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

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.

Industry-Research | Video

Video streaming landscape matures through nuanced growth

Video streaming services (SVODs) are entering a new phase of maturity, characterized by moderate growth in an increasingly crowded market. SVODs are shifting their focus from subscriber acquisition to implementing strategies to achieve profitable growth. Marketplace trends show that advertising and bundling services are integral to the next stage in the SVOD landscape.

According to Antenna’s new State of Subscription report, most new SVOD subscribers selected ad-supported tiers in Q4 2023 and Q1 2024. This practice will likely continue, as ad-supported subscriptions account for over half of the gross additions during this period. Notably, 61% of SVOD consumers opted for the ad-supported service, indicating a significant shift toward ad acceptance.
Antenna identifies subscribers in four distinct choice groups:

  1. Ad Takers – Always opt for ads.
  2. Ad Avoiders – Never choose ads.
  3. Ad Managers – Mix and match ad-supported and ad-free plans.
  4. Ad Oblivious – Have not encountered an ad choice.

With 38% of subscriptions now ad-supported, reflecting a 7-point increase from 2023, consumers are increasingly open to ad-supported options. This trend is further apparent by the growing segment of Ad Takers, which has increased by 11.2 million since Q1 2022.

Benefits of bundling

Bundling SVOD services proves to be an effective strategy for reducing churn. Disney and Apple observed a 2 to 6-point improvement in churn rates for their bundled services compared to standalone offerings. Bundling Disney+, Hulu, and ESPN+ helps retain more subscribers than offering each service separately.

Antenna’s Bundle Benefit Ratio (BBR) measures the potential upside of bundling. It suggests that most premium SVODs have more curious customers than committed ones. This indicates the potential for bundled offerings to convert these curious customers into loyal subscribers.

  • Curious Customers: Users who have either canceled a service or are currently subscribed to a service for 6 months or less.
  • Committed Customers: Users who have subscribed to a service for over 6 months and have not canceled it before.

All Premium SVODs, except Netflix, have a higher number of Curious Customers compared to Committed Customers. Netflix’s exceptionally low Bundle Benefit Ratio indicates a higher risk of cannibalization from bundled offerings than other services. Notably, Netflix’s bundling strategies have mainly targeted its Ad-Supported tier. Conversely, Starz and Max have the highest ratios of Curious to Committed customers, indicating substantial potential gains from bundling strategies.

Effective acquisition strategies

The method of subscriber acquisition significantly impacts customer lifetime value (CLTV). Users acquired at full price can have CLTVs that are 52% higher than those acquired via free trials. Full-price subscribers tend to have higher retention rates and greater long-term value. In 2022, 65% of SVOD sign-ups came at full price from day one, continuing into 2023 and Q1 2024.

Promotions also play a critical role in driving annual plan uptake. For instance, when discounted in late 2022, the uptake of Max’s (formerly HBO Max) annual plans increased more than fivefold. This demonstrates that well-timed promotions can significantly boost long-term subscriber commitments.

Growth and churn dynamics

The overall growth of SVOD subscriptions has slowed to a more moderate pace, with a 10.2% year-over-year increase compared to 18.8% in 2023. However, specialty SVOD services have outpaced premium ones, growing at 15.8% YoY versus 9.4%. This growth is driven by niche content that appeals to specific audiences, highlighting the importance of content differentiation in the competitive SVOD market.

SVOD services must optimize pricing and packaging strategies to drive healthy performance. Ad-supported tiers will continue to play a crucial role, with increasing consumer acceptance and the potential for significant revenue from advertisements. Bundling and effective acquisition strategies will also be vital in maintaining and growing subscriber bases. The video streaming industry is evolving towards sustainable and profitable growth. As SVOD services navigate the landscape, they must balance subscriber acquisition with retention strategies, leveraging ads, bundles, and pricing tactics to achieve long-term success.

Industry-Research | Innovation

Want to build your audience? Consider the fediverse

The fediverse buzz continues to grow, with articles highlighting the potential to revolutionize the digital landscape. Proponents say it’s similar to the Internet’s early days, before Big Tech platforms built their algorithmic fiefdoms. Instead, the fediverse is about interoperability and flexibility.

