TV Content, Movie Content Owners and Broadcasters stop giving away your value to bootstrap the future of TV

The landscape of television broadcasting is rapidly evolving, and with it, the revenue share model is becoming increasingly complex. Fast channels, or digital streaming channels, are particularly affected by this shift. The promise of bootstrapping these channels often comes with accepting revenue shares of 30-50%. While this may seem like a viable path to quick growth, it comes with a massive hidden cost.

The Cost of Technology: By accepting lower revenue shares, broadcasters are effectively paying ten times more in technology fees than they would have if they had invested upfront. This is because the reduced revenue share doesn’t cover the costs of the technology needed to run a fast channel efficiently.

The Goldrush Effect: There’s a goldrush mentality in the industry, with many players entering the market trying to gain value and raise investments. The focus is on the potential for future earnings rather than the actual revenues being generated. This speculative approach is risky and can lead to inflated valuations that don’t reflect the true worth of the channels.

The Impact on Content Owners and Broadcasters: The ones who suffer the most from this model are the content owners and broadcasters. They are the creators and distributors of the content, yet they receive only a fraction of the revenue—often as little as 10%. This is unsustainable, as they bear the majority of the costs associated with content creation and distribution.

The Need for a Sustainable Model: For the broadcasting ecosystem to thrive, a more sustainable revenue model is needed. Content companies and broadcasters require a larger share of the revenue—more than two-thirds—to cover their costs and invest in quality content. Without this, the entire system is at risk of collapsing.

In conclusion, the current revenue share model for fast channels is problematic. It prioritizes short-term gains over long-term sustainability, hurting content owners and broadcasters who are essential to the industry. A reevaluation of this model is necessary to ensure that those who create and distribute content are fairly compensated, securing the future of television broadcasting.