Digital Disruption: Screen Australia skips ahead

As time goes on the world’s media continues to converge and new technologies take prominence over the traditional mediums of recent history. This environment necessitates innovation in the creative industries for companies and organisations to survive. In the screen industry this is most noticeable through the prevalence of digital disruption. While Australia is a later entrant in this space, there is no shortage of threats to traditional media including Netflix, YouTube, Facebook, and new services popping up all the time such as 10 All Access and the soon to be launched Disney+. Screen Australia, the country’s leading funding source for screen production, launched Skip Ahead in 2014, a funding program to complement their existing online production programs, in order to promote Australian content in the online space. This program, a partnership with Google, provides funding of up to $100,000 per project for up to six projects a year for eventual distribution via Google-owned YouTube. By supporting Australian YouTube talent to increase their audiences and produce high quality content through Skip Ahead, Screen Australia is meeting its commitment to “facilitate innovation and audience-engaging screen content primarily for viewing on the web and via social media channels” (Screen Australia 2018).

State of the industry

Screen Australia’s Online & On Demand 2017 (n.d., p.2) report identifies that online viewing “supplements and challenges cinema and broadcast television” with Australians still watching via traditional mediums across all access methods including subscription, broadcast and advertising supported. The report further highlights that in 2017 27% of viewers were watching Video on Demand out of the home at least once per month and that most viewers who are active on social media consume video via social media with 50% of those viewers utilising YouTube and 41% Facebook (ibid. pp.9-10). Digital is a growth area, particularly in the realms of video consumption with the Australian Bureau of Statistics (2018) finding that, as at 2017, 80% of internet users used the internet for Entertainment and Social Media, up from 60% and 70% respectively in 2014-2015.

Australian Communications and Media Authority (2019, pp.64-65) provide further evidence of the ongoing digital disruption across the screen industry with 82% of Australians using the internet to view video content in the previous 6 months to May 2018, with almost all users aged between 18 and 34 and 49% of users aged over 65 consuming online video content. This growth can be partly attributed to increased internet speed with 36% of Australian households connected to online services via the National Broadband Network (ACMA 2019, p.53) which is “enabling the disruptive rise of streaming video…empowering a millennial vanguard of cord-shavers, cord-cutters and cord-nevers” (Roberts 2015, p.8). Further, Australians are using the internet more often and across multiple devices with 74% accessing the internet 3 or more times a day and 40% utilising more than 1 device to go online (ACMA 2019, p.58). From smart TVs to phones and tablets, it is clear that the screen industry needs to reach audiences across multiple devices.

The Australian Government (2017) released a consultation paper that acknowledged the growth of online screen content and the disruption this is causing to the traditional screen industry. They identify how audiences are continuing to fragment, demanding more choices in relation to content and delivery mechanisms and that this provides both challenges and opportunities for the Australian screen industry (ibid., p.1). The situation is not limited to Australia either, with then CEO of Time Warner’s Turner Broadcasting identifying the “need to prioritize programming, monetization and innovation investment while reducing spending in less-impactful areas” (in Lafayette 2015, p.14).

As a case in point, online service BuzzFeed released a video, 6 Fruits You’re Eating Wrong, with a total run-time of one minute and forty-six seconds, across multiple online platforms including Facebook and YouTube, which achieved a viewership three times more than the finales of some of television’s flagship programs including Breaking Bad (Paar 2017, p.32). The disruptors are proving that audience tastes are changing. There is a real desire for bite-sized, short-form entertainment and “history shows that incumbents really don’t react to disruptive products and services until it’s too late” (Roberts 2015, p.9). Farrell (2017) posits that 15 minutes is potentially the maximum run length suitable for online video. He highlights how A+E Networks in the United States is re-launching their previously retired Biography channel brand as a series of one to two minute videos which will allow them more versatility with distribution across all of their outlets (Farrell 2017). There is also the potential of utilising short-form content as a tester for longer-form projects, as Gunpowder & Sky CEO Van Toeffler explains, “I love the idea of down and dirty, cheap pilots you can put up on your own sites and learn from your experiments” (in Farrell 2017).

As technology continues to advance and converge, it is estimated that by 2025, three quarters of internet usage will be mobile-only (Goldberg 2019), meaning it is even more vital for the screen industry to focus on digital-first distribution and short-form content. Short-form content that is not just more easily consumed on-the-go but easily shared, provides creators and traditional media with the opportunity to lead the social media conversation, get ahead of digital convergence and provide their audiences with an interactive experience (Marvis 2017).

