Advertising Swag: How the Industry got its flow back

Companies that fear evolution within the entertainment industry are destined to fail, according to Haven & Lotz. It is imperative for a company to grow and evolve in order to stay fresh and on top of the competition. This is as true in any other industry; recently Microsoft failed to take footing in the handheld market and is now drifting out of relevance. Entertainment companies are dependent on shifts in technologies as they provide new avenues to distribute content and programming.

Recent technology not only provides entertainment companies alternate routes to distribute their programming, outlets like Hulu, Netflix and DVR are now the most direct route to consumers. While instant streaming at any convenient time is great for the consumer, advertisers are upset about the loss of live audiences. Subjecting a live audience to uninterrupted ads has been the favorite approach but now that the consumer can fast forward and skip through ads, advertisers are understandably worried.

Not only is broadcast television competing with sites like Netflix, it’s also battling other leisure entertainment activities such as video games and websites. Now-a-days more people can be found consuming entertainment through computers and handhelds than television. MTV realized this shift in 2008 when their show The Hills not only premiered to 3.7 million viewers, but also reached another million viewers and a spot on iTunes top ten downloads over the following three days.

This embrace of the changes in technological distribution is what Curtin calls “Matrix Media.” Entertainment companies that are able to overcome their fear of the new technologies will find that these new distribution plans may offer different approaches to advertise to the consumers. Recently there has been an increase in target advertising online; from Facebook to Amazon companies have taken note of its effectiveness.

Netflix is now able to compile a list of shows you’ve watched (and possibly rated) and can now suggest other shows or films based on your preference. Hulu (who also uses this practice) asks if you like or dislike an ad, takes note and narrows you down to scientific equation. I can’t even turn on my Xbox without getting advertised to and I pay a premium for that service! While it may be annoying to some you have to give the industry credit for hitting you with ads you may actually enjoy, unlike the constant Sear’s air-conditioning commercials that flooded Nickelodeon in the 90s. A 6 year old has no interest in an air conditioning unit for a house.

Shifts and Switches

Michael Curtin describes the shift from the major networks provided a wide audience with largely popular (and somewhat neutral) shows to an array of specified shows over many cable networks as the development of the “matrix media”.  “Matrix media” is the development of modern television systems thanks to the invention of a matrix switch. A matrix switch, or “an array of switches” (p. 13), has high bandwidth capabilities for an assortment of people watching different programs. Each individual will still experience full bandwidth capabilities because transmitted information is broken down and reassembled after traveling to the individual’s screen. Essentially, this means that television stations now provide viewers with hundreds of options simultaneously, to more specialized audiences, because of the changes in production due to this technological shift.

The television industries both embraced possibilities provided by this technological shift and feared the potential loss of power it could create. The major companies and networks acquired smaller stations, such as NBC’s ownership of Bravo, to help capture the audiences that their more neutral programming missed. Previously, shows that appeared to attract the widest audience received airtime, in order to gain the highest ratings, and many audiences were excluded. However, smaller stations could attract niche markets and not require as high ratings to remain on the air and profitable. On the other hand, networks are resistant of this shift because it reduces the number of people watching prime time network television. In combination with the invention of DVRs and online viewing sites, show ratings for networks have dropped and many internal industry struggles have revolved around these changes.

These technological shifts have forced the industry to change, although it might be hesitantly. According to TiVo, only a third of television today is consumed during it’s live broadcast. This means that people are generally not watching advertisements in a traditional way. They have to be more appealing to entice an audience, with the ability to skip all ads, to watch or remember their brand while fast-forwarding. Also, companies have tried to make viewing experiences more interactive, largely through websites, and create shows people feel the need to watch live such as American Idol! result and performance shows. While networks have attempting to change in some regards, their continued lowered ratings (even in regards to this seasons Idol) implies there may be more room to improve, or lowered ratings may be an irreversible trend and they may simply have to adapt their advertising style farther.

Matrix Media: A Necessity in Current Society

In chapter 1, “Matrix media,” Michael Curtin describes a matrix media as a media system where corporations provide media in a variety of forms, allowing consumers to interact with and intake the media at any time.  This style of media doesn’t aim at mass audiences at once, but rather uses a large supply of outlets for their product adding up viewers among them.  An example of matrix media that Curtin uses is that of “Top Chef,” a cable show.  This particular show can be viewed on cable during its’ allotted show time or on their website for a period of weeks, can be purchased on ITunes, has video games and blogs for dedicated fans to play and read on the internet, and lastly has mobile applications so viewers can get information anywhere on their phone discretely and quickly.  This style of media, matrix media, has not been the dominant style forever.

            Technological shifts in the recent past, along with audience members viewing tendencies, guided the media industry into a matrix media set-up.  The continually improving video game market was one technological shift that had an impact.  As video games continually become more advanced, many consumers began to choose to spend their time playing video games over watching television.  Curtin states that the day after Super Smash Bros Brawl was released, television ratings dropped 14 percent.  Corporations were forced to make their media more interactive, maybe with fun games or blogs, and have more flexible availability in order to remain competitive, due to the fact that video games were interactive and available to be played at any time.

           Another technological shift was the increasing popularity of the internet.   The internet became a tool that almost everyone used daily, and with programmers creating websites where television shows and movies were free to watch illegally, it had a staggering effect on television ratings.  Thus corporations were forced to supply better, “professional” versions of their shows online that were able to compete with the illegal sites due to better quality and good availability.

         Lastly, the obsession with smart phones has led to very profitable opportunities involving mobile devices.  Curtin estimates that this market will be worth around fifty billion to corporations in the media market.  Thus, due to the advancement of video games, the increased popularity of the internet, and the creation of the smart phone, it became highly advantageous, if not necessary, for the media industry to become a matrix media.