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4.3 - Survival in the new environment The television industry advertising and marketing know they face a huge change and they both develop strategies to respond to the crisis. The advertising will have to invent new formats and finding customers to new platforms. Televisions cut spending and seek new revenue sources (Sales and Gluck, 2008). The traditional TV companies are well positioned to succeed in the digital age. They have a brand of trust, community ties and contents valued by consumers. It must be remembered that the contents are and will be the engine of business. New Advertising Formats A considerable part of the audience avoids TV ads, either by zapping, ignoring or abandoning the space where the TV during breaks. With a growing supply of TV channels from 80 years of the twentieth century, audiences have become smaller and more fragmented. With the emergence of the DVR - digital video recorder - the increased propensity to avoid advertising. In this context, the hybrid advertising formats, which fit the product-placement and sponsorship are gaining strength. The product-placement offers some features that may prove advantageous in relation to television spots, including the fact that part of the editorial content, preventing the audience from the skip (Rimscha et al, 2008). Aware of the change, the European Commission published a directive AVMS - Audiovisual Media Services Directive (Audiovisual Media Services) - which has as a main objective the modernization of the legislative framework for the advertising. The Directive gives flexibility to the advertising on television, recognize new formats such as split-screen (split screen), virtual and interactive advertising. Although flexible, maintains the limit of twelve minutes of advertising per hour of broadcasting. The Directive has yet to establish a clear framework for product placement in both linear audiovisual services like the non-linear, except for news, current affairs programs and programs for children, promoting the industry and this form of income-generating (Directive 2007 / 65/CE European Parliament and the Council of 11 December 2007). We may assume that, somehow, we are witnessing a return to the past, returning to bring advertisers into the content. The adaptation will also to take advantage of new technological capabilities, experimenting with new advertising formats suited to the audience and platform for content consumption. Be present on various platforms where is the audience In this cauldron authentic technological challenges and new opportunities arise to television companies. The traditional broadcast will be a platform to distribute their content and others such as the Internet, mobile or video-on-demand. Through the new directive for the sector, the European Commission, intended to prepare the legislative framework for the new surroundings in the middle sector, covering not only the traditional linear TV broadcasts (which follow a schedule set by the station) as well as services video-on-demand/serviços nonlinear (where consumers pick and choose when to consume the content) (Directive 2007/65/EC of the European Parliament and the Council of 11 December 2007). According to European Commissioner Viviane Reding (2008), using the various platforms available, the television companies will benefit from more opportunities to offer their services and increase its visibility. Provide programs or specific content via the Internet allows you to maintain a connection with the audience beyond the broadcast. Furthermore, it allows to capture niche markets attractive to advertisers who can use specific target groups, segmented by demographic, geographic or behavioral factors. Importance of Social Networking Social networks like Facebook, MySpace, Hi5 and Twitter are a huge success in terms of public support. Some of these networks already permit the sharing of video content. However, in future social networks can cross making the consumption of television viewing programs on a shared experience. Using polls, chats, forums or lists of bookmarks, social networks may influence the consumption of video. With the evolution of television (and set-top box), this equipment will not only allow the viewing of video content shared in social networks, as well as the use of facilities provided by them in an overlay on the broadcasts, allowing users to share the consumer experience without "exit" from the TV. It will be important for television companies know how to exploit and take advantage of social networks. As has been previously shown, the appetite of consumers for a socially shared television consumption using social networking is already a reality through the multi-tasking. The "Television Meets Facebook" developed at MIT can be presented as an example for the influence that social networks may have in the consumption of television. This project involves the interconnection between the DVR and Facebook, allowing "friends" for the user to know which programs are being written, pointing out the content and share opinions on them (Rosario, 2008). Selling content online and offline TV companies will have to explore to obtain revenues directly from consumers. Marketing content through networks of retail formats such as DVD or blueray, take advantage of new features offered by platforms such as two-way VOD (video on demand) or pay-per-view content online and market similar to what happens in music industry are some of the possibilities that could be translated into relevant earnings. The bet may also pass through the provision of value-added content, focusing on niche markets and producing exclusive content for marketing. Adapting programming and content to the new reality The range of possibilities on offer and entertainment options mean is increasing, which will result in a continuous increase in fragmentation. Television stations compete for time-consuming entertainment for audiences, which are also running on the Internet, mobile platforms and even game consoles. However, technological developments not only brought threats to television companies. The DVR has changed the paradigm allowing users to consume their favorite programs whenever and wherever, without having to subject themselves to the time of issuance. The Internet and the DVR can be threats to television by linear programming. However, sporting events, reality shows and other programs continue to be in direct hits from the audience. In the U.S., events like the Super Bowl, the NBA playoffs, American Idol or the Academy Awards continue to gather the whole family in front of the TV. In 2008, 30 million Americans watched the live broadcast of the Oscars ceremony. Additionally 2 million saw the same night via DVR (Gluck and Sales, 2008). The content will thus be able to meet the new reality and consumption patterns. It will be necessary to take into account the characteristics of each platform and make the most of it in the production of content. Each platform has different characteristics compared to the other, for example, a mobile telephone will be tricky to interpret facial expressions. However, given the small size of the screen will require greater concentration, which will increase the retention capacity of the message (Nielsen, 2009d). exploit the capabilities of the new television assets The evolution to an "active" TV , connected to the network and processing capacity, provide an opportunity for television companies, they may develop specific applications, multimedia contents and to make their interactive programs using the new capabilities of the equipment. For service providers of subscription television is a threat because they will lose access to exclusive content through their set-top box. Developments in Audience Measurement The audience measurement is not only a change to incorporate the timeshifted tv. Will have to monitor technology trends and consumption. The Internet has allowed advertisers to know who interact with their advertisements, to evaluate the performance of their investments and target advertising campaigns to an unprecedented way. Also the television industry needs to evolve to meet the demand for more information and efficiency in ad spending. SWOT Analysis of the broadcast television companies business
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