The Canada Media Fund’s (CMF) latest Perspectives report says the audiovisual sector will need to reinvent itself to keep up with fast-moving technological advancements and economic shifts.

The issue, published Tuesday (May 21), is the second of CMF’s new Perspectives publication, which succeeds its annual Key Trends Report and is published in three editions per year by the funder’s foresight and innovation team. The inaugural Fall 2023 edition was focused on digital creators, while the Spring 2024 issue explores how the industry can embrace change.

One of the key takeaways in the report is how streaming giants have fuelled a business model shift from nearly endless content to a prioritization of profitability, with global content spend levelling off in 2023.

That shift has led to streaming services exploring more traditional methods of attracting and retaining customers, including bundling platforms, appointment viewing via live episodes and scheduled episode drops, and more affordable price tiers via ad-supported offerings.

These changes have exacerbated the pressure on traditional linear broadcasting, which has been increasingly outpaced in advertising spend by digital since 2019, according to the report.

The report identified three core factors pushing the audiovisual industry to reinvent itself: Artificial intelligence (AI), environmental sustainability and efforts to increase diversity, equity and inclusion (DEI).

For AI, the report indicates that the technology could greatly enhance production processes for the sector, providing automation services from script-writing to post-production and distribution.

However, there are risks involved with sharing data on publicly-available software and technology, and in-house AI tech is a pricey alternative. The report also warns that AI use could greatly increase a production’s carbon footprint at a time that the industry is moving to more sustainable practices.

Speaking of green production, the report says that the screen sector is still in the early stages of the implementation of sustainability initiatives. In a survey of more than 300 producers on the barriers to going green, 68% said they still lack awareness of the benefits of sustainability while 56% said there aren’t enough financial incentives.

When it comes to the implementation of DEI initiatives, the report said the collection of race- and gender-based data remains critical in understanding the benchmarks for future growth. However, the findings on gender equity have historically shown that fluctuations also align with disruptions in the market, including economic slowdowns and the COVID-19 pandemic.

The CMF published its first demographic report based on its Persona-ID statistics earlier this year, with the funder noting that the initial findings aren’t enough to establish a benchmark yet. Results were also impacted by the fact that not all applicants provided the necessary data.

Other key takeaways identified in the report are the use of consumer data to inform content strategies and the growing convergence of gaming and immersive tech with the audiovisual sector.

The full report is available on the CMF website.

Image courtesy of the Canada Media Fund