaping model outcomes. This trend will likely intensify as LLM companies refine their training methodologies, sparking further debate over intellectual property and AI firms’ financial obligations to content creators. The findings here call for a broader dialogue around data licensing and compensation frameworks that reflect the mutual value between content creators and AI innovators.

      Industry-Research | Video

      In a fragmented video landscape, viewers start online

      Today’s vast television ecosystem combines streaming services, traditional pay-TV, and free ad-supported platforms, reflecting a sea change in how viewers find and consume video content. The scales are tipping in favor of online sources their first stop when seeking out video content. Over two-thirds (67%) of respondents report they turn to an online source first when they want to watch TV. Only 26% default to a traditional MVPD (Multichannel Video Programming Distributor) set-top box. Hub Entertainment Research’s new report, Decoding the Default, highlights an increasingly fragmented ecosystem where viewers lean more toward online platforms than ever.

      From traditional TV to streaming

      As cord-cutting and “cord-never” populations continue to grow, the number of viewers who rely solely on traditional pay-TV services is dwindling. According to Hub’s findings, more than twice as many viewers use both traditional pay-TV and streaming platforms rather than just one type. Audiences find that streaming platforms offer more options and flexibility than traditional TV. Deloitte’s Digital Media Trends report echoes this, noting that many consumers find streaming services more aligned with their viewing needs. They prioritize content that matches their schedules rather than set broadcast times.

      Viewers’ SVOD stack

      Viewers’ video-on-demand (SVOD) “stacks” are getting larger, with many people subscribing to at least three different services. The report shows that the percentage of consumers using three or more SVODs more than doubled since 2020, illustrating the growth of multi-platform use. This expansion is partially due to the massive libraries each SVOD offers; for instance, Netflix, Hulu, and Disney+ have extensive catalogs covering different genres and audience segments.

      Yet, while viewers may stack multiple services, only a few platforms become their “default.” Netflix leads this default category, with 26% of respondents choosing it first. This trend toward Netflix as the initial go-to aligns with its status as a pioneering platform with an established reputation for both quantity and quality of content. Hulu and Amazon Prime Video follow while Disney+ and Max (formerly HBO Max) fall slightly behind.

      Online streaming is the new “home base”

      Hub’s findings underscore that, for most viewers, the default experience of “turning on the TV” starts with online streaming. About one-third of viewers say they now go directly to a built-in smart TV app, showing a 50% increase in usage since 2021.

      The appeal of smart TV apps lies in their convenience. They provide immediate access to various streaming platforms without additional hardware. The transition to smart TV apps represents a natural evolution of how viewers experience TV.

      Research from the Leichtman Research aligns with this trend, finding that 87% of U.S. households own a device connecting their TV to the internet, from smart TVs to streaming media players. This widespread connectivity facilitates using apps like Netflix, Hulu, and Prime Video, solidifying them as the primary sources of TV content.

      SVOD loyalty driven by “favorite shows”

      Hub’s report highlights a crucial driver of platform loyalty—exclusive content. When viewers have a specific favorite show exclusive to a particular SVOD, they’re more likely to remain loyal to that platform. This “stickiness” effect is essential in a crowded market where content variety can make or break viewer retention.

      On the other hand, traditional MVPDs still hold an edge on live TV, particularly for sports and news. These content categories remain strongholds for pay-TV providers, appealing to a demographic that values real-time events. However, this loyalty is eroding. The report notes that nearly a quarter of MVPD users would consider canceling their service if forced to choose between platforms.

      The growth of FAST

      FAST services are also becoming a mainstay for many viewers, especially those who prioritize content variety over exclusivity. FAST platforms appeal to cost-conscious consumers who prefer a broad selection of programming without additional monthly costs. Their rise complements subscription streaming by offering a fallback for when paid services are unavailable or too costly.

      FAST providers such as Pluto TV and Tubi are gaining traction as they offer a unique blend of on-demand and live content with a more traditional TV-like feel. According to a survey from eMarketer, over half of U.S. adults now use FAST services. For these viewers, the trade-off of ads in exchange for free content is more appealing than paying for an additional SVOD, further underscoring the complexity of the modern TV ecosystem.

      Will MVPDs adapt?

      The rapid decline of MVPD set-top boxes poses an existential challenge to pay-TV providers, who now face pressure to innovate or risk further market loss. Some MVPDs are pivoting to streaming bundles or hybrid solutions to capture traditional and digital audiences. However, Hub’s report suggests these changes may be too late. As smart TV apps and streaming services become the “default” choice for viewing, MVPDs could be relegated to a niche role unless they compete with streaming platforms on convenience, affordability, and exclusive content.

      As more people rely on streaming services and smart TVs, the influence of traditional MVPDs is waning. Netflix’s leading SVOD “default” position reflects its early mover advantage and vast content library. Meanwhile, traditional TV’s staples—live news and sports—feel less essential as viewers increasingly favor on-demand content.

      Industry-Research

      It’s time to connect journalism research with media professionals

      A great deal of research on journalism and the news and media industry is being undertaken by academics. However, most journalists have limited exposure to this work and few academics undertake their research directly with journalists. This has created a gap between the study of journalism and the practice of journalism. In the challenging economic climate for the media, the industry could certainly benefit from increased knowledge on how journalism should be practiced and produced today.

