Digital revolution: Six trends for the media industry


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The digital revolution has shaken the publishing industry. Six trends, however, highlight new opportunities as well. The explosion in devices, apps, social media, product research online, data over mobile usage on devices, and video consumption online are radical changes with big implications for the media industry.

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Digital revolution: Six trends for the media industry

  1. 1. AcceleratedchangeTurning the digital revolution intoan opportunity for the media industryEric HazanParis, April 25thForum des mediasSino-Français 2013
  2. 2. McKinsey & Company |7%200143%45%5%NewspapersRadioTVInternet20125%33%44%18%Average time spent per day on TV,Internet, Radio and Newspapers4xtime spent onthe Internetbetween 2001and 2012The media industry is going through major changes1
  3. 3. McKinsey & Company |Net advertising revenue8%7%11%32%26%200612%19%13%34%15%OutdoorMagazinesNewspapers14%RadioTVInternet201211%22xInternetadvertisingrevenuebetween2006 and2012The media industry is going through major changes
  4. 4. McKinsey & Company |Adopting a diversifiedbusiness modelDeveloping multiaccess digitalAdjusting costsYou have the opportunity to be a groundbreaking actor towardsa new stable media business model3
  5. 5. McKinsey & Company |Top iConsumer Trends for 20122012MobileTabletsPC4Touch HereA new order in devices1
  6. 6. McKinsey & Company |Top iConsumer Trends for 2012x2growth inapplicationsuse in 4 years5Planet of the AppsNew modes for content and media consumption2
  7. 7. McKinsey & Company |Top iConsumer Trends for 201220126Social SaturationPlatform shifts, monetization challenges3OtherinternetSocial
  8. 8. McKinsey & Company |Top iConsumer Trends for 2012Digital is now the mostinfluential touch point forall product categories for12% to 29%of the connectedpopulation, dependingon the category7Retail 3.0New advertising challenge for media4
  9. 9. McKinsey & Company |Top iConsumer Trends for 20122012MobiledataMobilevoice88Communications breakdownVoice to all-data drives media consumption5
  10. 10. McKinsey & Company |2012Top iConsumer Trends for 201299YouVideoRise of user-controlled programming and distribution6DVD,VOD,OTTLinear TV
  11. 11. McKinsey & Company |4 distinct profiles rising from data and voice usage!Minutes of usage per dayMobile voice usage1 10 100 1,0001101001,000Omnivores110%of total respondentsMobile data usageSelective users:“entertainers” + “practicals”2 3 25%of total respondentsTraditionalists4 65%of total respondents1010
  12. 12. McKinsey & Company |65100%Practicals +Entertainers +OmnivoresTraditionalistsShare of datausage(Volume of Data)955Share ofpopulation352 segments representing only 35% of people consume almost all dataSelectiveusers1111Key segment characteristicsShare of usage, percent
  13. 13. McKinsey & Company |Online subscription€ / Month10xmore eagerto payOmnivores tend to spend morethan their counterparts12Omnivores 10.7Practicals 4.0Entertainers 8.9Traditionalists 1.1Online magazine subscriptionDigital reader newspaper subscriptionOnline newspaper subscription
  14. 14. McKinsey & Company |Omnivores are willing to pay more for more qualitative content13Willingness to pay for additional serviceShare of respondents, percent3xmore timespent ononline mediathan othersOmnivores 28Entertainers 22Practicals 11Traditionalists 3
  15. 15. McKinsey & Company |Video is the fastest growing premium ad formatENTERTAINMENTInteractive multimediaexperienceADVERTISINGThe next frontier forpremium advertisers+PUBLISHERS WITHOUT VIDEO INVENTORYwill be less competitive on drawing crossplatform spendingOnline1414
  16. 16. McKinsey & Company |Video traffic and advertising spend go digitalEUROPE EXAMPLE201611,04220134,94720112,290 66020162,56420131,2112011Digital video traffic2011-16e, petabyte per monthDigital video advertising spendEUR millions, 2011-16ex6growth x4growth1515
  17. 17. McKinsey & Company |US is still leading the OTT wave, but Europe is catching up and OTTconsumption continues to grow32% 22% 20%29%PENETRATION RATE OF OTT SERVICES1616
  18. 18. McKinsey & Company |OTT viewing has shifted away from PCs to tablets and mobile devices17OTT/streaming share across screensIndex, 2009 = 100From6% to20%in 4 yearsonly1006%71%23%Mobile + tabletPCTV2012200918120%88%74%
  19. 19. McKinsey & Company |Mobile data usage is rapidly growing, driven largely by mobile video18US consumer data usageAverage MB per month of mobile datax5between2008 and201320131,95920084412 GBEmailWebAudioVideo1 GBTypicalusagetoday
  20. 20. McKinsey & Company | 19Use yourcontent andaudienceto drive salesfor othersCreate deeppartnershipswith e-commerceplayersSOURCE: McKinseys Next Generation MediaCatalog thetaste andpreference ofthe audienceElicit andcaptureconsumers’signals of intentCreatecommerce-friendly touchpointsWe’re all in the lead generation business now!
  21. 21. McKinsey & Company |