Media companies are always on the lookout for ways to attract new audiences and engage more meaningfully with their readers. And – given Google’s experimentation with AI answers and social sites “distancing themselves from news” – finding new routes to audience development has become an increasing imperative.  

The decentralized nature of the fediverse offers a compelling alternative to traditional search and social. Importantly, this approach allows media companies to retain their direct relationship with audiences, which removes the dependency on social and big-tech platforms for reaching new people.

Unlike traditional social media platforms that operate within closed ecosystems, fediverse represents a decentralized network of interconnected servers and platforms. It comprises a federation of independent servers, each hosting its social media platform.

These platforms, which range from microblogging to image sharing to video hosting, communicate using standard protocols. Their interoperability allows people on different servers to interact seamlessly. The fediverse decentralizes media companies by enabling them to distribute their content across interconnected servers and platforms rather than relying on a single, centralized platform.

Emphasis on choice and control

Unlike centralized platforms, where a single server owned by the platform provider stores user data and content, fediverse lets people choose their server. This server is selected based on individual preferences regarding privacy, content moderation, and community guidelines. This decentralized approach empowers audiences by putting them in charge of their online experience. It also mitigates concerns about data ownership and platform censorship. For media companies, this translates into an environment where people are more likely to engage with content they trust and have control over.

Encouraging diversity and inclusivity

The fediverse enables people to connect across different platforms and communities within the federation. For example, a user on a microblogging platform can follow and interact with users on a video hosting platform. This functionality breaks down the barriers that typically separate content and conversations on traditional social media platforms. This cross-platform interaction fosters a rich tapestry of ideas, perspectives, and content, creating a more vibrant and dynamic online ecosystem. Media companies can leverage this aspect of fediverse to reach diverse audiences actively seeking varied content.

Organic and community-driven engagement

In contrast to the centralized model, where platform algorithms often dictate content visibility and user interactions, fediverse promotes a more organic and community-driven approach. Users have greater control over their timelines and content visibility, allowing for a more personalized and authentic online experience.

This user-centric design aligns with evolving expectations of digital privacy and autonomy, resonating with individuals seeking alternatives to mainstream social media platforms. Media companies can benefit from this by creating content that naturally finds its way to interested audiences without algorithmic interference.

Media companies test the fediverse

At least two digital media companies are exploring the fediverse to gain more control over their referral traffic and onsite audience engagement. The Verge and 404 Media are building new functions that allow them to simultaneously distribute posts on their sites and federated platforms like Threads, Mastodon, and Bluesky. Replies to those posts on those platforms become comments on their sites.

This functionality means people from different platforms can interact with the content without creating individual accounts for each platform. For media companies, this interoperability can significantly enhance audience reach and engagement.

Advantages for media companies using the fediverse

Usability and interoperability are ideal for enhancing user experience. This approach enables seamless communication between platforms, ensuring autonomy, and providing robust content control.

  • Interoperability ensures that different platforms can communicate using common protocols like ActivityPub. This allows people to interact with content across various platforms seamlessly, thus creating a unified and interconnected ecosystem.
  • User autonomy empowers people to select their servers (instances) based on their preferences for privacy, moderation, and community guidelines, offering greater freedom and reducing the dominance of any single platform.
  • Content control enables media companies to host their servers or collaborate with trusted ones, giving them direct control over content distribution and audience engagement. Therefore, it mitigates risks associated with algorithm changes or policy shifts on major social media platforms.
  • Cross-platform interaction allows content like a media company’s article shared on one platform to receive comments, likes, and shares from users on other platforms, broadening reach and engagement without being confined to a single platform.
  • Community-driven moderation decentralizes content moderation, allowing it to occur at the community or server level. Media companies can set moderation policies to ensure their content meets their standards and audience expectations.
  • Enhanced privacy through decentralization gives media companies more control over their data and privacy settings, protecting user data from being exploited by large platforms.

Although federated platforms have smaller user bases than the larger walled gardens like Facebook and X, they offer significant audiences for media companies. Federating sites allow media companies to tap into the growing demand for decentralized, user-centric platforms, attracting new audiences and fostering a more loyal and engaged user base.

Federated platforms offers the potential for a fundamental shift in how media companies interact with their audiences. Media companies that experiment with the fediverse can initiate engagement and have an opportunity to build stronger, more direct connections with their audiences.