      Bridging the divide between journalism research and practice requires understanding both fields’ unique challenges. Journalism research uncovers critical insights into news coverage. For example: how it can reinforce racial stereotypes, misrepresent facts on climate change, or build public trust through transparency. Research alone cannot solve these issues. However, it offers evidence-based support to news organizations, providing a better foundation than relying on tradition or instinct. The American Press Institute and Journalism Bridging Project’s new white paper, The Research-Practice Gap in Journalism, explores this issue in the U.S. and suggests strategies on how to bridge it.

      Identifying barriers between researchers and media professionals

      Academic findings rarely reach journalists in ways that encourage actionable change. This is largely because the priorities of academia and the news industry differ. This disconnect leads to tensions as journalists see researchers detached from newsroom realities. Academic journals do not typically prioritize practical applications. Findings are also often locked behind expensive paywalls, making them inaccessible to journalists.

      The slow pace of academic publishing further complicates things, with research often needing to be updated by the time it becomes available. Despite these challenges, efforts are underway to bridge the gap. Some researchers are collaborating with newsrooms to help journalists adopt audience engagement strategies, and institutions like the Center for Media Engagement are working to make research publicly accessible.

      Understanding the divide between journalism research and practice is key to addressing it. Both fields are committed to supporting democracy through a strong, independent press, but their incentive structures differ greatly. Newsrooms need research that addresses immediate challenges, such as rebuilding public trust or sustaining business models. Academia, meanwhile, values long-term exploration of theoretical issues, which can lead to research that feels disconnected from journalism’s day-to-day needs.

      Bridging the gap between journalism research and journalists

      Connecting journalism research with practice is a complex challenge, but conversations with journalists and academics reveal several strategies to address this divide. Some initiatives can be implemented more easily at the smaller end of the spectrum. For instance, better engagement between newsrooms and researchers could begin with simple outreach efforts. Journalists can inform scholars about their ongoing projects, and researchers can take the initiative to translate their findings into accessible, practical language for journalists.

      The report suggests that conferences also provide a platform for bridging this gap. While journalists and researchers attend conferences, they often participate in different ones. Encouraging both groups to attend interdisciplinary events like South by Southwest or practitioner-focused gatherings like the Online News Association could foster meaningful connections. Panels that mix scholars and practitioners, as well as workshops and networking opportunities, offer fertile ground for collaboration.

      Another key idea is producing different research outputs for different audiences. For example, the Center for Innovation and Sustainability in Local Media produces traditional research and more journalistic pieces highlighting real-world stories. This dual-output approach can help researchers make an impact more quickly, ensuring their findings are accessible to journalists before the news cycle moves on.

      The academic connection to real world journalism

      Solution-oriented research, such as case studies highlighting successful strategies used by news organizations, can also provide models for others to follow and inspire confidence in the practical application of academic work. The academic structure itself should encourage practical, real-world research. Tenure and promotion policies should reflect the value of public scholarship and engagement with newsrooms, focus more on practical implications, and make research sections, such as recommendations, open access to ensure they reach a wider audience.

      Journalism education also plays a critical role. Journalism schools can better integrate research skills with practical training, helping students understand how to apply evidence-based insights to real-world reporting.

      Funding is also essential to support initiatives like these. Independent funding allows researchers to prioritize mutual goals in their partnerships with newsrooms, while newsrooms receive compensation for the time they invest in collaborating with researchers.

      Closing this divide requires better communication, stronger relationships, and more accessible research. Journalism support organizations, funders, universities, and newsrooms must work together to bridge the gap, improving the quality of journalism and supporting informed decision-making. With greater collaboration and shared commitment, journalism research and practice can overcome their divide, benefiting the news industry and the public it serves.

      Industry-Research

      Journalists are burning out. Media leaders can help

      High stakes, constant deadlines, and unrelenting pressure are among the qualities that have long defined journalism. The economic pressures faced by the industry have intensified these issues. Unfortunately, burnout is a pressing issue among journalists that affects the industry as a whole. This year alone, more than half of journalists report they think of quitting due to burnout. Alarmingly, 40% of journalists report leaving their previous job because of burnout, underscoring how deeply it affects retention. Muck Rack surveyed nearly 1,800 journalists about their stress levels, burnout, vacation habits, and salary to explore how journalists navigate this career path. The report offers an eye-opening glimpse into the realities of the profession and highlights the challenges journalists face. It also explores potential pathways media companies can take to help create a better balance.

      High-stress levels, workload, and the “always-on” dilemma

      Journalists report some of the highest stress levels among professionals. On a scale of 1 to 10, with 10 being the most stressful, most journalists rated themselves at a 7. Only 20% of respondents described their stress levels below the midpoint, while 67% placed them above it. Several factors drive persistent tension, including a demanding workload and inadequate pay. They also emphasized the impact of modern media’s pervasive “always-on” culture. In other words, primary stressors contributing to burnout are overwhelming workloads, insufficient salaries, and the expectation of constant availability.

      The workload for journalists is a significant contributor to their stress. The data reveals that most journalists work on more than four stories simultaneously, with a considerable number handling seven or more projects at once. Managing multiple stories demands high levels of organization and focus, leaving little room for rest or downtime.

