Appointment television. In the network television world these are magic words. If consumers continually make an “appointment” in their busy schedules to watch your program, then you, as the broadcaster, can afford to ask for and likely receive high advertising rates. Yet appointment TV is increasingly an elusive goal for many networks, given the advent of video on demand, internet downloads and PVRs. Viewers no longer need to make the appointment, but simply watch what they want, when they want. According to the CRTC, profit at Rogers on Demand increased more than 350% in the past two years. Similar results were reported at Vidétron Illico sure demande service, boasting profits of $11 million in 2009.
Yet there are broadcasters whose future looks rosy indeed. Specialty channels, with their hyper-targeted content and niche programming, will likely continue to attract viewers – while not in the millions perhaps – but in quality and quantity enough to demand premium advertising dollars. The real winners, as a recent Globe and Mail report by Susan Krashinsky suggests, are Canada’s sports networks. Of the top five most profitable specialty and pay TV networks in 2009, two of them were sports channels. Rogers Sportsnet edged out TSN on the list with profits of $40.7 million and $40.3 million respectively.
Sports, by their very nature, are best consumed live. There was a time when you could miss the live broadcast and perhaps catch it later, tape-delayed. The speed at which results are now posted make it almost impossible to not discover the final outcome. Passionate fans only add to the challenge. Try driving home in Toronto this summer during the World Cup. If you miss the match of the day, no doubt a car will drive by honking its horn, national flags proudly flapping out the window. Damn, <insert nation here> won.
Live events may just be the last bastion of appointment TV, outside once-a-year awards shows and such. There’s other trends that will only add to the profits of smart broadcasters – new Portable People Meter technology is giving far more accurate ratings, goosing traditional live event programming numbers to new heights – in terms of accuracy and sheer volume. The move to quality vs quantity when assessing viewership is now undeniable, as advertisers focus on delivering more personal, more targeted messages.
Live event and hyper-targeted content seems to be the future of TV. For broadcasters who get it, the profit picture will likely be static-free.
Editor’s note: To ensure complete transparency, it should be noted that One on One Communications is the agency AOR for Rogers Sportsnet, a relationship we have enjoyed since 2001. Naturally, we take a lion’s share of the credit for the channel’s performance.
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Top 10 in 2009
W Network – $41.3
Rogers Sportsnet – $40.7
TSN – $40.3
Teletoon – $35.3
The Movie Network – $28.2
History Television – $27.3
The Discovery Channel – $25.4
YTV – $21.3
Space – $21.3
HGTV – $21
Source: CRTC, Susan Krashinsky, Globe and Mail, April 23, 2010
