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Redefining the Cord by Playing Offense in the Rapidly Changing TV Industry

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Consumers continue to shift their video consumption away from traditional TV screens to tablets and mobile phones. That’s why TV providers need to more aggressively redefine the TV package to remain relevant to today’s consumers and aligned with consumers’ evolving viewing habits. Learn about the three key actions for creating more relevant offerings that drive greater viewer loyalty and bigger profits.

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Redefining the Cord by Playing Offense in the Rapidly Changing TV Industry

  1. 1. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Redefining the cord by playing offense in the rapidly changing TV industry
  2. 2. A dramatic shift • Total video consumption is expected to increase at a 0.8% CAGR from 2016 to 2020. • But the proportion of time viewers consume video over “second screens” such as tablets and mobile phones is expected to grow 13% by 2020, helped by a 5.8% boost in connected devices. • Leading companies lost nearly 700,000 subscribers in the second quarter of 2016 and TV providers continue to reach record lows. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Consumers continue to shift their video consumption away from traditional TV screens to tablets and mobile phones.
  3. 3. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. A wake-up call TV providers need to more aggressively redefine the TV package to remain relevant to today’s consumers and aligned with consumers’ evolving viewing habits. Specifically, they need to leverage their large base of existing consumers and content relationships to aggregate video products with relevant, personalized content available anyplace, anytime, via any device. • 80% of viewership is concentrated on 15 channels and consumers only watch an average of 20—30% percent of subscribed content.
  4. 4. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. A mindset switch TV providers have to fundamentally switch their mindsets. Instead of playing defense and trying to protect the legacy business, they need to go on offense. That means investing in analytics to understand who their consumers are and innovatively serving up what they really want to watch.
  5. 5. A way forward “Playing offense” requires taking aim at price and content, the two key drivers of viewership. Three actions are key to influencing both of these factors: Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 1. Reduce pricing to increase profits. Consumers continue to watch more video, but they concentrate on a smaller range of content. Providers need to abandon their “more channels for more money” legacy strategy and offer smaller packages tailored to what people watch. • By using viewership analytics to offer smaller, flexible and more relevant packaging, TV providers can mitigate cord-cutting and improve overall package margins by at least 5—10%.
  6. 6. A way forward “Playing offense” requires taking aim at price and content, the two key drivers of viewership. Three actions are key to influencing both of these factors: Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 2. Do more with anytime, anywhere viewing. Time-shifted and place-shifted viewing continues to grow in popularity among consumers. Providers need to continually revisit their feature roadmap to make sure they are delivering a richer in-home and out-of-home experience. • In 2015, 47% of all video content hours was time-shifted, and consumers under 40 years watched more than 75% of their content at times other than the scheduled airing.
  7. 7. A way forward “Playing offense” requires taking aim at price and content, the two key drivers of viewership. Three actions are key to influencing both of these factors: Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 3. Provide cross-platform content and recommendations. Consumers expect TV providers to carry content from Over-the-Top (OTT) providers. Providers should aggregate content across disparate sources and platforms and deliver very specific, personalized and timely content suggestions across all content. • 79% of consumers prefer a bundled content solution from the same provider.
  8. 8. LEARN MORE about how providers can redefine the TV package and viewership experience with our full report: Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Redefining the cord by playing offense in the rapidly changing TV industry @AccentureStrat Follow us on Linkedin

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