      The expectation of being “always on” compounds stress levels. Ninety-six percent of journalists report difficulty switching off after work, and about 64% work more than 40 hours weekly. Of these, 13% work over 51 hours weekly. Even when journalists aren’t officially on the clock, the nature of the job often pulls them back in—80% of journalists work outside regular business hours at least once a week.

      With heavy workloads and constant pressure, it’s no surprise that many journalists find it difficult to take time off. The most common reasons for skipping vacations include overwhelming workloads, staffing shortages, and the expectation to remain connected.

      Even when journalists manage to schedule vacation time, their ability to disconnect is limited. Nearly 70% of respondents said their vacations were interrupted by work. Fewer than one in three say they are able to keep work completely at bay while on paid time off (PTO).

      Work environment

      The working environment can significantly impact stress levels and overall work-life balance. Journalists are fairly split in their preferences for work arrangements, with many seeking hybrid or fully remote options. Over half of respondents reported that their current work setup positively contributes to their work-life balance. However, a considerable number expressed dissatisfaction with their current arrangements, indicating that improvements in flexibility could help ease stress.

      Mental health is another critical aspect of balancing a demanding career with personal well-being. However, fewer than a quarter of journalists have access to mental health services at work. This lack of support is concerning, especially considering the field’s high-stress levels and burnout. While about half of the journalists we surveyed believe they would receive support from their coworkers during mental health struggles, only 42% expect the same from workplace leadership.

      The salary gap

      The financial realities of journalism also weigh heavily on the work-life balance of professionals. The typical salary for journalists is $67,000, though this figure varies significantly between freelancers and full-time staff. Freelancers, on average, earn $60,000, while non-freelancers earn about $70,000. Over a quarter of freelancers earn less than $40,000 annually, while none earn more than $250,000.

      Journalists are the heart of the media business. Without their work, there is no content, no news, and, ultimately, no business model to sustain the industry. They generate stories that inform, educate, and engage audiences, providing the core product that media companies rely on. Yet, despite their essential role, journalists face mounting challenges threatening their ability to continue in the profession. The high stress, relentless deadlines, and mental health strains highlighted in this report are not just personal issues but systemic ones that risk undermining the very foundation of the media industry. If journalists cannot balance their workloads and personal well-being, the ripple effects will inevitably impact content quality and the media business’s sustainability.

      To effectively support journalists and safeguard their well-being, media organizations must prioritize the establishment of clear boundaries for after-hours work. They should also create dedicated “focus hours” that are free from unnecessary disruptions. Encouraging uninterrupted paid time off (PTO) is equally crucial, allowing journalists to fully  recharge without the looming pressure of work.

      Beyond these structural changes, fostering a culture rooted in empathy, open communication, and peer support can cultivate a healthier, more collaborative environment. By embracing these strategies, media companies will lessen the possibility of burnout. They will also help also ensure that journalists remain resilient, creative, and engage, which will help preserving the integrity and sustainability of the industry.

      Industry-Research | Video

      Podcasting reshapes audience engagement and brand connections

      The evolution of the podcast industry is nothing short of remarkable. Once a niche hobby, podcasting has become a mainstay format in the media landscape, driving entertainment, engagement, and brand connection. Creators are critical to this thriving ecosystem, crafting compelling stories that have done nothing less than revolutionize modern media. The Podcast Trends Report delves into five significant trends in the podcasting world, all viewed through the lens of the creators, which highlights opportunities in this dynamic medium.

      Many creators are capitalizing on the podcast opportunity. These creators aren’t just hosting shows; they’re cultivating networks of content that engage listeners across devices and formats. From true crime investigations to heartwarming advice, diverse topics have allowed podcasters to build dedicated fandoms who consume their content religiously. In fact, over half of podcast listeners say they can’t get enough of their favorite shows. To meet this insatiable demand, creators are expanding into new formats like video podcasts, giving audiences a multimedia experience that enhances traditional audio storytelling.

      For creators, this expansion means more than just increased visibility. It’s about crafting a holistic entertainment ecosystem that keeps listeners engaged across multiple platforms, allowing for a deeper connection between creators and their audiences. Networks like Team Coco, led by Conan O’Brien, have leveraged their star power to expand into YouTube, video sponsorships, and social media campaigns, proving that podcasts are more than just a “side gig”—they’re the center of today’s media universe.

      A media mainstay

      Podcasts have evolved beyond being an optional addition to media plans. They effectively drive full-funnel results, provide incremental reach, and create real brand impact. With advancements in advertising technology, brands are tapping into the power of podcasts more than ever. The reach of podcasts extends far beyond audio, with over 13 million monthly listeners consuming audio and video content. This cross-format potential has positioned podcasts as a vital tool in modern media strategies.

      Brands like Kia have recognized this potential, utilizing podcasts in campaigns across multiple platforms, from host-read ads on popular shows to video content on YouTube and social media. Such campaigns demonstrate the versatility of podcasts and their ability to serve as a dynamic, multi-channel touchpoint for brands seeking to reach an engaged, loyal audience.

