• Save
McKinsey Accelerated Change 2014
Upcoming SlideShare
Loading in...5
×
 

McKinsey Accelerated Change 2014

on

  • 636 views

McKinsey Accelerated Change 2014

McKinsey Accelerated Change 2014

Statistics

Views

Total Views
636
Views on SlideShare
629
Embed Views
7

Actions

Likes
5
Downloads
0
Comments
0

2 Embeds 7

https://www.linkedin.com 4
http://www.slideee.com 3

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

McKinsey Accelerated Change 2014 Presentation Transcript

  • 1. Accelerated change Turning the digital revolution into an opportunity for the media industry Eric Hazan Paris, June 20th INMA
  • 2. McKinsey & Company | 1 150 000 consumers iConsumer global research program, covering cross-platform dynamics
  • 3. McKinsey & Company | 7% Newspapers5% Radio TV Internet 20122001 33% 44% 18% 43% 45% 5% Average time spent per day on TV, Internet, Radio and Newspapers 5x time spent on the Internet between 2001 and 2012 The media industry is going through major changes 2
  • 4. McKinsey & Company | Net advertising revenue 8% 7% 11% 32% 26% 2006 12% 19% 13% 34% 15% Outdoor Magazines Newspapers 14% Radio TV Internet 2012 11% 3 2x Internet advertising revenue between 2006 and 2012 The media industry is going through major changes
  • 5. McKinsey & Company | Internet with the current business model does not solve everything 0 10 20 30 40 50 60 70 80 90 100 11% Internet Others 2017161514132012 European print media group revenue forecast % on 2012 index Need for new revenues 4
  • 6. McKinsey & Company | Adopting a diversified business model Developing multi access digital Adjusting costs You have the opportunity to be a groundbreaking actor towards a new stable media business model 5
  • 7. McKinsey & Company | Touch Here A new order in devices 2008 Mobile PC 6 Top iConsumer Trends for 2012 1
  • 8. McKinsey & Company | Top iConsumer Trends for 2012 2012 Mobile Tablets PC 7 Touch Here A new order in devices 1
  • 9. McKinsey & Company | Top iConsumer Trends for 2012 x2growth in applications use in 4 years 8 Planet of the Apps New modes for content and media consumption 2
  • 10. McKinsey & Company | Top iConsumer Trends for 2012 2008 Other internet Social 9 Social Saturation Platform shifts, monetization challenges 3
  • 11. McKinsey & Company | Top iConsumer Trends for 2012 2012 10 Social Saturation Platform shifts, monetization challenges 3 Other internet Social
  • 12. McKinsey & Company | Top iConsumer Trends for 2012 Digital is now the most influential touch point for all product categories for 12% to 29% of the connected population, depending on the category 11 Retail 3.0 New advertising challenge for media 4
  • 13. McKinsey & Company | 12 Top iConsumer Trends for 2012 12 Retail 3.0 New advertising challenge for media 4 Moreover borders are blurring as now 39% of the people are searching on their mobile within stores
  • 14. McKinsey & Company | Top iConsumer Trends for 2012 2008 Mobile data Mobile voice 1313 Communications breakdown Voice to all-data drives media consumption 5
  • 15. McKinsey & Company | Top iConsumer Trends for 2012 2012 Mobile data Mobile voice 1414 Communications breakdown Voice to all-data drives media consumption 5
  • 16. McKinsey & Company | 2008 Top iConsumer Trends for 2012 DVD, VOD, OTT Linear TV 1515 YouVideo Rise of user-controlled programming and distribution 6
  • 17. McKinsey & Company | 2012 Top iConsumer Trends for 2012 1616 YouVideo Rise of user-controlled programming and distribution 6 DVD, VOD, OTT Linear TV
  • 18. McKinsey & Company | 4 distinct profiles rising from data and voice usage! Minutes of usage per day Mobile voice usage 1 10 100 1,000 1 10 100 1,000 Omnivores 1 10% of total respondents Mobile data usage Selective users: “entertainers”  +  “practicals” 2 3 25% of total respondents Traditionalists4 65% of total respondents 1717
  • 19. McKinsey & Company | 65 100% Practicals + Entertainers + Omnivores Traditionalists Share of data usage (Volume of Data) 95 5 Share of population 35 2 segments representing only 35% of people consume almost all dataSelective users 1818 Key segment characteristics Share of usage, percent
  • 20. McKinsey & Company | Time spent on online media (video, audio, text) MoU day, indexed on traditionalist text spending 3x more time spent on online media than others Omnivores spend the most time on their digital devices and phones 19 Omnivores 11.0 Practicals 4.3 Entertainers 5.3 Traditionalists 3.4
