Streaming Wars: Why SVOD Services and On-Demand Streaming are at a Crossroads with Mike Woods of Amagi

Marketing Trends Podcast

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While cable services may be on life support, the simple truth is that live TV captivates audiences in ways on-demand content can’t. Maybe it was the anticipation that came with watching Roy Halladay fan 11 Marlins hitters in a perfect game for the Phillies back in 2010 or the anxiousness that occurs watching state-by-state election results roll in on a Tuesday night in November. The bigger point is that while on-demand content has become a big part of our daily viewing habits, live television and the revenue companies generate from those audiences is undergoing a renaissance.

In order to do business, in order to have the things we need, we need to generate revenue somehow,” Mike Woods, SVP of Product at Amagi said. “So the payment for what happens, and the ability to create content, pay artists, funding, great content has to come from somewhere. Either people have to pay for it through subscriptions directly, which is the SVOD space, that Disney+, Netflix, and the HBO Max, or they have to be willing to accept advertising because the advertisers are paying for the value there. These are the tensions in the trade-offs.”

Those trade-offs have created an interesting divide in how media agencies are selling their advertisements when it comes to dynamic advertising on live streaming platforms and traditional cable.

“The conflict between the two sides [streaming and television] that we see today, and something that has to get reconciled that will get reconciled, is understanding how the shift works, and where it’s going,” Woods said. “If you’re buying an audience today, and you’re buying one or the other, or some mix of the two, you’re missing out on markets, you’re missing out on the audience that you want to buy. If you’re buying cable TV, you’re skewing very old. The controls that start coming into how you plug in to the streaming TV space, that’s where the rest of your audience has come up. I started to turn that course between traditional TV buys and bringing those buys into the streaming TV space to do the full brand awareness campaigns, to get the value of TV advertising today that you would have gotten 10 years ago.”

On a recent episode of Marketing Trends, Woods joined host Jeremy Bergeon and discussed how media companies are approaching their ad buys when it comes to live streaming services, and how SVOD services such as Netflix and Disney+ are bucking traditional advertising with subscription-based models.

To hear more from this episode, make sure to check out the full episode of Marketing Trends here!

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