Public broadcasters threatened by on-demand services
Ajit Niranjan
November 3, 2017
With shows such as Sherlock and Strictly under 'serious threat' from streaming services, even media heavyweights such as the BBC are struggling to stay relevant. Why are public broadcasters so gloomy?
The modern remake of Sir Arthur Conan Doyle's iconic detective, BBC's "Sherlock" has been a huge hit worldwideImage: BBC/Hartswood Films
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From the breathtaking vistas of a David Attenborough documentary to the regal cheekbones Benedict Cumberbatch flaunts in Sherlock, a modern remake of Arthur Conan Doyle's hit detective series, high-end BBC productions have made waves far beyond the British Isles.
But as viewers increasingly switch their smartphones on — and their televisions off — it seems even the most successful of public broadcasters are struggling to stay afloat.
"We have to face the reality that the British content we value and rely upon is under serious threat," BBC Director-General Tony Hall warned on Thursday evening. He cited "worrying" findings by consultants Mediatique, who estimate the world's oldest broadcaster is facing a funding shortfall of $653m (500m pounds, 563m euros) a year over the next decade.
Hall fears home-grown shows including Sherlock and Strictly Come Dancing will lose out to competition from streaming services provided by tech giants.
In recent years Netflix, Amazon and Apple have all launched video streaming services that allow for on-demand consumption. Users pay a subscription to access videos, which are then ready to watch at any time.
BBC Director-General Tony Hall says it's time to face reality about streaming servicesImage: Leon Neal/AFP/Getty Images
Money matters
Most public broadcasters transmit their shows at set times to television or radio sets. Though some have introduced catch-up services online, most of their content is viewed live.
In Europe these are funded largely by license fees, paid by each household in possession of a TV.
The BBC, which rejected calls to introduce a voluntary subscription fee for its services in 2014, draws its revenues from both license fees and the profits of its commercial arm, the BBC World Service.
Similar set-ups exist across the continent. In France, Germany and Italy, government grants or commercial activities — in certain cases also including advertising — supplement the main source of broadcaster revenue: license fees.
This funding model has served them well. Public broadcasters in Europe play a "central" role in the media landscape, according to analysis from market research firm IHS TV Intelligence. "Even in 2015, BBC1, Italy’s Rai 1 and Germany’s ZDF were the most-viewed channels in their home markets."
IFA 2017: This is how our digital future will look
Our homes are becoming increasingly smarter, equipped with refrigerators with built-in cameras, transparent TVs and household appliances that hear voice commands. These trends and much more at Berlin's IFA trade show.
Image: picture-alliance/dpa/K. Nietfeld
A vision of the future
A major trend at the 2017 IFA consumer electronics trade fair in Berlin is virtual reality. It is even being touted as "part of the future of television," according to Kay Meseberg from TV broadcaster Arte. Newly developed 360-degree cameras should ensure better quality for users and be able to capture memorable panorama moments forever.
Image: picture-alliance/dpa/K. Nietfeld
A generation of digital natives
The field of entertainment electronics continues to grow. Bluetooth earbuds, smart speakers and much more are on offer at the fair. Above all, the idea of voice-controlled devices is taking hold. Who wouldn't want an intelligent assistant that makes work easier? Many devices - especially loudspeakers - are now equipped with voice assistance such as Siri or Alexa.
Image: picture-alliance/dpa/K. Nietfeld
The smart home
It was only in 2008 that household appliances were exhibited at IFA for the first time. Now it is impossible to imagine the electronics show without them. After all, digitalization has already started taking over daily housework. The "smart home," in which various household appliances are networked. is being constantly expanded to include new possibilities.
Image: Getty Images/AFP/T. Schwarz
Transparency in television
A seemingly simple pane of glass which functions as a transparent display with a touch function included - is this the future of television? The odds look good for such TVs with the new "frame function." As soon as these popular devices are turned off, the screen turns into the work of art of your choice and can decorate any room of the house.
Image: Getty Images/AFP/T. Schwarz
The Fairphone 2
Almost everyone today has a smartphone. Yet the Fairphone stands out in terms of sustainability and longevity. One of its best features is the ability to easily replace broken parts. But the mobile phone manufacturer is also trying to improve the working conditions among its suppliers besides helping the environment by reducing waste.
Image: Fairphone
Flying objects with top features
Unsurprisingly, many different drone models can also be seen flying through the air at the show in Berlin. Exhibitors are now trying to lure customers with promises of longer flight times and quieter motors. Often, these small flying objects are equipped with a special camera which can take spectacular high-quality aerial photographs.
Image: picture-alliance/dpa/K. Nietfeld
The future of fitness
Fitness trackers and health apps are still at the digital forefront. Smart watches can count your steps and the calories burnt, while also assessing the quality of your sleep or warning against excessive periods of inactivity. But a big cultural breakthrough of these digital helpers is still waiting to happen - even so, many new models are being displayed at the fair.
Image: Getty Images/S. Gallup
Putting your best foot forward
This year, companies are giving their all with spectacular shows in order to leave a strong impression on visitors. But with 1,800 exhibitors this is not an easy task. Nonetheless, the IFA fair is still regarded as a trendsetter for consumer electronics, even though it first opened in 1924. This year's show runs until September 6 at Berlin's trade fair grounds.
Image: Reuters/H. Hanschke
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Changing demographics
But as audiences change, broadcasters are facing pressures to adapt.
The on-demand viewing model is shaking up traditional broadcasting around the globeImage: picture alliance/AP Photo/E.Amendola
"Public service broadcasters remain at the heart of the audience experience," a study by the British telecommunications regulator Ofcom found in July this year, despite a "widening gap" between age groups. Teenagers and children are watching a third less television on traditional sets than they were in 2010.
It found young people are increasingly turning to on-demand television services for entertainment instead.
Writing in German newspaper Tagesspiegel on Friday, media expert Hans Hege argued for diverting 5% of license fee revenues away from broadcasters and towards an innovation agency, on the grounds that "a central goal" of public service institutions is no longer being fulfilled: "to reach the entire population".
"Even citizens who do not use public broadcasters have to pay for them," wrote Hege. "They contribute to the development of opinion and political will, and so it must be a goal to reach them too."
