Media Business

New Report Suggests Artificial Intelligence Could Disrupt Challenging Economics Within The Media Industry

“The report highlights the stable demand and exponential growth in supply as critical factors.”

Published

12 months ago

May 31, 2023

Generative AI’s most significant effect on prominent content producers and distributors lies not in disrupting the media creation process but in empowering their strongest rivals: YouTube and TikTok content creators. These platforms now have access to additional tools that enable them to penetrate further the daily video consumption that the media industry fiercely competes for.

In a newly released report titled “AI and Competitive Advantage in Media” from the studio-funded think tank ETC, generative AI is identified as a potential disruptor of the already challenging economics within the media industry. The report highlights the stable demand (limited to 24 hours a day) and the exponential growth in supply as critical factors.

Yves Bergquist, ETC’s resident data scientist, and AI expert, draws a parallel between the current developments in the media industry and the automation of manufacturing, emphasizing the shift towards making the production process computable, similar to what occurred in the manufacturing sector.

The concept of content being “computable” refers to its production in large volumes and its ability to be processed by machines. This entails every aspect of content creation, distribution, and audience feedback is transformed into data that can be analyzed and dissected.

Unlike traditional media companies, which produce content linearly and as individual entities, they are not inherently “computable.” Their content is often scarce, whole, long-form, and lacks the structured format required for easy manipulation by online audiences or machine analysis.

However, studios and streaming platforms will need to adapt and embrace this computable approach to remain relevant in the future.

ETC breaks down the creative process into three components. Yves Bergquist refers to the initial phase of generating ideas and understanding audience preferences as “zeitgeist intelligence.”

Next, we have the central aspect of the creative process, wherein creators establish their unique voices and make crucial strategic choices regarding the product they intend to develop.

Subsequently, the actual production of the product takes place.

Generative AI primarily affects this final phase of production. However, automating the production process enhances the significance of zeitgeist-sensing and creative decision-making and provides creative decision-makers with tools for rapid, cost-effective tinkering, experimentation, and prototyping.

Ryan Hedrick

Ryan Hedrick works for WIBC in Indianapolis as a Morning News Anchor/Digital Content Producer. Prior to moving to Indy, he served as Assistant Program Director and Co-Host of the Morning News Express at WFMD. His career also includes stints at News Talk 103.7 FM in Chambersburg, PA, Sirius XM in Washington D.C., WBEN in Buffalo, NY, and WIBW-AM in Topeka KS where he earned the Kansas Association of Broadcasters (KAB) award for Major Market enterprise reporting in 2016. To connect with Ryan, find him on Twitter @SureToCover.

Up Next

AM Radio Congressional Hearing to Take Place on June 6

Don't Miss

WARC Projects YouTube Revenue Will Grow 4% This Year

Click to comment

Media Business

SPECai Welcomes Adams Radio Group and Southern Stoen Communications as New Customers

The two radio companies join other broadcasters like Connoisseur Media, Summit Media, and Magnum Communications at adopting the product.

Published

2 days ago

May 15, 2024

BNM Staff

SPECai, the artificial intelligence product created in conjunction with ENCO Systems, Benztown, and Compass Media Networks, has inked a deal with Adams Radio Group and Southern Stone Communications to use the technology.

Southern Stone Communications will utilize the product in Jackson, TN; Valdosta, GA; Daytona Beach, FL; and Huntsville, AL. Meanwhile, Adams Radio Group will utilize it at stations in Tallahassee, FL; Las Cruces, NM; Valparaiso, IN; and Ft. Wayne, IN.

“SPECai is absolutely transformative. I was amazed by the blend of technology and creativity. Within minutes, our sellers are able to create top-notch spec spots,” said Adams Radio Group Northern Indiana Vice President and Market Manager Jennifer Figg. “The interface is easy and intuitive, saving us time and making the production process more efficient. Each spot is crafted with a professional touch. We only just started and have already closed new business.”

“I was pleasantly surprised at how quickly our sellers could create a great sounding commercial, with no help from production, and use it to help close new business,” added Southern Stone Communications Vice President of Sales and General Manager Chip Thomas. “I would highly recommend this product for any sales team looking for creative ways to close more business.”

The two radio companies join other broadcasters like Connoisseur Media, Summit Media, and Magnum Communications in adopting the product.

BNM Staff

Media Business

Women Prefer AM/FM Radio to Everything But Their Phone, New Study Shows

Traditional radio eclipsed Amazon (43%), Netflix (40%), Apple (26%), Spotify (26%) and TikTok (24%) among other strong digital audio and video brands.

Published

3 days ago

May 14, 2024

BNM Staff

As more and more listeners spend time with digital audio, the role of AM/FM Radio is questioned. However, according to a new study, the medium is still a strong one, especially with women.

New metrics released by Westwood One’s Audio Active Group shows that a study of 1001 women between 15-64 shows that 46% said they “love” their favorite AM/FM Radio station. While 51% said they “love” their mobile phone as the top vote-getter, terrestrial radio came in second.

Traditional radio eclipsed Amazon (43%), Netflix (40%), Apple (26%), Spotify (26%) and TikTok (24%) among other strong digital audio and video brands. Radio, however, dropped to 22% when respondents were asked about their love of the medium in general and not their favorite specific stations.

While the study shows women “love” radio, they admitted in their responses that the medium doesn’t often mesh with the busy lifestyle they currently live between family, relationships, and living a healthy lifestyle.

Also, nearly 60% of women agreed that “Today’s music is not as good as it was years ago.” Another factor of decreased listening is that women find the number of commercials unbearable and believe many ads are “annoying.”

BNM Staff

Media Business

Nielsen Debuts The Media Distributor Gauge Showing TV Audience By Company

In the first report of the new gauge, 14 companies saw a 1.0% share or great of the total TV usage.

Published

4 days ago

May 14, 2024

BNM Staff

Nielsen has unveiled The Media Distributor Gauge, which will provide information on television audience size on a per-company basis.

The new measurement category became a necessity as streaming television continues to grow with many broadcast and cable networks utilizing the new technology as an alternate distribution method.

Coinciding with The Gauge, which measures the method by which viewers watch television, The Media Distributor Gauge is the insight into measuring an expanding and changing field.

“With more programs available across platforms, it’s vital for creators, advertisers, and the industry at large to understand what and where audiences are watching,” said Karthik Rao, CEO of Nielsen. “The Media Distributor Gauge is a perfect complement to The Gauge and serves as the first convergent TV comparison of its kind. Together, these reports paint the most complete picture of TV viewing today, which is critical as we head into the Upfront.”

In the first report of the new gauge, 14 companies saw a 1.0% share or great of the total TV usage.

The Walt Disney Company accounted for 11.5% of TV, as 42% of that figure came from Disney+ and Hulu.

YouTube (9.6%), NBCUniversal (8.9%), Paramount (8.8%), Warner Bros. Discovery (8.1%), Netflix (7.6%), and FOX (6.1%) all finished between 5-10% of the total viewing share.

BNM Staff