by moving viewers through the innovation diffusion curve
In the past, I have made a few posts about the innovation diffusion curve. It is one of my favorite marketing models and I think we are seeing it right now with streaming. The specific example I am thinking about is NBC and Peacock.
For starters let's define the innovation diffusion curve. The curve explains how, why, and the rate of assimilation that new ideas and technology spread. Some products or ideas move through the diffusion curve quickly. An example that moved quickly was the iPhone. The first time I saw one I wanted it. I think it was that way for many people. There were the innovators, but the iPhone quickly gained acceptance and market share. It's simply diffused into becoming the norm quickly.
Some products never really move through the curve an example is the Blu-ray player. It was a cool idea and there were certainly some innovators and early adopters. Ultimately the Blu-ray player was not really that much different than a DVD player period. In addition to that streaming services like Netflix likely took away some of the shine. Television sets became better and cheaper even 4K TV's. There are many more forms of digital entertainment that don't always take place on the TV. The market for Blu-ray players dropped before it before it made it through the diffusion curve. Samsung does not even make them anymore. I only mentioned Blu-ray for an example I am not an expert on Blu-ray, but my guess is it never made it through the early majority face of the diffusion curve.
So, what is going on with NBC and Peacock? Large media conglomerates have publicly stated they have shifted to a streaming-first mentality (Here is one article, there are several https://bit.ly/3R6vnXW). Rather than swim against the current, they have started streaming services. ABC /Disney- Hulu, NBC/NBCU- Peacock (they still own a small portion of Hulu) CBS now Paramount- paramount plus… These large media companies own other streaming platforms as well.
I think their goal is to move viewers from terrestrial TV directly to their streaming platforms. Not only is it inevitable, but it may also become profitable for them. When networks cut out the affiliates, they are able to keep all of the profits for themselves. Just like most streaming platforms, Peacock is moving through the diffusion curve. A quick Google search indicates Peacock has between 14 and 17 million subscribers. I am not sure we'll ever get the factual number, but it really doesn't matter. Peacock has definitely passed the innovators and the early adopters. I think it is moving on to the early majority.
NBC is making some shifts to push viewers along the curve. NBC is currently pulling shows from Hulu and moving forward NBC will move all next day access shows from Hulu to Peacock, Article here https://bit.ly/3edE3NQ. On September 12th, 2022, NBC is moving their longest running show to Peacock- Days of Our Lives. The move of this one program is expected to increase subscribers for Peacock and NBC is pushing that agenda by offering Peacock premium for $1.99mo/ $19.99 yr. month (https://bit.ly/3TqKnBA). The core audience of Days, likely not hardcore streamers, will not stop watching they will just shift how they view the program rather than terrestrial TV they will look to explore the Peacock platform.
The latest news to break is that NBC is considering reducing network affiliate primetime by one hour. It would be my guess the hour they removed from the affiliates they will be placing on Peacock. Regardless of the platform content is still king.
In my view these two moves alone are nudging viewers into the early majority phase. I know I am geeky, but this is fascinating to watch unfold.
Keep streaming, soon it may become the only way you can view the content you want to see.
Related article https://bit.ly/3KzJUsH
#CTV #Streaming #OTT always getting better for viewers and local advertisers.
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