Foreword by
Managing Director, Globant
When I founded my OTT platform twelve years ago, the industry was completely different. We operated in a world where content was king—the only king. Today, after scaling to 60 million users across five territories and navigating through the industry's evolution, I've seen firsthand how profoundly things have changed.
The broadcasters are being squeezed from both ends—Netflix and streaming giants applying pressure from above, while platforms like TikTok exert pressure from below. This creates what our research confirms is a challenging environment, with 67% of executives identifying competition for viewer attention as their most significant concern.
For traditional media companies, this transition isn't primarily a technology problem—it's cultural. As one broadcaster explained to me, trying to modernize their business is like "changing the wheels on a moving bus." They've built solid, profitable businesses over decades with one approach, and now must fundamentally transform while keeping everything running.
The shifts are happening, though. Look at Channel 4—they've moved from 16% digital revenue five years ago to 30% today, significantly outpacing the industry average of 10%. They're managing what they call the "clutch control" between streaming and linear broadcasting. Or as their Commercial Leader Angus Mitchell puts it, they've set a target that by 2030, 50% of their revenue will come from digital sources.
What's particularly interesting is how the market is dividing. Content owners and aggregators are increasingly focused on retaining rights for direct-to-consumer distribution, even while maintaining B2B relationships with traditional distributors. The opportunity to transform an audience into a customer database represents tremendous value, particularly as advertising evolves toward personalisation.
Our polling shows that 67% of industry executives believe hybrid subscription/advertising models show the most promise for revenue diversification. Disney+ exemplifies this approach—they now have a third of subscribers on an ad-supported tier, creating what one streaming expert described as "a subsidised model where consumers pay less while the company builds additional revenue streams through ads."
After my experience building technology and running operations, I've observed that media companies today face critical decisions about in-house development versus partnerships. Many are choosing partnerships over owning their tech stack—our data confirms this with 67% preferring strategic technology partnerships over internal development. This is sensible. I always use the company car analogy—if you're in the banking business, you don't buy and maintain your own cars; you lease them. Similarly, content owners should focus on their core business rather than building technology infrastructure.
AI is creating fascinating possibilities for this industry. I'm seeing broadcasters using it to transcribe live sports coverage, making it economically viable to cover local matches that would otherwise be too costly. The voice-over technology has improved dramatically in just 18 months—some tools we're testing now are genuinely difficult to distinguish from human voices. This transformation enables media companies to scale content production across more niche interests while significantly reducing costs.
The future for media companies will require balance—between subscription and advertising, between algorithmic recommendations and editorial curation, between technological innovation and human creativity. Organisations that navigate these tensions successfully will thrive.
As you explore this report, you'll discover insights from leading media organisations on their approaches to these challenges. Their experiences, combined with our research, provide a valuable roadmap for building sustainable models in this new landscape.
Giorgio Tacchia Managing Director, Globant
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Globant is a digitally native company that helps organizations reinvent themselves and unleash their potential. They bring innovation, design and engineering together at scale to create impactful solutions. Globant specializes in digital strategy, design, and development, leveraging cutting-edge technologies and trends. With their agile pods methodology and commitment to innovation, Globant is a trusted partner for top brands looking to lead their industries in the digital landscape. They create digital transformations using disruptive technologies like AI, blockchain, and cloud computing. Major clients include Google, EA, and Disney. Globant bridges the gap between design and engineering to develop innovative software products. Overall, Globant helps global organizations reinvent themselves digitally.
Globant-UK@globant.com