  • 21. McKinsey & Company | Online subscription € / Month 10x more eager to pay Omnivores tend to spend more than their counterparts 20 Omnivores 10.7 Practicals 4.0 Entertainers 8.9 Traditionalists 1.1 Online magazine subscription Digital reader newspaper subscription Online newspaper subscription
  • 22. McKinsey & Company | Omnivores are willing to pay more for more qualitative content 21 Willingness to pay for additional service Share of respondents, percent 3x more time spent on online media than others Omnivores 28 Entertainers 22 Practicals 11 Traditionalists 3
  • 23. McKinsey & Company | Omnivores spend more time on digital content than other segments VIDEO AUDIO 76 51 38Omnivores 62 Entertainers 49 Traditionalists 24 61 28 1882 72 39 2222 Time spent by content type Average minutes per day Digital video Regular TV Audio digital AM/FM Omnivores spend 2.5x more time on digital video, and 2x on audio
  • 24. McKinsey & Company | Video is the fastest growing premium ad format ENTERTAINMENT Interactive multimedia experience ADVERTISING The next frontier for premium advertisers+ PUBLISHERS WITHOUT VIDEO INVENTORY will be less competitive on drawing cross platform spending Online 2323
  • 25. McKinsey & Company | Video traffic and advertising spend go digital EUROPE EXAMPLE 2016 11,042 2013 4,947 2011 2,290 660 2016 2,564 2013 1,211 2011 Digital video traffic 2011-16e, petabyte per month Digital video advertising spend EUR millions, 2011-16e x6growth x4growth 2424
  • 26. McKinsey & Company | US is still leading the OTT wave, but Europe is catching up and OTT consumption continues to grow 32% 15%25% 20% PENETRATION RATE OF OTT SERVICES 2525
  • 27. McKinsey & Company | OTT viewing has shifted away from PCs to tablets and mobile devices 26 OTT/streaming share across screens Index, 2009 = 100 From 6% to 20% in 4 years only 100 6% 71% 23% Mobile + tablet PC TV 20122009 181 20% 88% 74%
  • 28. McKinsey & Company | Mobile data usage is rapidly growing, driven largely by mobile video 27 US consumer data usage Average MB per month of mobile data x5 between 2008 and 2013 2013 1,959 2008 441 2 GB Email Web Audio Video 1 GB Typicalusagetoday
  • 29. McKinsey & Company | Connected TV market is still not significant... …  but  the  “Must  Have  Apps”  are   all Smart TV apps as Netflix, You Tube, Hulu, HBO Go, etc. 2828 The top TV apps are video brands USA EXAMPLE
  • 30. McKinsey & Company | 2929 All players along the value chain are moving on OTT video
  • 31. McKinsey & Company | Number of funded channels per country Thematic channels might switch online 131313 21 114 YouTube sponsors 114 channels in the USA… …  and  started  doing  so   in other countries 3030
  • 32. McKinsey & Company | Content owners leverage new distribution outlets and test direct to consumer approaches SOURCE: BusinessWeek; McKinsey USD 8.2 billion in revenues (2012), 9% growth 70% of mobile consumption of sports content happening on ESPN properties 3131 Multi-channel/ -screen  distribution… TV/Cable Radio Online Mobile/Apps Magazines …  going  hand  in  hand  with  higher   content cost USD 5.6 billion for MLB Baseball rights until 2021 (TV/Radio, International, Mobile) USD 700 million p.a. vs. USD 350 million under previous contract
  • 33. McKinsey & Company | Create content Earn advertising revenues 3232 Frontiers are fading
  • 34. McKinsey & Company |SOURCE: Wall Street Journal Media Kit; YouTube Device agnostic distribution – own domains, YouTube, mobile, Roku, Apple TV etc. Rich content pipeline with more than 100 hours of video content produced per month Attractive, large audience 72.5% Male 50.6% Ages 35-64 33.6% HHI $100K+ 41.6% watch videos online 28.2 million monthly video streams (July 2012) 3333 Some publishers know how to increase their advertising revenue by targeting their viewers
  • 35. McKinsey & Company | 34 Use your content and audience to drive sales for others Create deep partnerships with e-commerce players SOURCE: McKinsey's Next Generation Media Catalog the taste and preference of the audience Elicit and capture consumers’   signals of intent Create commerce- friendly touch points We’re  all  in  the  lead  generation  business  now!
  • 36. McKinsey & Company | 35SOURCE: McKinsey's Next Generation Media MOBILE-IZE invest for the long run ADAPT BUSINESS MODELS be flexible and diversify INDIVIDUALIZE find segments, tailor offerings ERASE FRONTIERS between media and e-commerce Four recommendations for media companies to win in the new digital landscape 1 2 3 4
  • 37. Accelerated change Turning the digital revolution into an opportunity for the media industry Eric Hazan Paris, June 20th INMA