The media landscape is experiencing a fundamental shift. Traditional broadcasters are being squeezed from both ends – Netflix and other streaming services applying pressure from above, whilst platforms like TikTok exert pressure from below. This creates a challenging environment for maintaining relevance and profitability.

In discussions with European broadcasters, I've observed that many are focusing on rebuilding trust as their key differentiator. With widespread concerns about misinformation and manipulation, established broadcasters are leveraging their historical reputation for reliability. The BBC, for instance, maintains strong credibility as a trustworthy source. This strategy aims not only to attract viewers but also to secure advertising revenue by offering brands a credible environment.

Financially, broadcasters are shifting from capital expenditure (CAPEX) to operational expenditure (OPEX) models. Many built their own infrastructure in the past but now find themselves locked into legacy systems that limit their agility. These investments typically require 5-8 years to depreciate before new funding becomes available, creating significant technological constraints. Consequently, there's growing interest in as-a-service platforms that offer greater flexibility while requiring less upfront investment.

The technology lock-in concern is a significant industry challenge. Many broadcasters are attempting digital transformation while dragging along legacy systems, which is comparable to changing the wheels on a moving bus. The ideal approach would be to build something entirely new alongside existing systems and then perform a complete transition, but budget constraints often make this impossible.

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 of creating compelling content rather than building and maintaining technology infrastructure. Whatever technology you invest in today might limit your flexibility tomorrow, especially considering how rapidly the landscape is evolving.

This explains the increasing demand for managed services at Red Bee Media. Content owners are recognising that outsourcing technology operations to specialists allows them to remain agile while focusing on their core strengths. Several large media companies are currently transitioning to this operational model, essentially pushing the reset button on their technology strategy.

The success of direct-to-consumer models will largely depend on content uniqueness. Sports content is particularly well-positioned for DTC success, as evidenced by movements from rights owners like Premier League and Formula One. These properties can offer enhanced viewing experiences that traditional broadcasts cannot – multiple camera angles, player-specific views, and interactive features that leverage newer technologies.

Many content owners are pursuing hybrid strategies, maintaining their B2B relationships with traditional broadcasters while simultaneously launching direct channels to consumers. This creates a dynamic where broadcasters may find themselves constrained by legacy technology while content owners leverage newer platforms to deliver enhanced experiences.

For general entertainment – films and series – I don't foresee significant shifts toward new DTC platforms. The market is already saturated with major players, and the barriers to entry continue to increase. However, for properties with dedicated followings and distinctive value propositions, direct distribution will continue to expand over the next 3-5 years.