Having said that, media owners have been going to see clients directly forever and a day. Generally, if there’s a trusting, strong relationship between client and agency the client picks up the phone to the agency as soon as the meeting is finished, and together agency and client agree on a course of action – maybe doing the deal direct might benefit the client more, which is something most agencies have no problem with. After all they get paid just the same and have to do less to close the deal. Of course sometimes agencies of all shapes and sizes do have a problem with the direct sell as such deals can mess up agency deals based on total volumes. These are deals constructed to benefit the agency as the rebates generated occasionally have been known not to find their way back to the client.
Outside of House of Cards’ nine Emmy nominations, a television network’s biggest fear is cord cutting. And there are no candidates with the scissors dangling as perilously close to the wire as OTT homes. Once they have comfortably settled into their Netflix streaming queue and Amazon Prime options, what is to keep them paying those monthly cable/satellite/telco bills? Apparently there is plenty. According to research firm GfK, the main driver in U.S. households cutting the cord last year was financial pressure. The need to save money outweighed any provider dissatisfaction or lack of necessity. It is quite possible that the plethora of OTT options has made it easier on households to cut the cord, but as David Tice, senior vice president of media and entertainment of GfK, said in a blog post, “I continue to wait for the economy to really gain traction and pick up, which will be the real test if people maintain their broadcast-only status even as economic concerns lessen. That’s when I’ll decide if I’ll pull my toe out and jump in the deep end of the cord-cutting pool.”