The Rise, Fall and Reinvention of TV in the Digital Era

by Lexi Landsman

When I started working in TV in 2010, a time that doesn’t seem too long ago, the screen industry was in its golden era. Back then, the TV Guide magazine was a staple of every loungeroom, the week’s shows neatly mapped out under five free-to-air platforms – Seven, Nine, Ten, ABC and SBS. Budgets were high, as were ratings – on a good night, a show’s views could soar well over 1.2 million. We didn’t have algorithms to suggest what to watch; it was all about the collective viewing experience and keeping up with watercooler chats. It was a simpler time.

Australia reached peak TV in 2019 and then came the streamer land grab. As the world held its collective breath in the grips of the Covid pandemic, we took solace in entertainment, with the average Australian household subscribing to three paid streamer services. But what goes up, must come down. And down it came, sending shockwaves through the TV industry. A reckoning. The post-pandemic crash was attributed to a perfect storm of rising costs of living, the economic downturn and the US writers’ and actors’ strikes. Australia’s TV industry fared better than most countries like the UK, where the Bectu broadcasting union declared a state of “emergency” when unscripted unemployment reached 74%.

Today, we are amidst the most seismic, swift and disruptive transformation in the history of television. Streaming giants, AI-driven content creation, the proliferation of smart TVs, and the rapid migration of advertising dollars to digital platforms are redefining content production, distribution, and consumption. Audience behaviours are shifting dramatically, new business models are emerging, and the rise of the creator economy is challenging traditional gatekeepers.

So, what does this mean for the future of TV? Ahead of the Australian International Documentary Conference (AIDC) this week, I spoke to industry leaders appearing in the panel ‘Broadcast Horizons: Redefining TV in the Digital Age’ about their thoughts on the current state of the screen sector and what lies ahead.

“YouTube has changed the universe,” says Adrian Swift [below], Nine’s Head of Content, Production & Development. “While we [free-to-air networks] were waving our swords at each other, YouTube was sneaking up behind us with a thousand tiny knives, and we didn’t realise we were bleeding out.”

Indeed, few would have predicted that a user-generated platform once synonymous with cat videos, would come to surpass its predecessors and become the dominant force in content consumption. In the US, streaming as a share of total TV is approaching 50%, and within that streaming segment, YouTube is consistently the largest share, exceeding Netflix. As for Australia, the most recent Ampere Analysis survey found that 86% of responders had used online video services like YouTube in the last month, compared with 74% who had used subscription services, and only 47% for BVOD services.

And it’s not just audience numbers that are skyrocketing; YouTube’s ad revenue reportedly exceeded $10billion last year.

Networks have been quick to evolve, integrating YouTube and social platforms into their release models.

“Distribution strategies are changing but broadcast still has massive numbers coming in,” says Jennifer Collins [left], ABC’s Director of Content. “We shouldn’t buy into the panic that TV is dead. The industry is really resilient and good at responding to change. Broadcast and Streaming and Social are all part of the ecosystem, all working together to reach audiences.”

Kylie Washington, General Manager and Creative Director, BBC Studios Productions Australia, believes the key to longevity lies in adaptability and innovation. “Anyone on the front line of producing television shows will be feeling the unfortunate combination of rising costs, downturn in advertising and a reduction in volume. But as producers, we have to constantly evolve, explore new funding models and ensure that our content is relevant, and we know where the audience is going and what it wants. Great storytelling will always win out.”

There might be fewer commissions and more creativity behind funding them, but the demand for content is still there. According to Omdia, media and entertainment global market value will top $1 trillion by the end of this year, with traditional TV comprising 29.4% and online video comprising 40.7%. In Australia, revenue in the TV & Video market is projected to reach US$10.74bn in 2025.

“Disruption in our industry is the norm, and it presents exciting opportunities to charter new territory in storytelling to engage audiences who are demanding fresh stories, innovative formats, along with a world-class user experience,” says Kathryn Fink, Director of Television at SBS. “In this constant state of evolution, we have never had a stronger remit to be pushing creative boundaries, harnessing the benefits of technologies, and delivering premium content that resonates across platforms.”

Among the biggest forecasted trends for the year ahead are further industry consolidation, more international co-productions, bundling of rival streamers, co-exclusive licensing deals and increased competition in ad-supported services.

Will the industry stabilise and a new ‘normal’ emerge? “There’s never been a normal for TV, that’s what we love about it,” says Sarah Thornton [left], Head of Unscripted at Paramount. “Inherently, we’re an industry that is always going to be at the knife’s edge of change. That means, we’re always finding opportunities to hone our craft and for more innovative ways of storytelling. Pressure creates diamonds.”

What’s evident is that even with AI’s predictive tools, we can’t forecast the future of broadcast. What we do know is that the only certainty in television is change. As we traverse this ever-evolving landscape, all we can do – as producers, broadcasters and content creators – is to find those diamonds, refine our craft, and arm ourselves with the tools and strategies to rise to the next challenge. And the next. And the next.

AIDC runs from 2-5 March at ACMI Cinemas. The ‘Broadcast Horizons: Redefining TV in the Digital Age’ panel discussion takes place on 4 March, 11-12pm. For more information, visit aidc.com.au