NBCU struck a deal with affiliates that lets them opt-in on streaming agreements the broadcaster negotiates. This is good for the affiliates, but they must do much more to have a future.
Chapter 1: Three reasons affiliate should love NBCU deal (0:30)
NBCU agreed with affiliates that they can chose to opt in to any deal the broadcaster strikes with streaming delivery. It is a good idea for affiliates to do this because:
- The audience for linear broadcast channels is falling
- Some of that audience is going online to services like Sling TV, and operator TV Everywhere portals
- NBCU can negotiate a better deal than affiliates can with online companies
Chapter 2: Affiliates must still solve long-term problems (1:50)
Though affiliates should be happy with the NBCU deal, it is not enough to fix the problem with their long-term future.
Young people increasingly don’t watch live television. Many get their news from social media, for example. When there is a breaking event in their area, young people don’t turn on the television. They go to social media.
That means affiliates are in competition with Johnny-on-the-spot people with a smartphone and Facebook Live. Affiliates need to aggressively push into social media to recapture their traditional audience.