Maximizing Content Reach: How Broadcasters Are Leveraging AI To Unlock Global Growth

NeuralSpace

Explore key trends and challenges shaping the media industry in 2024, and three innovative ways in which AI is unlocking global growth for streaming services.

Key takeaways:

  • Streaming services are navigating a tough year with increasing subscriber churn and budget-conscious consumers.
  • There's a gap between limited content supply and the growing demand for new, engaging content.
  • AI advancements are streamlining content localization, making global outreach more feasible and efficient.
  • Growth opportunities lie in localizing back catalogs, penetrating new markets, and boosting advertising revenue.

Introduction:

Streaming services have changed how the world consumes media, driving demand for international content. From Bollywood, to anime and Korean hits like Squid Game - Netflix's most-watched program in 94 countries - audiences are embracing a world of entertainment. Broadcasters now face the challenge and opportunity of globalizing their offerings. The good news? Advancements in AI are streamlining localization, making it faster and more cost-effective. This shift enables broadcasters to satisfy the diverse preferences of a connected global audience, ensuring access to content in multiple languages. It's a strategic move: satisfying viewer demand while opening up new opportunities for growth.  

Are we still in a golden age for SVOD?

Global Subscription Video on Demand (SVOD) customers will increase by 321m between 2023 and 2029 to reach 1.79bn – showing continued growth, according to the latest report from Digital TV Research. Leading platforms like Netflix are expected to retain their dominance, with projected revenues of $32 billion by 2028. This positive trend is fueled by international expansion and the ongoing transition of pay-TV subscribers to Over-The-Top (OTT) services. Yet, in the midst of this promising growth story, broadcasters are navigating challenging waters. 

Subscriber churn: A constant need for high-quality content

Consumers, mindful of their spending, closely tie the value of their subscriptions to the availability of fresh and engaging content. This prompts them to sign up, binge-watch their favorite shows, and cancel their subscriptions as soon as they've satisfied their appetite for content or in an effort to manage expenses. With 'serial churners' accounting for one-third of premium SVOD sign-ups, securing a steady stream of high-quality content has become essential for retaining an audience that's increasingly transient.

Source: StreamTVInsider

Intense competition for content

The pursuit for new content is facing significant hurdles, with production costs climbing. Rising interest rates, the Covid-19 pandemic, and the Hollywood writers strike are putting pressure on the supply chain. At the same time, viewer demand for fresh content is pushing licensing costs higher, intensifying competition in the market.

Maximizing growth opportunities through globalization 

Facing these challenges, the path to growth is through strategic content localization. By tailoring content to various regions, broadcasters can unlock three major growth avenues: Boosting advertising revenue, tapping into new demand for back catalog content, and breaking into fresh markets.

Boosting revenue with AVOD (Advertising Video on Demand): 

Advertising Video on Demand (AVOD) and Free Ad-Supported Streaming TV (FAST) models have emerged as reliable, economy-proof monetization strategies for streaming services. 

Platforms such as Crackle, Pluto, and Tubi have demonstrated the effectiveness of ad-supported content. Notably, major players like Disney+ observe that 50% of new subscribers opt for the ad-supported option, while Netflix's introduction of an ad-supported tier has attracted 15 million active users, signaling a notable shift in streaming dynamics. This model is especially attractive in achieving success in emerging markets, offering consumers an affordable viewing alternative that's quickly becoming the norm.

Expanding globally, broadcasters can capture a larger, more diverse audience, making their platforms prime targets for advertisers aiming for international reach. By localizing content for markets with large viewership potential, broadcasters can significantly increase advertising revenue potential, maximizing their return on investment in content production.

Source: Deloitte

Source: Deloitte

Reviving back catalog classics for new audiences: 

Updating back catalog shows for new audiences, with OTT-ready subtitles, presents an opportunity to showcase timeless stories on the small screen again, unlocking hidden value from content archives. A major hurdle in this process has been the lack of scripts for content pre-dating OTT distribution, turning the task of subtitling and localization into a time consuming, manual endeavor.

Thanks to recent advancements in AI technology, it’s now possible to automate script generation from video content. By leveraging AI in their localization workflow, publishers can offer a more diverse selection of content to viewers, and maximize the revenue potential of existing content assets.

Making a Mark in New Markets: 

Consumer appetite for international content is on a steep rise, driven by the breakout success of specific genres and shows, such as K-dramas and anime, which have cultivated enthusiastic fan bases around the world. 

In countries like Saudi Arabia, the demand for international entertainment is surging. The Kingdom's growing fondness for content from Bollywood and Hallyuwood highlights the cross-border appeal of compelling narratives, regardless of their origin.

Similarly, in India, the advent of OTT platforms has significantly widened the scope of interest among viewers for foreign content, especially Korean and Turkish dramas, celebrated for their distinctive storytelling styles. Hits like Parasite from Korea, alongside Turkish series such as Feriha, have captivated Indian audiences, reflecting a broader global trend. 

This is mirrored in the growth of content consumption on platforms like MX Player, which has seen a fivefold increase in Korean and a twofold increase in Turkish content viewership over 18 months - signalling a sustained interest in global storytelling.

LocAI: Media Localization For The AI Era

Connecting with international audiences through content localization is key to growth in this challenging industry. Artificial Intelligence is transforming how content is delivered globally, offering a blend of productivity enhancements and cost reductions that are hard to ignore. What used to be a post-production challenge - subtitling - is now a strategic advantage, enabling you to significantly widen your audience reach and boost revenue.

LocAI brings teams together in one platform, combining advanced editing features with project management tools, simplifying every step of the localization process. With LocAI, you own your AI model, ensuring that your intellectual property never leaves your ecosystem. Plus, it gets smarter with every use, finetuning its accuracy based on your data and feedback. This adaptability ensures that as your audience develops and your content requirements evolve, LocAI grows with you, future-proofing your localization workflow.

Visit our website to learn more or contact our sales team at sales@neuralspace.ai for a personalized demo.

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