This relationship of dependence has sustained a model that is perceived to be increasingly weakened, in a constant search for the formula that will keep an industry afloat, which, paradoxically, has a larger audience and is more necessary than ever.

Subscription for content seems to be the solution in the Netflix era, and yet a large part of the population in our country is reluctant to pay for something that, until recently, was free. The economic crisis facing the media bears a close resemblance to the Addpocalypse phenomenon, which in 2017 popularized live broadcasting to the detriment of audio-visual production.

During the confinement due to the health crisis, live broadcasting via streaming has consolidated as a content consumption habit for a large part of the population, whether at work or in leisure environments. During this time, we have learned to communicate better through screens, we have found new ways to interact with the audience and the consumption of concerts, seminars or talks has been normalized, becoming a business model with great potential.

Addpocalypse and the consolidation of live streaming

In 2017, a series of controversies associated with content creators on YouTube caused the exodus of large advertisers from the platform. As a mitigating measure, Google implemented an algorithm that categorizes, in a restrictive way, the channels in which advertisers can place their ads without worrying whether the content could affect their brand image.

This caused many creators, especially those targeting an adult audience, to see their income eroded to the point of making their activity economically unviable. As a result, numerous ways of monetizing content emerged. For example, direct brand sponsorship of videos aimed at their target audiences increased. Creators who were not able to attract sponsors (or did not want to count on them directly) began to make use of freemium alternatives for micro-patronage, hand in hand with intermediaries such as Patreon or through live streaming on Twitch (Amazon) or Mixer (Microsoft), which will become part of Facebook Gaming at the end of July.

These platforms began to swell their ranks with hundreds of creators who found a space where they could monetize their content without the restrictions imposed by Google’s algorithm. Today, many creators who have gained an audience on YouTube are making live broadcast compatible with video production to maximize their revenues.

Twitch, Amazon’s live streaming platform, was the first to implement a freemium model. Users can access any live streaming for free; however, the platform offers the possibility to support content creators through subscriptions and/or disinterested donations. Subscriptions offer certain advantages, such as skipping announcements during the broadcast or access to the exclusive chat for subscribers, although each creator is free to add other benefits such as participation in raffles or access to direct communication channels. In both cases, streamers receive the majority of the revenue derived from the contribution, at a much higher percentage than when monetizing a video on YouTube.

Under this premise, many creators from different fields began to broadcast their content live, causing Twitch to open up to a wider audience. Although the platform is known for its gamer content, nowadays it is possible to find channels with very diverse themes.  Similarly, it is common for the platforms themselves to reach agreements with creators with a greater volume of viewers to guarantee their permanence and the exclusivity of their broadcasts. This, in turn, has encouraged the creation of very loyal and lucrative communities, which support their favourite creators on a monthly basis with their subscription fee.

A new type of audience for the media

Why are the users of these platforms, usually young people, willing to pay for entertainment that they can access for free and yet resist paying for information offered by media? Why is not possible to create a “Netflix” of news – such as Apple’s attempt  from where media such as the New York Times are already exiting?

The simplest answer is that the audience does not pay for the content as such, but for the feeling of belonging to a community. The key to the success of these platforms lies in making monetization a way to interact. Users empathize with the creators, better understand their work, the difficulty of carrying it out and want to have a space where they can relate to them within that context.

A few days ago, Francisco Rouco de Xataca detailed in an article all the subscription models used by the Spanish press. In spite of the different proposals and prices, he highlights how most of them limit themselves to putting up a wall of payment for content that, until recently, would have been free under the advertising model. If the future of journalism is about subscription, we must think about what the new audience will demand and for what they are willing to pay. We are moving towards a more participatory model, where the subscriber wants a personalized experience and direct communication channels with the source of the information.

The value of journalism has historically been in the ability to convey information, to give relevance to facts, to provoke change and, at present, to do so immediately. It is our job to find out what value to bring to the audience in this new normality and to legitimize it with its economic support.

Image: Nicolas LB / Unsplash

La entrada The generation that pays for online content se publicó primero en Agencia comma.

Uncertainty isn’t good for the economy, as many investments are postponed and the release of new products and services are put on hold. This constitutes a threat to our industry, because it means less activity. On the other hand, uncertainty also increases risk, and that may as well create the need for specialized services in the fields of crisis communications. Besides that, companies may also feel the need to share how they successfully responded to the health pandemic and how they continued to operate their businesses. That will not only help to build corporate reputation, but will also contribute to bring a stimulus to employee engagement.

At ALL Comunicação, we’ve never worked so intensively, for such a long period of time, as we did during these past three months. The image of Aesop’s Grasshoper accompanied me through the endless working days during the lockdown period. Work hard, deliver value to your clients, be creative and timely, pursue all opportunities. This is what we did, and I firmly believe that because of this proactive attitude, we are now more resilient, focused and confident about the future, as uncertain as it still is.

We’ve learned a few lessons along the way, so here are few thoughts for my fellow PR professionals:

Value your people

During uncertain times, it’s even more important to show and reassure your team that you value them. Ultimately, we’re all in this together. This also means that you have to lead the way and set the pace, so that everyone follows in a synchronized way. On top of this, to further encourage people to work together as a team it’s essential to also zoom in on their individual needs. People are fatigued, afraid, mentally exhausted and unsure. Understanding that without a motivated team, the boat will drift or, even worse, sink, will keep you focussed and give you the ability to adapt to these changing times.

Encourage action

Trust and empower your teams so they feel responsible but supported, and better serve the agency’s clients: whether by anticipating their needs and offering them viable solutions, or responding quickly with the same level of quality. It is especially at times like these, that clients need to feel they can blindly trust and rely on their PR advisors.

Partner for growth

This is of paramount importance, not only with regards to the people that work with you, but also with your clients. Explore further synergies, go the extra mile, show them how your firm’s core competences can add value to their business especially during uncertain times. Give your clients the confidence that you can deliver and rise to the challenge.

Question your purpose

What kind of PR firm do you want to lead in the post-pandemic? What drives your people and how much are you willing to commit to in order to make a difference? Undoubtedly, the world has changed in 2020. It’s time to rethink our businesses – with strong values and principles – so we can adapt and thrive in this new world.

Diversify your client base

As with all crises, some industries and businesses are more affected than others. If you’re relying too much on one or two clients or a specific sector, you’ll get hit harder than most of your competitors, so it’s important to think about diversification. Diversification, however, doesn’t mean lack of identity. This reflexion means you’re thinking about the future of your business, and your team, because all the decisions you make affect your people.

Refresh your team’s skills

This is an excellent time to gain new competences, especially digital ones. The present is digital and it’s fundamental we get our PR and Digital Marketing skills up to date. These are essential for any post-pandemic communication strategy.

José Aguiar, Founding Partner ALL Comunicação

Photo: Samson / Unsplash

La entrada Communication in uncertain times se publicó primero en Agencia comma.