Industry-Research

Consumers value local news, though they fail to support it

Consumers value local news media, with a large majority saying that local news outlets are at least somewhat important to the well-being of their local community according to new research from Pew. Most people also say local journalists are in touch with their communities and that their local news media perform well at several aspects of their jobs, such as reporting the news accurately.

Interestingly, Republicans and Democrats both display significant confidence in local reporting, with 66% and 78%, respectively, which showcases bipartisan support. This widespread trust highlights the local media’s role in ensuring accountability and integrity in governance.

Nevertheless, the landscape continues to shift as more consumers engage with local news through online forums and social media groups. Unfortunately, these days intermediaries have moved to the forefront and diminished the direct influence – and perceived value – of news publishers. In fact, a mere 15% of Americans say they have paid or given money to any local news source in the past year – a number that has not changed much since 2018. Oddly, this coincides with the finding that a majority of Americans (63%) say they think their local news outlets are doing very or somewhat well.

Consequently, local news outlets are re-evaluating their strategies to engage audiences effectively. Addressing how local news businesses can adapt, serve their communities, reignite an interest in, and support for, news media to flourish in the current media environment remains a critical challenge for the industry.

Local news is appealing, but to smaller audiences

Around 85% of those surveyed indicate that local news outlets are at least “somewhat important” to the well-being of their local community. Similarly, a majority believe that local journalists are in touch with their communities and perform well in various aspects of their jobs, such as accurately reporting the news.

However, despite reporting significant value and trust, Pew’s trending data shows that the share of U.S. consumers who actively follow local news very closely dropped from 37% to 22% in the last eight years. Additionally, many consumers are unaware of local news’s significant financial challenges. Of these, 63% (slightly fewer than in 2018) believe their local news outlets are doing very well.

Demographics impact the perception of local news

If attention correlates to valuing local news, the industry needs to pay attention to audience behavior. A decline in attention to local news has occurred across demographic groups, though there are significant differences by age. Young adults are much less likely than their older adults to say they follow local news: In 2024, only 9% of U.S. consumers 18 -29 say they follow local news very closely, compared with 35% of those 65 and older. 

Americans with higher levels of formal education are less likely than those with a high school diploma or less education to follow local news very closely. While 17% of college graduates follow local news very closely, 28% of those with a high school education or less say the same.

Among U.S. adults ages 30 and older who have not paid for local news in the past year, the most common reason they cite is that they can find plenty of free local news. This is likely influenced by the sharing of local news – or at least information about things happening locally – via social platforms. However, as platforms “distance themselves” from the news, the likelihood of people encountering news from a publisher are increasingly diminished.

While 37% cite the availability of free alternatives, the most common reason given by Americans ages 18 to 29 is a lack of interest: 46% in this group say the main reason they don’t pay for local news is that they are not interested enough in it.

Local news consumption shifts to streaming

Streaming offers a viable outlet for local news. With nearly 40% of U.S. households reachable only through streaming TV, local news can deliver a converged linear and streaming advertising strategy to access the total TV audience in a local market. This shift to streaming enables personalization in local news content while catering to individual viewer preferences. It also allows local broadcasters to monetize local inventory across a broader spectrum of premium publishers, reinventing the advertising paradigm.

The evolving landscape of local news presents challenges and opportunities for the future of journalism. While digitization transforms how news is accessed and consumed, local news’ fundamental role in informing communities remains unchanged. Local news outlets can find new and direct paths to the consumer by adapting to changing consumer preferences and embracing digital innovation. By leveraging technology and engaging more interactively with their audiences, these outlets can enhance their relevance and sustain their crucial societal role.

Industry-Research | Video

What Twitch can teach the media about audience engagement

Twitch – the go-to platform for gamers and live streamers – may have something to teach the media about as a news production and engagement. New research shows a generational shift in live news production, emphasizing community-driven storytelling and interactivity and real-time engagement. Amazon-owned Twitch’s popularity among young audiences challenges traditional journalism to confront the realities of how news consumption is changing.