The need for content

The growth in usage of online as a video source has given rise to an equal growth in the need for original online content. As of May 2018, 46% of internet users were watching user generated content online and video content online via a subscription service, and 32% were watching other forms of free online video content (ACMA 2019, p.82). With regards to professionally produced content, Netflix is the market leader in distribution with 65% of Australian internet users utilising the service, followed by YouTube with 27% (ibid. p.83). While this appears to be a large gap, it highlights the differences in content on the two platforms. YouTube has been traditionally known for user generated content but has, over recent years, become a platform that users turn to for traditional and original professionally produced media. This has been supplemented by the introduction of YouTube Premium (formerly YouTube Red), a subscription service that gives viewers access to YouTube Originals, content exclusive to YouTube created by some of YouTube’s biggest stars (YouTube n.d.). Screen Australia (n.d., p.20) identify the popularity of YouTube in Australia stating that “YouTube’s unique content offering, and massive global footprint, has reached broader Australian audiences, with 1 in 3 aged 60+ watching professional screen content via the service at least monthly”.

In their 2017 report, Screen Australia (n.d., p.7) point out the desire Australian users have for Australian online content, with 14% of survey participants responding that one of their top five reasons for not watching more online video was the lack of original Australian content. They found “most VOD users agree that Australian dramas and documentaries influence conversations around social and cultural issues and help us to debate and understand our national identity” (Screen Australia n.d., p.4) with 73% of Australian’s surveyed strongly agreeing that new and diverse Australian productions were important (ibid. p.31). According to Healy and Cunningham (2017, p.116) approximately 80 to 90 per cent of YouTube content created in Australia is actually consumed internationally.

Australian content projects Australia to the world. It showcases Australian talent, attracts tourism and returns revenue to the economy through our cultural exports.

Australian Department of Communications and the Arts 2017

Case Study: Skip Ahead – A partnership with Google

“Facebook has only just begun evolving into a platform for viewing professional content, and its enormous potential for growth could be a sign of what’s to come from other social media platforms” (Screen Australia n.d., p21). Australian content on YouTube has exploded in recent years, so much so that there are now in excess of 65 channels that have more than one million subscribers (Groves 2017). It has been described by Healy and Cunningham (2017, p.114) as both “radically empowering… and a precarious Darwinian environment in which only the fit survive – and perhaps thrive.” It is fitting then that Screen Australia has partnered with Google to provide a funding program in Skip Ahead that is focused on existing creators with established audience bases, one that will mentor the successful applicants by matching them with experienced production companies to help them forge successful careers that last long beyond the funded project itself. As Keane (2016, p.5428) notes “both producer and viewers/users are becoming more creative in their use of the medium which is in turn forcing content producers to expand into new formats and genres”, something that Screen Australia’s collaboration with YouTube promotes.

Upon launching the Skip Ahead program, which was largely initiated by Google, Fiona Cameron, Screen Australia chief operating officer, highlighted that the program was designed to provide Australian talent with resources to develop episodic storylines and that “YouTube allows breakthrough, cutting edge content to access new audiences anywhere and anytime” (in Groves 2013).

As identified by Craig and Cunningham (2019, p.259), the initial recipients of Skip Ahead funding were “indicative of the main YouTube verticals, with the inclusion of sketch comedy, “how-to” science and car-modification videos, animation for a hipster audience, and a prominent Melbourne vlogger”. Screen Australia has promoted the funding program as an opportunity to “cultivate native Australian “storytelling” online” (ibid.). The projects funded by the Skip Ahead program in this initial round saw the YouTubers divert slightly from their schtick while not alienating their established audiences, as such the car-modification creators actually undertook a trip across Australia where they would meet locals, borrow their cars, and highlight iconic Australian locations (ibid.). The creative teams/channels selected in 2014 included Axis of Awesome, Mighty Car Mods, Louna Maroun who partnered with Neighbours Official (Ric Forster and Alicia Hamilton of FreemantleMedia), SexuaLobster, and Veritasium. You can view more details on the projects here (Screen Australia 2014).

In the years since the original program it has been opened up to both scripted narrative and documentary projects, with applicants able to propose the format of the project with everything from episodic series, stand-alone one-offs, or others being considered and has included alumni such as Aunty Donna, The RackaRacka, BrainCraft, SketchShe, and Superwog. The class of 2019 and Skip Ahead’s fifth round include Chloe Morello, Chloe Ting, Fury Fingers, Neel Kolhatkar and Piéra Forde, which according to Screen Australia (2019) “represent a range of voices from across Australia”. You can view more information on these projects here. As of the 2019 program, the projects funded through Skip Ahead have attained in excess of 40 million views on YouTube in total (ibid.).

