Perception Is Reality: Redefining Relevance as a Key Theme at IBC 2024

By: Tom Evans|September 25, 2024

It was fascinating to witness the contrasting fortunes of companies across the industry at IBC 2024 in Amsterdam this week. Businesses offering similar services in the same sector, competing for the same audiences, spoke about the state of the industry in strikingly different ways.

Tom Evans

I spent the majority of my time in the Innovation and AI Hall, where I connected with companies experiencing rapid growth, expansion, and active hiring (as highlighted below). These businesses pointed to positive signs in the broader environment — such as the anticipated (and now realized) U.S. interest rate cuts and easing inflation — as indicators that the industry is turning a corner, with brighter days ahead.

On the flip side, others — especially those that had endured layoffs or faced a tougher market — interpreted the same factors differently. They argued these changes would do little to alter their underlying reality, forecasting 2025 to be a difficult year. Both perspectives rang true, underscoring that perception is, indeed, reality.

Disruption Is Permanent

It’s not new to note that audiences are permanently fragmented. Thought leaders such as entertainment industry pundit Evan Shapiro have done a fantastic job highlighting this reality and have provided insights into how companies can navigate this new landscape.

The effects of disruption are evident in several ways:

1. Colliding Strategies — In the race to capture audiences, companies are employing radically different strategies. In the telco sector, for example, some partners are heavily investing in placing devices, such as set-top boxes, in consumers’ homes, viewing this as the best way to connect with their customers. Others are taking a different stance, arguing that such devices are costly and complex to maintain, with the future lying in app-based solutions.

2. Content Visibility Challenges — As the content ecosystem grows more complex, visibility is becoming a significant challenge. Ensuring your content stands out in a crowded market is no small feat.

3. The Complexity of Distribution — The ever-expanding distribution ecosystem adds another layer of complexity. Content now needs to be available across countless platforms, with audiences expecting seamless functionality while showing limited loyalty to individual brands. Many companies are turning to bundling and aggregation as solutions. However, without high levels of automation and built-in agility, the cost and complexity of managing this fragmented landscape skyrocket. Simply put, manual processes that may have worked in the past are now too expensive, inflexible, and prone to error.

Experimentation and Agility Matter More Than Ever

The need for agility emerged as a constant theme throughout the conference. The industry is currently undergoing shifts in business models, technology innovation, and organizational structures. Companies are experimenting with new ways of working and innovative business models such as FAST (Free Ad-Supported Streaming Television). Agility and flexibility are crucial for companies trying to adapt and understand what these changes mean in practice.

Data and Reporting: A Strategic Imperative

While the conversation around AI was widespread, many companies are still grappling with how to harness its full potential. There remains a debate over how widely AI should be deployed.

On the other hand, there seemed to be more consensus around the importance of data — particularly actionable data. Having a clear data strategy has become essential. Although companies are at varying stages of data maturity, establishing a robust data model is crucial. Once your data is under control, next-generation technologies and automation can be implemented, enabling you to reach fragmented audiences, monetize your content library, and quickly launch new products — whether on FAST channels, social media platforms, or emerging markets. Effective data and reporting strategies also allow companies to assess the success of these launches and continue engaging audiences globally.

FAST and Social Continue to Gain Ground in Europe as Cord Cutting Accelerates

Research from Omdia shows that cord cutting has picked up speed across both Europe and the United States. In fact, the number of “cord-nevers” — people who have never subscribed to cable or satellite TV — is growing. This trend poses a considerable challenge for traditional broadcasters, particularly in the United States. However, the rise of new distribution models such as FAST has helped to offset some of the revenue losses. Having worked with many companies in the United States, it’s exciting to hear that FAST is also growing significantly in markets such as the United Kingdom, France, Germany and Australia. Here’s hoping that growth continues.

People Drive Change — Not Technology

Amid all this talk of technology and disruption, the conference reminded us that people remain the heart of every major organization. Countless discussions revolved around the idea that successful projects depend on the support and willingness of the people involved. A clear vision, a well-defined strategy, and buy-in from teams across the organization are essential for change to succeed. People need to see how the transformation will benefit them to accept the inevitable bumps along the way. Breaking down complex projects into manageable parts and empowering individuals to put those pieces into action are critical to success.

Sustainability Remains a Priority, and the Focus Will Continue Into 2025

Despite political and economic challenges, it was heartening to hear many companies pushing forward with their sustainability agendas. Companies such as Sky have long led the way, and we were encouraged to hear about the environmental credentials of businesses such as Elisa and Humans Not Robots and the industry certifications from the DPP Sustainability Initiative. This focus on sustainability will undoubtedly continue into 2025 and beyond.

Conclusion

IBC 2024 was the media and entertainment industry at large: a sector in transition, where perception shapes reality, disruption is a constant, and success hinges on agility, data-driven strategies, and, above all, people. While the road ahead is challenging, the opportunities for those willing to adapt are vast. As we look to 2025, these themes will continue to shape the industry, and those who embrace them will be the ones to thrive.

Tom Evans is VP, EMEA, at Whip Media, which helps the world’s leading entertainment companies connect content to consumers, and track content performance anywhere.