For some years, traditional broadcast businesses have faced significant challenges. Audiences have fragmented and migrated away from traditional linear TV, competition for viewing time has intensified and the production and acquisition of content has become fiercely competitive whilst also increasing in cost.
Competition is relentless and comes in many shapes and sizes. No longer do local broadcasters just have to look over their shoulders at what the other local channels are doing in their market, they have to concern themselves with the global and regional players who are now well and truly in their sphere of influence. There are the global SVOD giants (Netflix, Amazon, Apple), US Studio services (Disney+, Max, Paramount+ etc.) , Social Video platforms (e.g. YouTube, TikTok, Instagram and Twitch) and the growing AVOD and FAST platforms including the likes of Pluto, Tubi, Samsung TV Plus and Amazon’s Freevee.
Economic factors (primarily the depressed advertising market), the US Writer and Actor Strikes, investor pressures and the significant headwinds facing everyone in the content world since early 2022 have added to these challenges. The emergence of the Studio D2C services led to the withdrawal of content from the acquisition market, but with the shift in strategies by Studios throughout 2023 now the broadcasters are becoming a destination for Studio content again as the windowing paradigms shift. Early signs are that they are starting to represent a bigger portion of the second window market, providing an important part of the Studios content monetisation strategies.
With a focus on local original programming, Free TV broadcasters share of acquired premieres has stayed remarkably constant in global markets, representing on average 14% of the market. The transition to SVOD services as a home for acquired premieres started before 2021, now representing the home of almost 70% of the premieres of new season acquired english language programming. However with second windows there are signs that Free TV businesses are increasingly active, using their digital services to offer an increasing number of titles, many post Studio SVOD as Studios are back on the market selling. This year has seen a significant growth in second window activity by Free TV broadcast business, 35% second window premieres in 2024 were by Free TV businesses on their linear channels and/or adjacent digital BVOD services (offering content free with advertising or as a public service broadcaster).
A limited extract of Show Tracker data can illustrate the varied nature of second windows across global markets. As stakeholders all along the value chain work to find synergies and revenues by windowing content. SVOD Originals are finding their way on to Free TV services (both on linear and BVOD), Studios are willingly selling to global SVODs and although rare there are signs of AVOD services getting involved.
Broadcast businesses across global markets have been steadily pushing into digital exploitation for some years now, in some cases launching local SVOD services with unique identities (e.g. Stan in Australia) and in others launching paid tiers of their BVOD service (e.g. CBC Gem Premium in Canada). What is clear is that digital services are a massive priority for broadcasters, only 9% of First and Second Window premieres in 2024 have been offered via linear broadcast with basic catch-up (episodic offers that don’t reach Box Set form). 46% of premieres are linear with accompanying Box Sets, with 28% in 2024 released on OTT services only as BVOD with no accompanying linear transmission. Perhaps notably, given the focus on the AVOD model as SVOD has stalled in many markets, we see a steady decline in release on broadcaster premium tier SVOD services with the focus for some leaning towards the AVOD model after perhaps finding the SVOD model more challenging. In some cases this may be down to the failure of a service completely (E.g. Salto in France) and in others it may be down to priorities being shifted towards offering viewers something that is free at the point of access rather than on a paid tier.
Detailed Show Tracker data shows that from 2023 to 2024 only 12% premieres were with either no catch-up or just the basic offer (7 days, 14 days or Rolling 5 episodes). 39% premieres were with enhanced catch-up, 20% with the full Box Set dropped at the same time as the premiere on linear (In-Season Box Set) and 19% building up to a Box Set by adding an episode with every linear transmission (In-Season-Stack). Only 20% premieres were as part of a paid tier. In some cases these represented Premium tiers for the broadcaster AVOD services (e.g. CBC Gem Premium) or in other the SVOD business whilst related to the broadcaster operate a distinct Local SVOD service (e.g. Nine Network’s Stan in Australia). 28% premieres were only in Box Set form, dropped exclusively on the Broadcasters digital service with no accompanying linear transmission.
.svg)