Beyond the video views on YouTube, of the projects developed through the Skip Ahead program, a number have gone on to provide launching pads for their creators into other mediums and larger projects. Superwog leveraged their project into a full six-part series with Princess Pictures which premiered on Superwog’s YouTube channel before screening on ABC Comedy and iView (Screen Australia 2018). Similarly, 2017 recipients Skit Box have gone on to be included in the cast of Foxtel’s sketch show The Slotand have a feature film in development with Screen Australia (Skit Box n.d.). SketchShe have also managed to crossover following the phenomenal success of their YouTube channel with the team being recently announced as hosts of the world’s first online-only talent show, Megastars, shot in Los Angeles, and Might Car Mods have been signed to Discovery Networks (Groves 2017). As outlined by Farrell (2017, p.11), short-form content can also provide value to creators and traditional media in gaining insight into whether a longer-form product would resonate with audiences; it can form a testing ground for more resource heavy productions. This could be “because of the massive market for “eyeballs”, it makes sense to covet the spoils of the television industry, and this includes buying the resources of competitors, including streaming video sites, [and] commissioning new content” (Keane 2016, p.5436).

Healy and Cunningham (2017, pp.116-117) interviewed six previous recipients of Skip Ahead funding who identified four key benefits to their artistic and professional development the program provided:

• Artistic satisfaction and creative autonomy – by allowing the recipients to shift their focus from meeting YouTube’s ever-changing algorithms that prefer daily uploads to increase search rankings
• Allowed for higher production value, longer-form products – which creators have used as pitches to other distributers, including broadcast networks
• Cross collaboration with established screen producers – allowing for the creators to gain valuable insight into forging a long-lasting sustainable career in the Australian screen industry
• Artistic awareness-raising – allowing for creators to gain a greater understanding of the limitations and eccentricities of the YouTube platform compared to other platforms (i.e. YouTube’s preference for short-form narrative as opposed to long-form with high production values)

Action plan & recommendations

In order to fully realise the opportunities to fully embrace the digital disruption in the screen industry, the following recommendations are posited for Screen Australia and Google’s Skip Ahead program.

1. Focus on entrepreneurship and innovation

Services such as YouTube do not favour the creator. While there are numerous stories of the YouTube superstar earning millions a year from their videos, the reality is that a large percentage of them do not rely on ad revenue alone. As Martin (2015, p.8) attests viewers aren’t crazy about commercials with YouTube pre-roll advertisements (those that play prior to the video) often leading viewers to switch off and not view the video itself. He suggests that the average creator only think of ad revenue as supplementary revenue and that alternative monetization and diversified income stream opportunities need to become the focus. As such, “creators must harness free-flowing creativity, hard work and entrepreneurial business acumen to build up diversified income streams and make a decent living” (Healy and Cunningham 2017, p.115). Screen Australia should ensure that their Skip Ahead program provides guidance and mentorship in entrepreneurship and innovation, to help the program participants to diversify and ensure that their creative practice can be self-sustainable.

2. Focus on facilitating ongoing mentoring and the promotion of management skills and exposure

As identified by Healy and Cunningham (2017, p.115) many successful YouTubers  “have had to endure horror (non-YouTube) management contracts before they were savvy enough to secure trustworthy contracts and managers”. This is not a situation unique to YouTube or online media. Sudden fame and success can be detrimental to the careers of those who are unprepared for it. By facilitating ongoing mentorship relationships and promoting an understanding of the mechanisms of the business it can open up additional opportunities for creators for additional income streams, including product-placement deals, music sales, merchandising, crowd-funding, amongst many others.

3. Focus on mentorship and education for new and emerging creators

While the Skip Ahead program is aimed at established YouTubers, there is value in Screen Australia utilising the program as a way of connecting with a wider creator base. They could partner with online video creator conferences such as VidCon Australia to promote education and mentorship for emerging creators. This sector of amateur creators could become the future of Australia’s screen industry and developing this talent should be high on Screen Australia’s agenda. The ability to gain insight from industry leaders would be invaluable with nuggets such as  Valleyarm managing director, Victor Gugger’s suggestion that “aspiring YouTubers make one video per week for a year, connect with their fans, link all their social media to their YouTube channel, and make a video with an established YouTuber” (in Healy and Cunningham 2017, p.120).

Screen Australia’s partnership with Google in the Skip Ahead program is producing next generation talent who are well equipped to embrace digital disruption in the Australian screen industry. Through its focus on supporting the development of innovative online content and the telling of Australian stories, the program is addressing the needs of this changing industry. Programs like Skip Ahead are vital for the industry to survive and thrive as more and more viewers go online for their entertainment. As noted by Google (in Groves 2012) in this climate of digital disruption, “given the right opportunities, Australian creators will continue to tell Australian stories in new and innovative ways”.

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References

ABS – see Australian Bureau of Statistic

ACMA – see Australian Communications and Media Authority

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