Breaking Down Barriers: Amagi’s Srini KA Discusses The Transformation Of Local News In The Age Of FAST
This is the second of five Innovator Spotlight articles from our newest TVREV Special Report, Local TV: Perils And Promise In The Age Of Streaming, which you can download for free.
“We're seeing more personalization and micro-targeting. I believe we're moving towards a world where the news channel itself will be personalized to what we want.” says Amagi’s Co-Founder, Srini KA, in this wide-ranging interview about the ways that local broadcasters are making use of the FAST services to reach new and extended audiences.
Alan Wolk (AW):How are local broadcasters making use of streaming? Are they setting up their own services or launching on platforms like Local Now and Fire TV?
Srinivasan KA (SK): It's a combination of both. We work with nine of the top ten station groups and we've seen a mix of strategies. Some customers operate their own apps and also distribute through third parties. Others, like NBC, initially only had third-party apps but have now added Peacock. Some station groups that don't have a large owned and operated operation primarily focus on third-party platforms like Amazon News, which has become one of the biggest platforms for local news channels. It's a mix of both, and it's also a function of where the consumers are. The key is to be where your audience is, and that's what these broadcasters are doing.
AW: What challenges do they face when trying to get their content onto streaming?
SK: There are a couple of challenges. One is a business challenge related to retrans fees. Broadcasters have a large revenue stream coming in from retrans fees, but if the same content is available for free on the FASTs, those fees could disappear. The other challenge is the cost and complexity of setting up a news operation for the FASTs. Replicating a local news operation for streaming can cost millions of dollars. It's not just about taking the feed and putting it on a FAST, it's about creating a whole new operation. This involves setting up new workflows, training staff, and ensuring that the operation can run smoothly 24/7.
AW: Can you tell me a bit about what Amagi does and how you help these broadcasters?
SK: We provide a full news solution, which is unique for FASTs. Our solution is designed to handle the complexities of running a news operation on FAST platforms, which is quite different from traditional broadcasting.
Firstly, we offer a master control platform where broadcasters can program between different feeds. This means they can switch between live feeds, pre-recorded content, and other sources to create a seamless viewing experience. This is crucial for news operations, where the need to switch between different types of content is frequent.
Secondly, our platform allows broadcasters to record these feeds and play them back-to-back. This is particularly useful for news operations that need to repeat certain segments or want to schedule their content in a specific way.
Thirdly, we can handle complex routing and overlay graphics. This means that broadcasters can add lower thirds, tickers, and other graphics to their streams. This is a key part of making a news broadcast look professional and engaging.
Fourthly, we allow real-time operator switching. This means that an operator can manually switch between different feeds in real time. This is particularly important for news operations, where breaking news or live events may require immediate attention.
In addition to these technical capabilities, we also help broadcasters distribute their content to their own platforms and third-party platforms. This is crucial in the FAST ecosystem, where distribution can be more complex due to the variety of platforms and devices viewers use.
Finally, in some cases, we also help broadcasters monetize their content by selling ads. This is done through a server-side ad insertion solution that allows them to dynamically insert programmatic ads into their streams. This is a key part of making a FAST operation financially viable.
AW: How does the day-to-day operation work? Do you train someone at the station to use the software?
SK: Yes, they usually have a master control operator who runs the channels on a daily basis. For example, NBC mentioned at their fireside chat at NAB that they had about three or four operators running 17 or 18 channels for them. So, it's a lean operation. They don't need a large team to run these channels. We provide the necessary training to ensure that their staff can effectively use our software and manage the operation.
AW: How do you handle advertising? Do you work with third-party vendors?
A: We provide a server-side ad insertion solution that allows local stations to dynamically insert programmatic ads. Whether they partner with platforms such as Premion or utilize their in-house sales teams, they can easily log their digital campaigns onto their ad server. From there, we handle real-time programmatic insertion. We also help them plug into other programmatic demand sources likeGoogle Ad Server, Xander, The Trade Desk, or Magnite. Additionally, we bring our own demand to provide better monetization. We have a large demand pool that we bring to the table, which helps them monetize better. This multipronged approach ensures that they can maximize their ad revenue.
AW: How is the data you collect used to refine programming and advertising?
SK: The data provides real-time insights that can be used to improve the station’s programming. For example, if a breaking news event is getting a lot of attention, they might decide to do more of that kind of coverage. They can also use the data to sell to advertisers and show the kind of engagement they're seeing. The data is very granular. They can see how many people are watching, what they're watching, and how long they're watching. This allows them to make data-driven decisions about their programming and advertising.
AW: What future trends are you seeing in the industry?
SK: We're seeing local news stations using FAST to expand beyond their traditional offerings. For example, NBC has state feeds for their Spanish stations, while Cox has started with hyperlocal TV. I also believe that FAST will eventually open up sources where local news can dynamically sell in content based on what the user wants—not just from the publisher’s own news sources, but from third-party news sources as well.
AW: What advice would you give to a local broadcaster who is first starting to look at moving into FAST?
SK: The most successful broadcasters on FAST have a strong live component. Also, it's important to be where the consumers are. If consumers are watching FAST, you need to be there. Lastly, while setting up a FAST channel might seem complex, with the latest technologies, it's not that big a deal. You can create a FAST channel and run it with a lean operation at a dramatically lower cost and still be on par in terms of the look and feel and the kind of features that you provide with your broadcast. It's not as complex or as expensive as it used to be. It's about embracing the change and leveraging the opportunities that FAST platforms offer.