      Growth of video podcasts

      While audio remains the core of podcasting, video podcasts are quickly gaining momentum. For creators, video presents an opportunity to expand their content’s reach, tapping into audiences on platforms like YouTube. For advertisers, video podcasts offer a new avenue for creative ad placements incorporating visuals, making capturing attention and driving engagement easier. The growth of video podcasts is still in its early stages, but the upside is clear: fans are willing to follow their favorite shows across mediums, and brands that embrace this format stand to gain.

      Creators who pivot into video extend their brand’s footprint and foster deeper connections with their audience. Video enables fans to engage with the content in a new, more immersive way, blending the intimacy of audio with the visual appeal that drives platforms like YouTube. This format is becoming a vital pillar of the podcasting world, creating fresh opportunities for brands and creators alike.

      Bridging cultural gaps

      One of podcasting’s greatest strengths is its ability to bridge cultural gaps. Listeners come to podcasts seeking authentic voices and real conversations that resonate with their identities and experiences. According to our data, 58% of multicultural podcast listeners say podcasts allow them to hear from diverse creators, and nearly 30% are more likely to tune in to connect with their culture or community.

      Investing in diverse creators allows advertisers to reach new audiences and foster trust and loyalty. Brands that partner with podcasts focusing on culturally relevant topics or collaborate with creators from diverse backgrounds are well-positioned to make a lasting impact. For instance, our “Diverse Voices” collection provides a platform for underrepresented podcasters, offering brands a way to tap into this growing market.

      Binge-worthy content becomes a podcasting trend

      Binge culture is dominating TV and streaming platforms and is now becoming a podcasting trend. Creators are releasing seasonal drops and limited series to encourage listeners to consume multiple episodes back-to-back. This trend is transforming how podcast content is structured and consumed. Nearly two-thirds of podcast listeners report bingeing multiple episodes in a single session, indicating that podcasting adapts to audience preferences for serialized, binge-able content.

      This format also presents exciting opportunities for brands. Seasonal podcasts or limited series allow for continuous engagement, with brands sponsoring entire seasons or crafting storylines that extend across multiple episodes. This gives listeners a richer, more integrated experience while amplifying brand visibility.

      Creators will fuel the future of podcasting with their creativity and passion. From expanding into video to telling binge-worthy stories, podcasters are breaking new ground and opening new opportunities for brands and audiences. As the medium continues to grow and evolve, brands that invest in podcasts—and the diverse voices behind them—will be well-positioned to tap into one of the younger audiences.

      Industry-Research

      Newsrooms should consider collaborating with content creators

      The shifting dynamics of the digital news industry are reshaping how outlets connect with audiences, and the definition of “journalist” is changing. Influencers on platforms like TikTok and YouTube successfully engage audiences in ways that traditional newsrooms sometimes struggle to achieve. As media consumption habits shift, the creator community offers a valuable vehicle for traditional news organizations.

      By collaborating with influential creators, news outlets can access new, often younger, audiences they might overlook. Evolving its newsroom strategies, the Baltimore Banner surpassed subscription goals and expanded its newsroom to 80 staff members. Similarly, the 133-year-old Seattle Times reached record circulation levels, reflecting a broader trend of local and nonprofit outlets successfully adapting to new challenges.

      The Poynter Institute’s new report highlights these trends. It identifies how the journalism industry increasingly relies on innovative strategies to adapt, with content creators and influencers playing a critical role in this transformation. While traditional news organizations face ongoing disruptions, this report shows that the demand for credible news remains strong.

      Evolving newsroom

      Poynter sees the rise of digital content creators, influencers, and the “creator economy” as an opportunity to redefine journalism. Rather than viewing them as purely competition for attention, traditional news organizations can collaborate with a new generation of content creators who bring fresh perspectives and innovative formats.

      Social media influencers often cover viral stories, reaching those who get their news primarily from platforms like TikTok or Instagram Reels. Working with content creators can help newsrooms diversify their storytelling formats and engage with younger, digitally savvy audiences. Journalists and creators both serve essential roles in the evolving news ecosystem.

      Engaging audiences with news fatigue

      Audiences face news fatigue. Wars, political instability, climate change, and economic uncertainty contribute to this exhaustion. However, it’s essential to recognize that news fatigue does not equate to a lack of interest in journalism. On the contrary, data from the Pew Research Center shows that news consumption remains steady, with audiences following major events like the 2024 elections more closely than in previous years.

      News organizations must present these topics in ways that resonate with audiences. Context, relevance, and credibility are key to engaging readers and viewers. This is where the rise of the creator economy becomes highly useful. Content creators, with their ability to present news in relatable and entertaining formats, play a unique role in combating news fatigue.

      Audiences today are fragmented, consuming information from various platforms and influencers. Journalists and content creators can embrace this reality by delivering tailored, high-quality stories serving distinct audiences. Poynter recommends that rather than diluting content out of fear that audiences will turn away, the focus should be on creating stories that provide context and actionable insights.

      Newsrooms must innovate and adapt

      Despite ongoing challenges in the news industry, organizations are finding ways to adapt. Collaboration between traditional journalists and digital content creators is key in this evolving landscape, each bringing distinct strengths. The Poynter report highlights the growing influence of creators and influencers in news delivery and building trust with younger audiences. It also explores how they are reshaping the broader media ecosystem.

