Two of the major broadcast networks are putting their heads together in an effort to gain a competitive edge in an increasingly challenging business environment.
MediaPost reports that executives for Fox and NBC appeared at the Next TV Summit in New York to discuss how their companies are working together toward a strategy that will bring traditional television up to speed in an environment where on-demand, streaming and other non-traditional platforms are increasingly important.
David Levy, executive VP of non-linear revenue for the Fox Networks Group, and Aaron Radin, senior vice president of partnerships and portfolio products for NBCUniversal, discussed the challenges the companies face.
Said Levy: “For television, we are faced with challenges from the left with Facebook and Google on advertising, and on the right we are looking at Netflix, Amazon and ad-free experiences. Our challenge is, how do we create a competitive viewing environment to Netflix and Amazon, and at the same time make enough money off of ad-supported revenue to continue to product quality content?”
MediaPost adds: “At the heart of the problem is the relative inefficiency of traditional ad formats, which don’t necessarily translate to new platforms such as streaming services.”
The report also notes: “The solutions the companies are working on are largely technological, allowing marketers to use automated platforms to transact more efficiently. The strategy also includes improving measurement to go beyond just cost and reach.”