The annual Variety Entertainment Summit at the Consumer Electronics Show in Las Vegas on January 8 was a hub of discussions on the latest trends shaping the media and entertainment industry. From artificial intelligence (AI) to webtoons to advertising and distribution innovations, the summit covered a wide range of topics that are driving the business forward.
The day kicked off with a panel of top programming executives who delved into the shifts in streaming content and the evolving focus of major networks and platforms. Beatrice Springborn, president of NBCUniversal’s UCP and Universal International Studios, highlighted the “new normal” of commissioning and production volume post-2023’s actors and writers strikes. She emphasized a shift towards what she termed as “Marquee TV,” focusing on quality over quantity. Springborn also noted the increasing trend of partnerships and creative collaborations among networks and platforms, leading to wider audience exposure.
Barry Jossen, president and head of A+E Studios, echoed the sentiment of a decline in volume being beneficial for the industry. He emphasized the importance of delivering high-quality content to cater to the platforms’ appetite for engaging shows. Rahul Purini, president of Sony Pictures Entertainment’s Crunchyroll anime streamer, highlighted the growing interest in content produced outside the U.S., signaling a broader appetite for diverse stories.
Angela Russo-Otstot, chief creative officer of AGBO content company, discussed the revolutionary tools like Epic Games’ Unreal Engine that are transforming virtual production capabilities. She noted that while it takes time for the creative community to adapt to new technologies, the opportunities they present are game-changing for content creators.
Fernando Szew, president and head of Fox Entertainment Studios, brought artificial intelligence into the conversation, emphasizing the studio’s optimistic approach towards AI as a co-pilot in navigating the future of the industry. The discussion on AI continued with a panel focusing on generative AI initiatives that are set to revolutionize entertainment. Fox Corp. CTO Melody Hildebrandt outlined the company’s AI-driven strategies for content discovery and interactive consumer experiences, showcasing the potential for AI to enhance user engagement and recommendation systems.
A panel on breakthrough technology trends saw a lively debate between Duncan Crabtree-Ireland of SAG-AFTRA and Shahrzad Rafati of RHEI on the role of AI-enabled agents in democratizing creativity. Rafati highlighted the potential for AI agents to act as virtual team members, easing the creative process for content creators. Crabtree-Ireland emphasized the importance of consent and compensation in the use of AI technologies, particularly in safeguarding performers’ rights against deepfakes and unauthorized use of their likeness.
Overall, the Variety Entertainment Summit at CES 2023 provided a glimpse into the future of media and entertainment, showcasing the innovative technologies and collaborations that are shaping the industry landscape. As the industry continues to evolve, these discussions serve as a roadmap for navigating the changing dynamics of content creation, distribution, and audience engagement. David Lee, chief operating officer and chief financial officer of Webtoon Entertainment, made a significant impact at the Entertainment Summit by sharing eye-popping numbers that shed light on the immense success of the webtoon phenomenon. Originally originating in South Korea, webtoons have become a global sensation, captivating millions of readers with their unique format – an online graphic novel presented as a blog-like scroll that is regularly updated with new material.
Lee highlighted that Webtoon has generated an impressive $1.3 billion in revenue from millions of readers who pay small amounts (often under $1) to access new material uploaded by DIY creators. With 170 million monthly active users and 24 million creators producing over 120,000 stories daily, Webtoon has established itself as a digital and mobile experience that transcends traditional genre boundaries.
The rise of streaming platforms has been a dominant trend in the entertainment industry over the past decade. However, while streaming platforms have seen significant growth, profits from streaming have not matched those from traditional licensing and advertising revenue sources. Trade Desk, a company focused on bridging this gap, offers advertisers and streaming platforms a one-stop solution for maximizing revenue.
Even industry giants like Spotify have partnered with Trade Desk to boost sales volume and CPM rates. Lee Brown, Spotify’s VP and global head of advertising business and platform, emphasized the importance of real-time bidding and data signals in enhancing advertising effectiveness on streaming platforms like Spotify.
Tim Sims, chief commercial officer of Trade Desk, stressed the need for marketers to embrace ad-sales aggregation efforts to reach consumers across various platforms seamlessly. By adopting a holistic approach to marketing, companies can engage audiences more effectively and maximize their advertising impact.
The evolution of storytelling in the digital age presents both challenges and opportunities for content creators. Carly Zipp, global director of brand marketing for Amazon Ads, highlighted the importance of creating authentic and engaging content that resonates with audiences across different platforms.
Michael Waghalter, senior VP and head of business development at Laika, emphasized the need to tailor storytelling for specific platforms while maintaining the authenticity and originality of the content. As streaming platforms continue to expand, content creators must adapt their storytelling techniques to suit the preferences of their target audiences.
Samira Bakhtiar, general manager of global media and entertainment, games, and sports for Amazon Web Services, discussed the growing role of live events in driving streaming platform growth. AWS, with its expertise in powering streaming platforms, plays a crucial role in delivering high-quality live content to audiences worldwide.
Mike O’Donnell, chief revenue and strategic growth officer for Vizio, highlighted the importance of innovation in maintaining viewer engagement. As the streaming landscape continues to evolve, platforms must innovate their advertising formats to attract and retain audiences effectively.
Overall, the Entertainment Summit provided valuable insights into the evolving landscape of the entertainment industry, emphasizing the importance of adapting to changing consumer preferences and technological advancements to stay competitive in a rapidly evolving market. In today’s fast-paced world, attention spans are becoming shorter and shorter. People no longer have the patience to sit through four-minute ad pods, interrupting their viewing experience. This shift in consumer behavior is forcing the marketplace to evolve and rethink how content is delivered.
In order to keep customers engaged for longer periods of time, we need to think about new ways to deliver content and the ad formats that support it. It’s no longer enough to rely on traditional advertising methods that disrupt the viewing experience. Instead, we need to find innovative ways to seamlessly integrate ads into the content so that viewers are more likely to engage with them.
One way to achieve this is by creating a great free content solution for customers that includes native advertising. Native ads are designed to blend in with the surrounding content, making them less intrusive and more engaging for viewers. By seamlessly integrating ads into the content, viewers are more likely to pay attention and interact with them.
Another way to keep customers engaged for longer periods of time is by creating interactive ad formats. Interactive ads allow viewers to engage with the content in a more meaningful way, such as by playing games, taking quizzes, or exploring product features. By making ads more interactive, viewers are more likely to stay engaged and remember the brand.
Overall, the key to keeping customers engaged for longer periods of time is to rethink how content is delivered and how ads are integrated into that content. By creating a seamless and engaging experience for viewers, we can ensure that they continue to consume our content and support the marketplace.