      As the industry transforms, one constant remains: high-quality journalism—whether produced by a traditional newsroom or a smartphone-wielding influencer—retains its crucial role in society. Together, these forces reshape how people consume and trust news. This partnership will shape journalism’s future, ensuring that reliable information reaches audiences in a digital-first world.

      Industry-Research | Video

      Ad-supported options drive SVOD sign-ups

      According to Samba TV’s new report on viewership for the first half of 2024, over-the-top (OTT) consumption grew by 40% year-over-year, highlighting the rising demand for on-demand content.  However, as audiences shift from linear TV, offering streaming video-on-demand (SVOD), ad-supported options are increasingly vital for capturing and retaining viewers.

      Meanwhile, linear TV continues its decline, with a 1% drop in year-over-year consumption and a 2% decrease in average daily reach. As the traditional linear TV audience ages, OTT services are starting to dominate the market. And, as the options and pricing models for SVOD proliferate, streamers are experimenting with a number of marketing methods to stand out.

      Growth of ad-supported streaming and FAST channels

      During the first six months of 2024, more than half of new SVOD sign-ups were driven by ad-supported options, indicating that consumers are increasingly willing to watch ads in exchange for lower subscription fees. Further, 33% of U.S. streamers now watch content on FAST channels. For advertisers, this shift presents ample opportunities to reach cord-cutters and engage with audiences in a more targeted manner.

      As competition intensifies among streaming platforms, effective marketing is becoming more crucial than ever. Many streamers are ramping up their advertising efforts in response, with billions of promotional campaign impressions across linear and OTT channels. Paramount+ and Warner Bros. Discovery’s Max leverage their built-in linear presences to boost visibility.

      Churn challenges

      Churn is a relevant concern despite the consistent addition of subscribers to SVOD platforms. Samba TV cites Antenna data showing that the number of cancellations is rising to the point where the net additions dropped by over 3 million year-over-year. This high churn reflects a broader trend of “subscription cycling,” where users frequently switch between services to access specific content.

      While nearly every household in the U.S. streams content, 44% watch only one or two platforms within six months. This highlights the challenge for streamers: keeping viewers engaged long enough to deter them from canceling their subscriptions. Streamers must optimize their release schedules, promote loyalty through bundling, and emphasize innovative content, such as live events, to combat churn. Importantly, content remains the primary driver behind subscription cycling, as viewers often return to previously abandoned platforms for highly anticipated new shows.

      Streamers increasingly leverage bundling, which provides added value to subscribers. The report notes additional Antenna data revealing that users who subscribe to bundles like the Disney Bundle and Apple One (bundles up to six Apple subscriptions for one lower monthly price) are less likely to cancel their subscriptions than those subscribed to individual services. For example, Apple TV+ had a churn rate of just under 9% in March 2024, while Apple One’s churn rate was less than 4%.

      Promoting content across a bundled portfolio helps reduce the risk of audiences churning after finishing a single show. Offering diverse content across multiple services can help prevent subscribers from canceling their subscriptions.

      Viewer preferences for SVOD

      Viewer preferences continue to evolve in the streaming era, with binge-watching becoming increasingly common. Data from Samba TV shows that audiences are more likely to binge-watch docuseries and crime shows when given the option. These genres drive binge rates by over 60%. In contrast, data shows that comedies and dramas are less likely to be binged.

      Interestingly, binge-watching is more prevalent among diverse households and in warmer climates. Cities like Houston, Orlando, and Phoenix show higher binge rates than cooler coastal regions. Additionally, Black and Hispanic households exhibit a stronger tendency to binge-watch than white or Asian households.

      Linear TV continues to serve a niche audience, particularly for live sports and news, but the growing preference for streaming platforms is undeniable. SVOD platforms, including those with ad-supported models, that effectively engage viewers by offering compelling content and value through strategic bundling are well-positioned to lead the rapidly evolving TV industry.

      Research | Video

      Consumers favor ad supported streaming

      The resurgence of ad-supported TV is a notable trend in the streaming business, and advertising is a central feature of the viewing experience. As streaming services multiply and subscription costs rise, consumers are increasingly opting for ad-supported alternatives. Hub Entertainment Research’s latest findings show that two-thirds of TV viewers prefer watching ads if it saves on subscription costs. This represents an eight-point increase over the past three years, indicating a significant shift in consumer preference. Hub’s study explores this attitude shift and how viewers perceive and interact with ads across different platforms.

      Normalization of ad-supported TV

      Economic pressures and budget constraints push viewers to seek more affordable entertainment options. Hub’s findings show that the percentage of consumers who express an aversion to ads fell from 17% three years ago to just 12% in June 2024. This decline in ad intolerance suggests that viewers are becoming more open to advertisements to reduce their overall entertainment expenses.

      While viewers are becoming more accepting of ads, the presentation of the ads plays a crucial role in the quality of their overall viewing experience. Hub’s study underscores that the ad experience significantly impacts viewer satisfaction and engagement. The number and length of ad breaks influence how reasonable viewers find the ad experience.

      Ad-supported video-on-demand (AVOD) platforms offer lighter ad loads and a more favorable overall ad experience than free ad-supported streaming TV (FAST) services and traditional multichannel subscriptions. Nearly eight in 10 viewers agree that there are “big differences” in the amount of advertising presented on competing TV services. This perception highlights the importance of managing ad loads to enhance viewer satisfaction.

