A Note from Mansha Daswani: Chasing Silver Linings

It’s hard not to get disheartened by some of the depressing stats we’ve seen over the last year about commissioning downturns and show cancellations, unemployment rates and bankruptcies; the industry’s sudden whiplash from peak TV to not has hurt everyone across the ecosystem.

And yet, in the numerous conversations we had with executives from every sector, the media business’s return to pragmatism is creating opportunities for a renewed emphasis on collaboration and new approaches to making content on a budget that makes sense.

“Most of the marketplace is looking for value, which does not mean only less expensive content,” Fernando Szew, the head of FOX Entertainment Studios, told me for an interview in this edition about the shifts taking place in the industry. “It’s about understanding the audience, the purpose of the content and what other aspects you can build to monetize further. The world of content distribution has evolved, and content monetization has continued to evolve. You need to have an eye on delivering high-quality content—that doesn’t mean you have to do it at all costs. You have to know the right balance between quality and [efficiency] and where to spend the money.”

Jon Feltheimer, CEO of Lionsgate, in conversation with World Screen’s Anna Carugati in this edition, discussed how that independent studio is successfully navigating the new normal, noting, “We have to work harder for every deal, the bar is set a little higher for each of the shows we make, and we have to keep finding new buyers to take the place of buyers leaving the marketplace.”

Similarly, Elisabeth d’Arvieu, CEO of Mediawan Pictures, spoke to me about how that European studio’s model is suited to the current market conditions, stating, “We have all the tools in Europe to tell stories at a very ambitious level, with the same quality, while staying within a controlled budget. We also have a soft money system that is a significant advantage for producers.”

The importance of soft money and innovative financing tools is covered in our MIPCOM editions of TV Drama and TV Real, while in TV Kids and TV Formats, we explore the booming demand for known IP and the subsequent chase for the next big thing. Across every genre, we touch on the rising prominence of AVOD and FAST, the subject of our special report in this edition.

Subscription fatigue is real, but as it turns out, consumers are fairly loyal to their preferred SVODs. The leading SVOD streamers in the U.S. have eclipsed live TV as the “first place to turn to watch,” according to a study from Hub Entertainment Research, Decoding the Default. The big-five SVOD services (Netflix, Prime Video, Disney+, Hulu and Max) are the first choice for 46 percent of viewers, up from 35 percent in 2021. Live TV has fallen from 53 percent in 2021 to 38 percent this year. For those defaulting to a big-five service, 42 percent say they do so for their favorite shows. For those defaulting to live TV, 50 percent say it’s for news and sports. Of those choosing a FAST channel as their default viewing option, 48 percent say it’s for the variety.

FAST, with its roots in the good old days of discovery via channel surfing, is largely driven by known IP, with EPGs built around genres—you can get lost in a rabbit hole of nonstop true crime or a never-ending dose of Gordon Ramsay. The key, of course, is in having an interface that is easy to navigate and seamlessly leads you to the shows you want. Jeff Shultz at Paramount Streaming talked to me about the refinements of the Pluto TV interface that have helped drive gains for the service, which marks its tenth anniversary this year. And across our interviews with programmers of AVOD and FAST services, we heard about AI’s crucial role in helping solve the discovery conundrum and improve navigation for consumers scrolling through a sea of options to find something to watch.

“FAST discoverability is a big challenge,” says Thanasis Tsiris, senior VP of distribution and partnerships at Free TV Networks. “Products differ across all smart TVs and different services. Channels are often placed in different numbers in different verticals. Depending on the platform, there may not even be a search functionality. Sometimes, that metadata is not well-formed with older, free back catalog content. If AI can provide a solution that makes that much more personalized and easier for customers, and you cut down on that endless scrolling, that’s huge.”

The problem with recommendation algorithms, of course, is that you are rarely surprised; if all you’re directed to is similar to what you’ve already watched, how do you ever discover something new? Can someone invent the anti-recommendation interface that will let me stumble on something great even though it’s not in whatever wheelhouse the algorithm tells me I’m in? Granted, I don’t have enough time to watch the shows I want to watch, so I perhaps don’t need extra suggestions, but given we all have a world of content at our fingertips, it seems a shame that we so often restrict ourselves to the narrow choices the machines dictate for us.