In their paper, Recasting Twitch: Livestreaming, Platforms, and New Frontiers in Digital Journalism, researchers Maxwell Foxman, Brandon Harris, and William Clyde Partin explore Twitch as a new platform for journalists and examine how the platform influences journalistic practices. They analyze three popular Twitch channels: The Washington Post (WaPo), Hasan Piker, and Patriots’ Soapbox (PSB). The authors chose to focus on these three channels due to their popularity and distinct modes of news production thereby offering a comprehensive view of the platform’s impact on journalism.

The research highlights several themes regarding news production on Twitch: the concept of liveness, various styles and formats used, engagement with the audience, professional identity and boundaries, and the platform’s relationship with digital intermediaries.

A Twitch approach to live news and entertainment

Central to Twitch’s influence on journalism is its unique approach to “liveness.” Liveness refers to audiences routinely tuning in and interacting with creators. The platform encourages viewers to actively contribute during streams through Chat, which also becomes content that hosts react to aloud. The real-time back-and-forth entertains users.

While WaPo relied on exclusive coverage and traditional broadcast formats, Piker and PSB (which appear to no longer be on Twitch at all) integrate pre-existing content and engage directly with their audiences, fostering a sense of community and immediacy. This dynamic interaction blurs the lines between creators and consumers, redefining the traditional roles of journalists and audiences.

Media style and format

Each channel exhibits its style and format, reflecting the diversity of content on Twitch. The Washington Post’s channel (which hasn’t broadcast since May 6, 2024) took an approach that resembles traditional broadcast journalism. Piker’s is a social media-inspired mix of news and entertainment. PSB offers hyper-partisan commentary. Twitch provides a wide range of approaches to news production, which allows news brands to cater to diverse audience preferences.

Professional identity and boundaries

Each channel navigates journalistic boundaries differently. WaPo adheres closely to traditional journalism practices. However, Piker and PSB embrace their roles as ideological commentators, blurring the lines between journalism, entertainment, and political activism. This fluidity in professional identity can challenge traditional journalistic integrity and objectivity norms.

Audience engagement lessons for media

Audience interaction is central to all channels, with each streamer fostering a collaborative relationship with their viewers. Piker and PSB rely on audience contributions for content and validation, while WaPo maintains a more traditional broadcast format with limited on-air engagement. This direct interaction enhances viewer engagement and fosters a sense of community, continuing to blur the distinction between creators and consumers.

Twitch and media audience engagement

This study recognizes Twitch as a way to offer new and innovative forms of journalism that challenge traditional norms and practices. Its unique approach to “liveness,” diverse styles and formats, and dynamic interaction with audiences could impact how journalists produce news as it reflects how audiences engage with information they enjoy.

ESPN’s Esports channel (active almost daily as of May 2024) has 88.8k followers
https://www.twitch.tv/espnesports

However, while Twitch has lessons to teach legacy news organizations, it seems few have found a sustainable model on the platform. In addition to the sites included in the research, it appears that channels for Wired, Complex, Rolling Stone, and Vice have all gone dormant. In any case, this research highlights the evolving relationship between live streaming, entertainment, and news.

The popularity of Twitch (as well as other social platforms) among young audiences needs to offer more than competition for media brands. It is important that we experiment by going where the audiences are. However, it is also important that we begin to understand the reasons audiences gravitate towards these platforms to find ways to better attract and engage them.

Industry-Research | Video

Most people opt for free, ad-supported streaming

The ubiquity of streaming services is evident in their widespread adoption across various models, including subscription-based and ad-supported platforms. In fact, nearly every U.S. household (99%) subscribes to one or more streaming services. Of those, the majority (58%) are willing to endure occasional interruptions in exchange for cost savings.

This sentiment underscores a growing trend toward prioritizing affordability without sacrificing the viewing experience. In addition, 62% prefer free, ad-supported streaming over paid subscriptions. New research, The Stream 2024, sponsored by Tubi, examines the streaming surge and reflects a fundamental shift in how people consume content. These days, convenience and flexibility take precedence over traditional television viewing.

Further, on-demand streaming services are the new norm in entertainment consumption. As households cut the cord to traditional cable subscriptions, streaming services are now integral to daily life for millions. From disrupting the sports-streaming landscape to championing representation and diversity in content, millennials and Gen Z are at the forefront of this cultural shift. However, as these demographics grapple with financial constraints, they are increasingly reevaluating their relationship with streaming services.

