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Neil:“ We’ re in a content arms race”
Media commentator Andrew Neil
( below) has suggested that SVoD services such as Netflix and Amazon Prime are now better placed to be major disruptors in the broadcasting industry, a scenario he had discounted a year previously.
Delivering an Industry Overview at the SES Satellite Monitor Conference in London, Neil admitted that at the 2016 event, he suggested that existing players were well placed to resist such disruption, but noted the large
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growth of subscribers to both services and the budgets available for content acquisition and origination.“ We now live in a content arms race,” he declared.
Noting the success of Netflix drama, The Crown, he suggested that its production budgets and values were“ the shape of drama to come”, with TV versions of movie franchises having production budgets of between £ 10 million( and £ 15 million per episode.“ People now expect and are given cinematic
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quality,” he added.“ You also get character development you can’ t get in a two-hour movie. That’ s a major challenge for traditional broadcasters,” he suggested, acknowledging that in the US, budgets were higher than for UK channels.
“ Their traditional revenue streams such as licence fees and advertising are limited,” he said, pointing out that critically-acclaimed BBC drama The Night Manager was limited to an eight-episode run compared with much longer seasons for top US dramas.“ That’ s not enough anymore.”
“ The insurgents will eat your lunch,” he warned‘ traditional broadcasters, noting that Netflix had outbid Channel 4 to screen popular drama Black Mirror.“ It may even bid for Bake Off in the future,” he added.
In terms of the wider pay-TV industry, he warned that“ the age of paying for 1,000 channels is coming to an end. We’ ve got away with it for so long.” He suggested that cordcutting was a more established practice in the US compared with the UK.
He also warned of the growing threat to British ownership of broadcasters, with Sky likely to become part of 21 st Century Fox, subject to regulatory clearance, with Channel 5 already American owned.“ It’ s different being a wholly-owned subsidiary, you can’ t make your own decisions anymore.” As such, he suggested that Sky may not prove to be quite the challenger for the insurgents it once was.
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Talpa takes control of SBS Broadcasting
Dutch media group Talpa Holding has acquired a 67 % stake in Dutch commercial broadcaster SBS Broadcasting from Nordic media group Sanoma to takes full ownership of TV-stations SBS6, NET5, Veronica and SBS9.
SBS Broadcasting will complement Talpa in further developing a new Dutch multimedia company with strong positions in television, radio, print and online. As part of the transaction, Talpa’ s stake in the TV guide business Veronica Uitgeverij will be sold to Sanoma.
Talpa owner John de Mol( right) considers the acquisition as an important step towards building a new Dutch multimedia company, suggesting that achieving full ownership of SBS represents a“ unique” opportunity as one of only two free-to-air commercial TV groups in the Netherlands.
“ I firmly believe in a strong Dutch multimedia company that is flexible enough to respond to the changing media landscape, which is primarily a consequence of rapid technological developments,” declared de Mol.“ SBS is a unique media asset which will be a key link in the new multimedia company. Access to innovative content and other platforms will be an important addition. The proposition that follows is interesting for viewers, readers, listeners, consumers and advertisers.”
“ The acquisition of SBS is a fantastic step towards building a Dutch multimedia company. After the inclusion of SBS, we will focus on further investments in OTT, Print, Online, Data and Concepts,” added Pim Schmitz, CEO Talpa Holding.
Talpa Holding is the holding company of de Mol’ s media activities. The company was founded in 2005 and positioned itself as a‘ full service’ content company, where creation, production, distribution and broadcasting on various platforms form the foundation of this company.
In addition to SBS Broadcasting, Talpa Holding is, among others, owner of Talpa Radio, the largest music entertainment company in the Netherlands consisting of the channels 538, Radio 10, Sky Radio and Radio Veronica.
Currently Talpa Media, formerly part of Talpa Holding, was acquired by UK commercial broadcaster ITV in 2015. Talpa Media continues to be responsible for the management of the company and thereby the creation and production of television formats and concepts. The biggest production is The Voice, which first aired in 2010. Currently over 65 local productions of this programme exist, broadcast in more than 180 countries. de Mol was founder of Endemol the creator of a number of global formats, such as Big Brother, Deal or No Deal and The Voice.
12 EUROMEDIA