Television production is growing as new technologies allow for increased consumption sources. According to IbisWorld, 33.2% of the television industry is made up for drama programming and, as evidenced through reproductions like “Jane the Virgin,” the telenovela industry is at a critical growing point it its life cycle where it has the unique opportunity to grab a hold of the U.S. viewers who enjoy drama programs. Technology change is high and more frequently the millennial audience, ages 18-34, uses online streaming to watch their shows after the show has aired on TV. Telenovela producers should take initiative and begin targeting the Hispanic millennial population in the U.S. in order to increase growth and revenue. Doing so will add a competitive edge to any production company.
There are many benefits to producing digital content. One of the biggest benefits is that digital content creates measurable metrics, such as impressions and click-thru rates. If a company were to analyze the demographic data and metrics available through online content, it would have a better understanding of its current audience and from there expand its reach. Another benefit is advertising dollars. According to IbisWorld, 75.0% of U.S. senior executives of advertising companies are increasing their digital advertising budget. Big online streaming sources, such as Hulu, Netflix, and Amazon Prime are the next generation of revenue for television production and advertisers. Telemundo has already begun experimenting with online content and is a well-established member of its online community. Telenovela production companies can capitalize on digital content and online streaming by partnering with online streaming sources. The rising online viewership rate and online and mobile development are signals of increased revenue opportunities; we know from class the telenovelas are an industry and its producers are revenue-oriented. Furthermore, it is less expensive for the consumer to view online content at a monthly rate, than to purchase a television set at a particular moment in time. As Wifi becomes more accessible across developing nations, the trend of online-viewership will become more evident and companies already established in the digital streaming area will be seen as innovators with a strong competitive advantage over their contenders.
Telenovelas are already a global product and the barrier to entry in the U.S. could be solved with the creation of more online content and streaming services. According to IbisWorld, 56.9% of TV viewers use the Internet while watching TV. Any industry that capitalizes on this fact will benefit with consumers and revenue. U.S. television production companies are already taking telenovela tactics and reworking them for their own benefit, and audiences are not aware. Telenovelas are at a critical point in their development where companies could easily invest in online content and benefit in the long-run.