      Amazon prime video’s impact on the ad landscape

      The introduction of ads on Amazon Prime Video has had a notable impact on the streaming landscape. Once a stronghold of ad-free content, Amazon Prime Video now includes ads by default. This change significantly reduces the proportion of viewers using ad-free streaming services to just three in five households.

      Most Prime Video viewers now watch with ads. Only those who use Amazon as a hub for other subscriptions or consider Prime Video a primary benefit of their membership opt for the ad-free experience. This shift highlights ads’ growing acceptance among viewers and the influence of major streaming platforms in shaping consumer preferences.

      Role of content in attention to ads

      Interestingly, the type of content viewers watch also affects their attention to ads. Participatory genres like talk shows, game shows, competition series, and mystery programs keep viewers more engaged during ad breaks. Certain content types can be more conducive to maintaining viewer attention, even when interrupted by ads.

      Opportunities for growth in ad-supported offerings

      Despite the increasing acceptance of ad-supported streaming, there is still significant potential for growth in this area. The study reveals that many viewers remain unaware of ad-supported offerings on major streaming services such as Disney+, Paramount+, Max, and Discovery+. Additionally, a significant minority believe these services are strictly ad-free.

      This gap in awareness presents an opportunity for streaming platforms to educate consumers about their ad-supported tiers. Targeted marketing messages aimed at budget-conscious non-subscribers could help drive growth in these offerings. Providing viewers with more affordable options and expanding the reach of ad-supported streaming appears to be a win-win scenario.

      The report findings indicate a strong future for the streaming advertising marketplace. As consumers continue to embrace ad-supported streaming to save on subscription costs, the demand for well-executed ad experiences will grow. Streaming services offering reasonable ad loads and shorter breaks will likely see better viewer attention and engagement outcomes. Understanding and catering to viewer preferences is crucial as the streaming industry evolves.

      Industry-Research

      The impact of media companies opting out of open-web AI training

      The internet is seen by some as a vast repository of information readily available for training open and closed AI systems. However, this “data commons” raises significant ethical and legal concerns regarding data consent, attribution, and copyright, particularly for media companies. These concerns are growing due to the fear that AI systems may use the media’s content for training without consent, exacerbating conflicts over intellectual property rights.

      A new study, Consent in Crisis: The Rapid Decline of the AI Data Commons, investigates these issues by examining how AI developers use web data and how data access and usage protocols shift over time. This research involves a comprehensive audit of web sources used in major AI training datasets, including C4, RefinedWeb, and Dolma.

      The research also evaluates the practices of AI developers, such as Google, OpenAI, Anthropic, Cohere, and Meta, as well as non-profit archival organizations such as Common Crawl and the Internet Archive. By focusing on dynamic web domains and tracking changes over time, this study assesses the evolving landscape of data usage and its implications for media companies.

      The research observations provide strong empirical evidence for the misalignment between AI uses and web-derived training data. This analysis helps track major shifts in signaling consent preferences and reveals current tools’ limitations.

      Increased restrictions on AI data

      • From April 2023 to April 2024, a growing number of websites started blocking AI bots from collecting their data. Websites accomplish this by including specific instructions in files called robots.txt and their terms of service.
      • Impact: About 25% of the most critical data sources and 5% of all data used in some major AI datasets (C4, RefinedWeb, and Dolma) are now off-limits to AI.
      • OpenAI’s bots, which collect data for AI training, are blocked more often than other companies’ bots. The rules about what these bots can and cannot do usually need to be clarified or more consistent.
      • Impact: This inconsistency makes adhering to data usage preferences difficult and indicates ineffective management tools.

      Divergence in the web data quality

      • The most popular web domains for AI training are news, forums, encyclopedias and includes academic and government content. These domains contain diverse content, such as images, videos, and audio. Many of these sites montize via ads and paywalls. They also frequently have restrictions for how their content can be used in their terms of service. In contrast, other web domains consist of personal/organizational websites, blogs, and e-commerce sites with less monetization and fewer restrictions.
      • Impact: The increasing restrictions on popular, content-rich websites mean that AI models must increasingly rely on open or user generated content. Thus, they miss out on the highest-quality and most up-to-date information, potentially affecting their performance and accuracy.

      Mismatch between web data and AI usage

      • There needs to be a closer connection between the web data collected for training AI and the actual tasks AI systems perform in the real world.
      • Impact: This misalignment could lead to problems with AI systems’ performance and data collection. It may also lead to legal issues related to copyright.

      AI economic fears may reshape internet data

      • The use of internet content for AI training, which was not its original intent, shifts incentives for content creation. With the increasing use of paywalls and ads, small-scale content providers might opt out or move to walled platforms to protect their data. Without better control mechanisms for website owners, the open web is likely to shrink further, with more content locked behind paywalls or logins to prevent unauthorized use
      • Impact: This trend could significantly reduce access to high quality information availability for AI training.

