The metaverse threat: 'TV will die with its audience'

TV companies will need to radically adapt themselves to the fast-evolving world of online entertainment if they hope to survive, experts have warned. Broadcasters are already playing catch-up with online gaming giants in the battle for the attention of young audiences and the advertising dollars that follow. On the horizon is the so-called 'metaverse' -- a loose term covering the growing eco-system of interactive online worlds, games and 3D meeting places that are already attracting millions of users. While older consumers are still wedded to traditional TV, viewership among under-35s has halved in a decade, according to Statista, and will drop precipitously as the metaverse develops. To reach young people, broadcasters will have to compete with gaming platforms like Roblox, Fortnite and Minecraft -- seen as precursors to the metaverse -- that are already establishing a dominant position. Half of all 9-12-year-olds in the U.S. use Roblox at least once a week, according to media research firm Dubit -- doing everything from playing games to watching concerts to just hanging out with friends. The audiences can be enormous: 33 million people watched rapper Lil Nas X perform on Roblox in 2020 -- more than three times the number that watched him on TV at the Grammys this week. Broadcasters must choose whether they are sticking with a shrinking market for traditional TV programming, or start bringing their characters and brands into metaverse platforms, said Matthew Warneford, co-founder of Dubit. TV companies have time to adapt, but they face a major challenge in catering at once to older people watching traditional broadcasts, middle-aged people shifting to streaming and young people wanting interactive and social entertainment. The national broadcaster is still in research mode, she said, toying with augmented and virtual reality to build immersive cultural and sporting experiences. The biggest challenge, however, may be financial. It was previously hard to move TV ads into the gaming world because they were created by individual companies 'who locked them down and captured all the value,' he said. Indeed, fashion and luxury labels are already making millions selling virtual clothes and accessories on Roblox, Fortnite and other platforms.