Broadcast media is one of the most widely used forms of communication in modern society. It is considered as the most effective source of news and information. However, it is not for everyone. Broadcasting can be highly expensive, and not every product can be advertised through this medium. However, it has the potential to reach a large number of consumers and is an excellent source of brand advertising.
As more consumers tune in to television each day, broadcasters are facing tough competition. Moreover, as more consumers use their smartphones and tablets to view content, broadcasters have to compete with new entrants. Today, broadcasters are facing tough competition from telcos, mobile operators, and even IP providers. These new players are transforming into program distributors and broadcasters.
Broadcasters are adapting to the new demands posed by connected devices. Advanced broadcasting technologies are helping consumers experience more immersive and interactive content. But these innovations also place huge demands on wired infrastructure. Broadcasting applications are increasingly reliant on fiber connectivity because it provides fast download speeds and maintains signal strength over long distances.
Another interesting development in the broadcast industry is the growth of retransmissions. As the market grows and retransmission revenues continue to rise, broadcasters are diversifying their revenue streams. While ATSC 3.0 and bit pooling are close to becoming a reality, Nexstar Media’s Perry Sook has emphasized that it could take up to five years before revenues from these technologies start to materialize. Nonetheless, in the long run, spectrum revenue could easily equal retransmission revenues.