      The media’s choice to opt out of AI training

      While the Internet has served as a critical resource for AI development, the use of the content created by others, including the media, (often at great expense) without consent presents significant ethical and legal challenges. As more media companies choose to exclude their content from AI training, the datasets become less representative and outdated. The decline in data quality reduces the relevance and accuracy of the resulting AI models. Therefore, improved data governance and transparency are essential to allow for open access of content online. It also provides a framework for ethical use of web content for AI training, which in turn should improve the quality of training data.

      Industry-Research | Innovation

      Does Generative AI aid or homogenize human creativity?

      Creativity fuels innovation and expression across various media disciplines. With the advent of generative artificial intelligence (AI) and large language models (LLMs), many question how these technologies will influence human creativity. While generative AI may effectively enhance productivity across sectors, its impact on creative processes remains questioned. New research, Generative AI enhances individual creativity but reduces the collective diversity of novel content, investigates AI’s effect on the creative output of short (or micro) fiction. While the research focuses on short stories, the study examines how generative AI influences the production of creative expression, which has larger implications.

      Creative assessment

      The study evaluates creativity based on two main dimensions: novelty and usefulness. Novelty refers to the story’s originality and uniqueness. Usefulness relates to its potential to develop into a publishable piece. The study randomly assigns participants to one of three experimental conditions for writing a short story: Human-only, Human with one Generative AI idea, and Human with five Generative AI ideas.

      The AI-assisted conditions include three-sentence story ideas to inspire creative narratives. This design allows the researchers to assess how AI-generated prompts affect the creativity, quality, and enjoyment of the stories produced. Both writers and 600 independent evaluators assessed these dimensions, providing a comprehensive view of the stories’ creative merit across different conditions.

      Usage and creativity

      In the two generative AI conditions, 88.4% of participants used AI to generate an initial story idea. In the “Human with one Gen AI idea” group, 82 out of 100 writers did this, while in the “Human with five Gen AI ideas” group, 93 out of 98 writers did the same. When given the option to use AI multiple times in the “Human with five GenAI ideas” group, participants averaged 2.55 requests, with 24.5% asking for a maximum of five ideas.

      The findings from the independent evaluators show that access to generative AI significantly enhances the creativity and quality of short stories. Writers who use AI-generated ideas to produce stories consistently rate higher in creativity and writing quality than those written without AI assistance. This effect was particularly noticeable in the Human with five GenAI ideas condition, suggesting that increasing exposure to AI-generated prompts leads to greater creative output.

      However, the study also uncovers notable similarities among stories generated with AI assistance. This suggests that while AI can enhance individual creativity, it also homogenizes creative outputs, diminishing the diversity of innovative elements and perspectives. The benefits of generative AI for individual writers may come at the cost of reduced collective novelty in creative outputs.

      Implications for stakeholders

      Despite several limitations, the research highlights the complex interplay between AI and creativity across different artistic domains. These limitations restrict the creative task by length (eight sentences), medium (writing), and type of output (short story). Additionally, there is no interaction with the LLM or variation in prompts. Future studies should explore longer and more varied creative tasks, different AI models, and the ethical considerations surrounding AI’s role in creative text and video production. Examining the cultural and economic implications in creative media sectors and balancing innovation with preserving artistic diversity is essential.

      Generative AI can enhance human creativity by providing novel ideas and streamlining the creative processes. However, its integration into creative media processes must be thoughtful to safeguard the richness and diversity of artistic expression. This study sets the stage for further exploration into generative AI’s evolving capabilities and ethical implications in fostering creativity across diverse artistic domains. As AI technologies evolve, understanding their impact on human creativity is crucial for harnessing their full potential while preserving the essence of human innovation and expression.

      Industry-Research

      Financial motivation impacts the public’s perception of news

      The news media face significant challenges in today’s market, particularly in engaging large, diverse audiences and ensuring that their content is trusted and valued. While much of the discussion around consumer disengagement in news focuses on issues like bias and clickbait, a new culprit has emerged: the public’s perception of profit-driven news.

      Some people believe that news companies are increasingly compromising their integrity by prioritizing profit and financial gain, even as the industry struggles to improve its public standing and economic sustainability. Journalism scholars Jacob L Nelson, Seth C Lewis, and Brent Cowley explore factors influencing the perceptions of news trustworthiness. Their research, Money is the root of all evil.’ How the business of journalism shapes trust in news examines how perceptions about news funding influence trust and engagement with news content.

      Trust, bias, and skepticism of the news

      The authors interviewed 34 news consumers, using the folk theory—a generative approach to uncovering the narratives people construct on any given topic. The root causes of trust understandably vary among individuals. Some respondents attribute their distrust of the news industry to the rise of populism, others to the influence of digital technology, and some to the lack of diversity in traditional newsrooms.

      However, despite these varied perspectives, many perceive news reporting as biased. While discussions on bias typically focus on political leanings, economic bias can play an equally significant role. Economic pressures influence public trust; many today believe news organizations prioritize profitability over accurate reporting.

      Skepticism toward journalism also stands as a barrier to trust. Respondents highlighting their skepticism and concerns often feel compelled to fact-check and corroborate news stories. They view the news as ideologically biased rather than objective, leading them to consume it critically and avoid accepting journalistic perspectives as entirely truthful.

      Is the news profit-driven with an economic bias?

