According to the 2021 figures announced by Deloitte, digital media took the first place despite the increase in the share of television in the advertising pie. The share of digital in the pie has exceeded 46% and approached $500M. About $500M of the share is not direct advertisements but digital projects and productions.
“The end of television is very close”
Reed Hastings, CEO of Netflix, claims that the end of television is very close. After all, the rules of marketing and communication on digital platforms are not as familiar as on TV yet. The digital audience does not like the classical advertising concept, nor does it give a premium to content that smells of marketing. This transformation has brought a new candidate to the throne of advertising agencies: Digital content and production companies.
The global digital content market is expected to reach $50 billion in 2026. The monthly turnover of content producers is expected to vary between 5 and $50.000. Digital platforms have changed the game in terms of content and infrastructure. Content can be produced on different themes. It is the transparency and clarity of the data in digital that attract the attention of the advertiser so much. In this way, advertisers do not have to bear the cost of reaching millions of people in order to reach their target audience, and they can reach their target audience at much more affordable costs by descending more vertically in terms of content by making use of audience data.
Brands are investing in full control
With digital platforms, it is now possible for content creators to produce their own media. Previously, a brand had to bear serious costs in order to broadcast the content produced by a production company on a TV channel. Now they can create their own content channels and manage their own media and audiences on channels such as YouTube. Many brands are shifting their mass media investments to their own content investments so that they can keep their investments in full control, from the quality of the work to its reach.
With the development of cloud computing technologies, it is now very easy to create a Netflix-like business. A streaming service, simply defined as a streaming service, is an entertainment digital platform that broadcasts video content on demand. Video streaming is designed to fill the gaps of earlier broadcast formats. Back then, all we had was cable and satellite television, where users couldn’t request the show they wanted to watch. Today, streaming platforms are popular, allowing people to watch and even download content whenever they want and then watch it offline.
Disney+ vs Mubi – What makes the difference?
The most important thing needed to build a good streaming service business is niche. Today, Disney+ is a platform dominated by superhero movies, series, and cartoons. On the other hand, Mubi managed to become the first choice of festival cinema lovers. Setting up your business model accordingly will also help the companies significantly in brand awareness and target audience issues in the future.
The streaming market is getting more and more competitive every day. In order to be able to take place and hold on in this market, companies need to determine their target audience correctly and organize their content accordingly. Of course, another issue that should not be forgotten has the capacity to serve the whole world. When companies have millions of subscribers all over the world, it is very important to provide 24/7 service without interruption.
Network, CDN, and cybersecurity
After dealing with more business-related parts such as subscription and income models, it’s time for technical infrastructure. For this, it is important to have good cloud hosting and computing architecture. Network connectivity also needs to be good and strong. For this, getting a good CDN service is also a must. On the other hand, security is now one of today’s most important issues. Apart from the fact that your platform must provide effective protection against cyber security attacks, the content must also be protected from breaches and data theft.
In addition, providing restrictions such as whether some content can be watched or not according to the country is important in preventing potential legal problems or income models. In addition, the fact that the payment infrastructure service partners are fast and secure is another issue that needs to be evaluated. After creating all these technical infrastructure solutions perfectly, companies can take their places on the stage.
Please keep in mind that the most important condition of being a digital content producer is to create the right IT infrastructure and work with good cloud computing service providers.