Viewers’ advertising preferences

Consumers viewing ad-supported streaming services ad preference:

  • Like those on TV, standard ad breaks are strategically inserted at convenient plot point breaks within an episode or film (35%). They provide a fitting pause that harmonizes with the content’s flow. 
  • Personalized ads that align with consumer interests and viewing journeys offer an enhanced experience. Most viewers (67%) prefer ads relevant to their streaming content, while 29% appreciate targeted ads tailored to their preferences.
  • A notable 35% of audiences embrace quirky or unconventional ads for an added dose of enjoyment: Surprise and delight viewers with the unexpected.

Budget constraints and content preferences

While the attraction of streaming is undeniable, viewers are increasingly mindful of their spending habits. With subscription costs rivaling traditional pay TV services, price sensitivity is rising, particularly among younger audiences. Consequently, many are reassessing their streaming habits, with 27% admitting to using more services than they plan to in the future.

Moreover, viewers crave variety and fresh content. Their preferences lean towards a vast selection of shows and movies (69%) and new or original content (61%). As such, there is a growing demand for tailored content experiences that cater to diverse tastes and preferences.

This report suggests that ad-supported freemium models are poised to play a pivotal role in shaping the future of content consumption. By offering a blend of quality content and reasonable spending options, platforms can cater to consumers’ evolving needs while presenting compelling opportunities for marketers. Notably, the future of ad-supported services relies on a holistic viewer journey where ads amp up rather than interrupt the narrative.

Tubi’s research also suggests that integrating artificial intelligence (AI) holds immense promise in enhancing content discovery and personalization, addressing viewers’ dissatisfaction with current recommendation algorithms. As technology, tastes, and behaviors evolve, the onus is on streaming platforms to anticipate and adapt to shifting trends, delivering engaging narratives and seamless viewing experiences.

Streaming quality time and self-care

Streaming has taken on a role beyond entertainment, fostering a role in human connection and personal empowerment. For many, streaming represents an opportunity to bond with loved ones, with 71% of viewers citing it as a form of quality time spent with family or friends. Moreover, many view streaming is a form of self-care, with 68% of individuals leveraging it to carve out precious alone time in their hectic schedules.

The rise of on-demand streaming represents a paradigm shift in how audiences consume and engage with content. As streaming services continue to develop, understanding and adapting to evolving viewer preferences and market dynamics is essential for both platforms and marketers. Streaming platforms can shape meaningful connections with audiences by embracing innovation, diversity, and affordability.

Diversity, Equity & Inclusion | Industry-Research

Women just might achieve editorial leadership equity – in 50 years

Top editorial positions within news organizations are crucial in informing and shaping public discourse and understanding. The composition of these positions influences the narratives presented to the public and reflects the industry’s commitment to diversity, equity, and inclusion—and to representing the diverse audience the news media serves.

That said, editorial roles are still largely filled by men. According to Reuters Institute’s Women and Leadership in the News Media 2024, only 24% of the 174 top editors across the 240 brands covered in the report are women, despite the fact that, on average, 40% of journalists in the 12 markets are women.

In its fifth annual report, Reuters Institute for the Study of Journalism’s Women and Leadership in the News Media 2024 highlights the representation of women in leadership roles within the journalism industry and offers insights into the ongoing disparities that persist. The research finds that, though there has been improvement, it is taking place at a glacial pace.

Under-representation of female editors

Reuters delves into the nuanced dynamics among 240 major online and offline news outlets in 12 diverse markets. The 12 markets include Kenya and South Africa; Hong Kong, Japan, and South Korea in Asia; Finland, Germany, Spain, and the UK in Europe; Mexico and the US in North America; and Brazil in South America. The research examines cultural norms, institutional practices, and societal attitudes toward gender roles in each market.

This year’s study shows that although women constitute a significant proportion of journalists in many markets, their representation in top editorial positions remains disproportionately low. The subtle relationship between the percentage of female journalists and their representation in top editorial roles is evident. The research highlights the complex factors influencing career advancement in journalism and the broader news media landscape. Further, it indicates that external societal factors are not the primary impetus for this phenomenon. Rather, they are intrinsic to the profession and industry.

