SYDNEY: Some audiences are migrating to video-on-demand (VOD) services from their traditional TV broadcasters, but many media owners see this as an opportunity to try new ways of engaging young consumers.

“Anywhere between 5% and 10% of our core programming is now consumed by broadcast video-on-demand, and audiences are growing anywhere between 60% to 70% year-on-year for those type of events [such as sports],” said James Bayes, national sales director for OTT video at Seven Network, during the recent Mumbrella360 event in Sydney.

“The pace of growth is phenomenal. The distribution of content across screens is opening up more opportunities for people to consume this great content,” he added. (For more, read WARC’s in-depth report: The challenges facing TV broadcast video-on-demand providers.)

Broadcast video-on-demand (BVOD) is generally defined as professionally produced video content which is viewable on different devices such as desktop, mobile phones, tablets, or connected TVs.

Advertising on BVOD usually appears mid-roll, much like traditional broadcast television, while a lot of the content that appears on BVOD is second run or plays simultaneously on free-to-air networks or secondary channels.

For Nine Network, the popularity of BVOD and binge-watching has influenced the shows the network commissions. And with young people adopting BVOD in droves, the trend is a new opportunity to engage those who don’t watch a lot of live TV.

“It means they can fit it into their lives when they want it. For us, that led to the commissioning of Love Island Australia. And Love Island is an absolute game changer,” said Pippa Leary, commercial director for digital sales at Nine Network.

Love Island Australia’s cross-platform audience averaged 511,000 per episode across Nine’s secondary channels and BVOD offering alone. On YouTube, it drew 180,000 subscribers and to date has generated more than 150 million views.

“The old way of looking at linear television and judging what is a success and what isn’t - that just got blown out of the water by Love Island. What we saw was at nine in the morning the next day, that is when people really started watching,” Leary said.

But what Nine was most excited about was attracting an audience that had long eluded the network: “Suddenly we got this youth demo, which we’d never seen before, and we knew it was a youth demo because they were consuming in such a different way,” Leary explained.

As the 16-to-39-year-old audience binge-watched its way through the series, Nine started to reconsider its approach. “It’s a completely different way of thinking about how you commission, how you market and how you monetise,” she added.

Sourced from WARC