      The research participants assume news organizations primarily make money through advertising, leading to a focus on attracting large audiences. They believe this economic pressure results in sensational and often ideological biases in news coverage. The perception of journalism as profit-driven contributes to consumer distrust of news, as they view the news media as prioritizing profit over accurate reporting.

      Further, respondents frequently point to journalism’s pursuit of profits as a reason for their deep skepticism. They observe news organizations striving to secure advertising deals and attract large audiences, thinking this will influence the journalists’ reports. Those who see ideological bias in the news perceive it as economically motivated rather than ideologically driven.

      Perception controls reality

      Audience distrust stems not necessarily from the news media’s actions but from the perception that news organizations prioritize profits above all else. While skepticism towards commercial influence is justified, this study indicates that audiences overwhelmingly view economic interests as dominating journalistic integrity. The respondents’ perception suggests that audiences believe profit-driven priorities significantly compromise journalistic quality.

      News without profit-motivations: Non-profit or publicly-funded

      The authors believe journalists will not restore public trust solely by maintaining objectivity and avoiding political bias. They recognize the need for news organizations to have revenue goals. However, they recommend addressing the economic model of journalism and demonstrating a clear separation between financial motives and journalistic integrity.

      They also see options in non-profit or publicly funded models, which can reduce perceptions of profit-driven motives in the news. While trust in publicly funded outlets like the BBC dropped, a structural shift across the could improve trust. Public funding could especially benefit local newsrooms, which are perceived positively but are financially vulnerable.

      It is essential to understand public perceptions of newsroom economic motivations and their impact on trust. Further examination of the assumptions that journalism’s commercial interests shape people’s trust in news is key to understanding the nuances of the industry’s credibility challenges. Meanwhile, increasing transparency can help address audience concerns about revenue and profits influencing journalistic work.

      Diversity, Equity & Inclusion | Industry-Research | Video

      Today’s audiences like short video news with personality

      Influencers, independent journalists, and smaller news outlets sharing news and commentary on social platforms increasingly compete for audience attention with traditional and digital news brands. These “alternative voices” can also provide a place for a diverse array of opinions and perspectives—though the most popular accounts don’t appear to be particularly diverse or alternative, unless the term alternative is simply defined as delivered by social platforms outside of established news brands.

      Platforms like TikTok and Instagram offer access to creator tools and global distribution, which helps these accounts reach large audiences. However, measuring the extent of news consumption on social and video networks is complex due to the diverse range of accounts and topics discussed. However, Reuters’ Institute’s new report, Digital News Report 2024, provides a snapshot of the most influential accounts and the balance of attention between alternative news sources and mainstream. The report examines the nature of these alternative voices and their followers and evaluates the reliability of the information and the implications for the marketplace.

      Recall of alternative news accounts (58%) surpasses mainstream news brands in the U.S. (42%). This indicates a significant shift toward news creators and influencers. This trend also underscores alternative voices’ growing influence, as well as the continuous evolution of news content and delivery.

      Linked to this trend, video storytelling is an increasingly crucial online news source, especially among younger audiences. Short news videos – popular on TikTok and Instagram – are accessed by 66% of respondents each week, while longer formats attract around 51%. Most online news video consumption takes place on social platforms. Audiences favor these platforms for news (72%) over publisher websites, which only attract 22%. This increases the challenges around monetization and connection for traditional news publishers.

      Audience and content analysis

      Reuter’s report asked respondents to name accounts they follow most closely across six popular platforms—Facebook, X, YouTube, Instagram, Snapchat, and TikTok. Respondents identify Tucker Carlson and Joe Rogan as the accounts they follow most closely. Interestingly, the most mentioned (top 10) individual names offer political commentary or chat rather than original newsgathering. Most of the popular content is also partisan, with little or no attempt to present a balanced view. And the entire top 10 list is comprised of white men. Many of these names are hardly “alternative,” as they come with decades of experience in legacy media ― traditional cable or talk radio networks.

      Some alternative news brands are comprised of multiple creators, such as the Daily Wire and Blaze TV (conservative), Young Turks, and Medias Touch (progressive). Regardless of their politics, the look is consistent and video-centric. It’s somewhere between a podcast and a TV broadcast – with mostly male hosts talking to mostly male guests.

      The nature of some of this content may not appeal to advertisers. As a result, some personalities find other ways to generate revenue, such as appealing directly for donations or selling merchandise. A few, such as Tucker Carlson, are trying out premium subscriptions, providing additional content or networking opportunities for a fee.

      Reliability and impact on society

      The reliability of information shared by alternative voices is a critical concern. While some independent journalists and creators provide valuable insights and diverse perspectives, others report misinformation and partisan content. The decentralized nature of these platforms makes it challenging to regulate content quality, leading to potential societal impacts, such as increased polarization and the spread of false information.

      The rise of alternative news sources and the popularity of individual’s “news” accounts shows a growing audience preference for creators and influencers—even in their consumption of what they define as news. These alternatives claim to offer free expression, positioning themselves against mainstream media, which they accuse of suppressing the truth or serving elite interests.

      The insights provided by Reuters’ findings makes evident the popularity of short form video for news among audiences. It also sheds some light on the types of storytelling and storytellers who audiences find most engaging. News media outlets should explore new creative formats and personalities and showcase creators’ individual style and personalities to embrace changing news preferences and engage today’s audiences.

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