The report’s authors note the periodic industry focus on diversity and gender equity in the news media. Certainly, this is important as it drives change. However, they caution that the current interest in addressing the lack of diversity may be ebbing away.

These observations underscore the complex interplay of factors shaping the composition of top editorial roles. They suggest that addressing the issue requires a multifaceted approach that includes internal practices and industry culture. This recognition is crucial for fostering a more inclusive and representative media landscape that resonates with diverse audiences and rebuilds trust in journalistic institutions.

News media forecast for gender equity

This report emphasizes that while there’s been some progress over the years, the pace of change is very slow. For instance, Reuter’s analysis covering five years from 2020 to 2024 shows a marginal increase from 23% to 25% in the proportion of women among top editors. However, projections cautiously suggest that achieving gender parity in these positions could be an achievable, if a distant, goal. A linear projection based on the observed two-percentage-point change over four years indicates potential gender parity by 2074. Alternatively, conducting an average analysis across five years and 10 markets suggests that achieving gender parity among top editors may never occur at the current rate of change.

Further, the change varies within our sample. In six countries, the percentage of women in top editorial positions increased compared to 2020. Conversely, Mexico (6%) and Japan (0%) remained unchanged, while Germany (from 27% to 25%) and South Africa (from 47% to 29%) decreased.

As the research continues to track developments in gender diversity among top editors globally, it underscores the need for proactive measures to address systemic inequalities. The journalism industry must strive toward a more representative and responsive media landscape by prioritizing a culture of empowerment and support for women in leadership.

Diversity, Equity & Inclusion | Industry-Research | Video

Hollywood’s diversity-driven returns don’t align with investments

In Hollywood, where creativity meets commerce, diversity is a central theme, not just on the screen but also behind the scenes. Box-office numbers demonstrate the power and profits wielded by audiences of color and women: People of color dominated opening weekend sales for 14 of the top 20 films in 2023, while while female moviegoers dominated sales for three films in the top 10, according to the latest Hollywood Diversity Report.

UCLA’s annual Hollywood Diversity Report, now in its eleventh edition, offers insight and guidance for the industry in representation, inclusion, and profitability. This report examines diversity within Hollywood’s top films and TV shows, showcasing the realities between demographics and the bottom line. It delves into dimensions such as race, ethnicity, gender, age, sexual orientation, religion, and disability status. The study offers a better understanding of Hollywood’s diverse landscape using data from sources like The Studio System, Variety Insight, IMDb, comScore, and Box Office Mojo. The report provides valuable insights into the industry’s efforts to reflect society’s diversity by tracking data and their correlation with audience preferences.

Cast diversity

Despite the demonstrated success of diverse casts, the report highlights disparities in gender representation. Despite significant gains, women’s share of top theatrical film leads declined to 32.1% in 2023 from 38.6% in 2022. This decline underscores women’s ongoing challenges in securing prominent roles within the industry.

Moreover, the report delves into the representation of individuals with disabilities, an area that has historically received less attention. While the report shows some progress, adults with disabilities remain underrepresented as theatrical film leads in 2023. Only 7.1% of all top theatrical film roles include actors with a known disability.

Further, the report uncovers disparities within racial and ethnic groups and gender identities. While certain groups, such as Asian and MENA (Middle East and North Africa) individuals, approach proportionate representation, others, including Black, Latinx, and multiracial individuals, continue to face significant underrepresentation.

Budget allocation and financial performance

Budget allocation also emerges as a factor affecting diversity within the industry. The report underscores the correlation between diversity and box office success, revealing that films with casts featuring 31 to 40% BIPOC (Black, Indigenous, and People of Color) enjoy the highest median global box office receipts. Notable titles include Barbie, The Hunger Games: The Ballad of Songbirds & Snakes, and Shazam!

However, films with BIPOC leads are also likelier to have the smallest and largest budgets, highlighting the uneven distribution of resources and opportunities for diverse talent.

In addition, BIPOC audiences emerge as a critical demographic for the industry, with most opening weekend domestic ticket purchases by BIPOC moviegoers for seven of the top 10 and 14 of the top 20 films in 2023. Additionally, films featuring casts where more than 30% of the actors are BIPOC account for nine of the top 10 and 15 of the top 20 films at the global box office.

