pulse of media: navigating the complexity of an evolving digital world

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Pulse of Media Navigating the Complexity of an Evolving Digital World 2015

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Pulse of MediaNavigating the Complexity of an Evolving Digital World2015

Copyright © 2016 Accenture. All rights reserved. 2

Now in its third edition, Accenture’s Pulse of Media depicts an industry experiencing massive disruption and rapid evolution. With a pronounced decline in video viewing on TV, and an increasing need for quality, video is at an inflection point. Operating models are being reinvented to compete with disrupters unimagined just a few short years ago. The democratization of content creation, the need to evolve content delivery and the mandate to evolve content business models are driving traditional content providers to transform into digital product distribution companies.

Recognizing that operating in this continuously evolving ecosystem requires monitoring many ongoing trends at different stages of maturity, this year’s report identifies the established, in-play and emerging trends for media and entertainment executives to watch.

To learn more, please visit www.accenture.com/pulseofmedia

Copyright © 2016 Accenture. All rights reserved. 3

Pulse of Media 2015

• Inflection point for video consumption• Quantity is good but quality is better• Consumer kings and kingmakers for content

Golden Age of Video Consumption

• The Content "Renaissance" • Delivering broadcast availability

with broadband flexibility• Reaching the digital generation

A New Media Paradigm

• Service differentiation with digital obsession • Adopting the ways of online disruptors • Re-imagining monetization

Shift from Protection to Innovation

Core Themes

Copyright © 2016 Accenture. All rights reserved. 4

Golden Age of Video ConsumptionInflection Point for Video Consumption

Anytime, anywhere video viewing has been a theme emerging for several years. It has now become mainstream, representing aninflection point in video consumption as consumers devour all lengths of video on all types of devices wherever and whenever it is convenient for them. As a result, TV viewing decline is pronounced.

Copyright © 2016 Accenture. All rights reserved. 5

Golden Age of Video ConsumptionQuantity is Good But Quality Is Better

While there are volumes of content now available, and consumers are attracted to sources that provide access to a lot of content, when it comes to paying for content—quality matters. Content that is more professionally produced is upping the game.

Copyright © 2016 Accenture. All rights reserved. 6

Golden Age of Video ConsumptionConsumer kings and kingmakers

The consumers’ role as king, fully in control of their media and entertainment experiences, is now well established. They are drawn to shows, not channels, and are building their own bundles to get the content they want—even if that means sharing their wallet across a number of services. Not only are they in control of their experience, they are also becoming “kingmakers”, increasingly in control of which brands and which content succeed.

Copyright © 2016 Accenture. All rights reserved. 7

A New Media ParadigmThe Content “Renaissance”

The democratization of content production, new financing mechanisms and alternative channels are spurring a content renaissance. Augmented experiences and a world of connected devices will open up new outlets for creative content development.

Copyright © 2016 Accenture. All rights reserved. 8

A New Media ParadigmDelivering Broadcast Availability with Broadband Flexibility

With the growth in the number of devices to support, increased consumption on new devices and increased competition from over-the-top providers, the need to continually improve and evolve infrastructure is critical. Media companies will need to manage both providing the best content for the device and the ability to handle simultaneous viewing at scale.

Copyright © 2016 Accenture. All rights reserved. 9

A New Media ParadigmReaching the Digital Generation

Reaching the digital generation of consumers requires media companies to be tech forward while addressing consumer needs for content anywhere, anytime on any device. The evolving media value chain will require traditional content providers to transform into digital product distribution companies taking advantage of enhanced intelligence about context, social networking, measurement across all screens, and the ability to deliver personalization at scale.

Copyright © 2016 Accenture. All rights reserved. 10

Shift from Protection to InnovationService Differentiation with Digital Obsession

In the past, traditional media companies have differentiated on the picture quality of content. Today basic forms of competition,such as better video resolution, are no longer enough to meet the needs of a more sophisticated media hungry consumer. As competition evolves, media companies are experimenting with new forms of content, context and bundles to capture the digitallyobsessed consumer.

Copyright © 2016 Accenture. All rights reserved. 11

Shift from Protection to InnovationAdopting the Ways of Online Disruptors

Challenged by online disruptors that are unencumbered by old business models, traditional media companies are figuring out strategies to compete in this new world. Consolidation is occurring and innovation is happening at every level of the value chain— from infrastructure to delivery to content, devices, audience segmentation, consumption and data monitoring. Media companies will need to have the right partners in place and a modular, interoperable operating model that is able to adjust to whichever direction video viewership heads.

Copyright © 2016 Accenture. All rights reserved. 12

Shift from Protection to InnovationRe-imagining Monetization

As competition increases with each new disrupter, traditional players are forced to innovate with new data and content bundles, new abilities to measure impact and as-yet-unimagined ways to monetize advertising. As media companies re-imagine monetization from bundles to advertising they will need to determine what is the right mix for various consumers, and address the advertising and contractual implications of various monetization opportunities.

To learn more, please visit www.accenture.com/pulseofmedia

Francesco Venturini Global Managing DirectorAccenture Media & Entertainment [email protected]

Robin Murdoch Global Managing DirectorAccenture Internet & Social [email protected]

Bikash Mishra Senior ManagerAccenture Strategy [email protected]

Raffaella Masoero Senior ManagerMedia & [email protected]

Copyright © 2016 Accenture. All rights reserved. This document is produced by consultants at Accenture as general guidance. It is not intended to provide specific advice on your circumstances. If you require advice or further details on any matters referred to, please contact your Accenture representative. This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Accenture and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks.

About Accenture Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.