Global distribution and the importance of intersectionality

The report also sheds light on disparities in global distribution and representation, revealing that top theatrical films with Black and Asian leads are less likely to have distribution in China compared to other racial and ethnic leads. However, films featuring Latinx and multiracial leads are more likely to have distribution in China.

Moreover, the report highlights the importance of intersectionality. Films featuring casts from 41% to 50% BIPOC post the highest median domestic box office, and those with casts from 31% to 40% BIPOC dominate the international markets. These findings challenge the notion that “diversity does not travel,” emphasizing the global appeal of diverse storytelling. As the industry continues to navigate the dynamics of diversity and representation, this report serves as a vital resource for understanding Hollywood’s evolving landscape. Overall, the report offers insights into the state of diversity in Hollywood and the challenges in achieving true representation. Looking closely at this data shows that having various types of people in movies and TV contributes to their popularity, and profitability.

Industry-Research

Media companies can learn about growing audiences from creators

Social platforms and creator-generated content are undeniably popular among audiences. In particular, digital-native platforms and individual creators resonate strongly with younger demographics, who increasingly consume content on mobile devices. A newly released study, 50 Richest Content Creators, highlights this dynamic and the rise of digital content creation. The report examines the earnings, follower count, efficiency, and platform preferences of the top 50 creators, offering a comprehensive view of the growing creator economy.

From June 2022 to June 2023, the top 50 social media content creators collectively earned $700 million. With a combined follower count reaching 2.92 billion, these creators average an impressive $239.68 per 1000 followers. Digital media companies must examine creator-generated content and identify what appeals to their target demographics. Understanding this appeal and relevance is crucial for media businesses to capitalize on new content opportunities.

Top performers and platforms

The study highlights TikTok, YouTube, and Instagram as these influential creators’ primary platforms. TikTok emerges as the frontrunner, commanding 40% of the total followers (1.2 billion), followed by YouTube at 24.8% (724.8 million) and Instagram at 22% (642.2 million). Interestingly, most creators are millennials (56%), followed by Gen Z (40%) and Gen X (just 4%).

Jimmy Donaldson, also known as MrBeast, is the highest-earning creator, earning $82.3 million and having 377 million followers. Others like Rhett & Link, Preston Arsement, and Ryan Kaji follow closely, each earning $35 million and having follower counts of 51 million, 39 million, and 36 million, respectively.

Elliot Tebele, the founder of FJerry LLC and a prominent figure in meme culture, expands beyond content into business ventures ‒ board games and Jaja tequila. He has a total of 25.6 million followers across platforms and earns $1,172.20 per 1,000 followers, amounting to $30 million in earnings in 2023. Tebele’ brand extension and business ventures showcase cross-over opportunities in other business verticals.

Diving into the creator economy

The report highlights key areas for media companies to explore when navigating the creator content ecosystem. Examining each area will help formulate a media brand’s creator content strategy to best align with evolving consumer behaviors and preferences.

  1. Platform preference: Understanding why top content creators favor certain platforms shows the shifting dynamics of social media. User trends, engagement, and content consumption highlight the potential for audience reach and monetization.
  2. Generational trends: Identifying the breakdown of top creators by generation sheds light on the demographics of content creators and their audience. Marketers can use these profiles to target their products and services to specific demographics.
  3. Economic impact: Analyzing content categories will help identify broad and niche categories and new opportunities. This will also provide earnings by top content creators.
  4. Monetization metrics: Analyzing “Earnings per 1K Followers” to provide information on how effectively creators monetize their content and audience. This metric is a clear and powerful sign of a creator’s talent in turning their audience into valuable financial returns because getting the most value from followers is crucial.
  5. Global perspective: While the data predominantly focuses on creators from the U.S. (representing 80% of the top 50 creators), understanding these trends can be crucial for international expansion.

Embracing and leveraging creator content enables media companies to enhance their competitiveness within the digital landscape. Careful analysis, identification, and alignment of appealing creator content can deepen audience engagement and loyalty. Furthermore, creator content presents opportunities for revenue generation through partnerships and sponsorships, providing avenues for diversifying revenue streams.

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