This document discusses the shifting media landscape as audiences fragment across multiple platforms and gain more control over their content consumption. It outlines the evolution from traditional linear broadcasting to on-demand viewing across devices. New smart TVs and streaming services are challenging traditional content providers by bypassing them and delivering content directly. Forecasts predict significant revenue growth in on-demand viewing and over-the-top services as audiences continue migrating to more personalized and on-demand experiences across multiple devices. This paradigm shift requires the industry to innovate and adapt to new models of content delivery and monetization.
The future of entertainment & media in a hyperconnected world, india and paki...SUN&FZ Associates
Contents for interconnected platforms in a hyper-connected world need to be carefully tailored to create synergy between delivery and receiving ends.
Focus on contents instead of the carriers is need of the time.
The internet is coming to your TV set, along with all the targeting and interactivity of digital media. This will make true Video on Demand (VOD) a reality and potentially replace traditional TV advertising models.
For my Capstone at Flagler College, I conducted primary and secondary research to establish a marketing and public relations campaign to deter consumers from pirating Netflix Original content.
The future of entertainment & media in a hyperconnected world, india and paki...SUN&FZ Associates
Contents for interconnected platforms in a hyper-connected world need to be carefully tailored to create synergy between delivery and receiving ends.
Focus on contents instead of the carriers is need of the time.
The internet is coming to your TV set, along with all the targeting and interactivity of digital media. This will make true Video on Demand (VOD) a reality and potentially replace traditional TV advertising models.
For my Capstone at Flagler College, I conducted primary and secondary research to establish a marketing and public relations campaign to deter consumers from pirating Netflix Original content.
How the Digital Revolution is Disrupting the TV Industry Suman Mishra
This is a BCG report on the TV industry in US and it talks about how the TV industry has seen “shifts” from inception, but this time the pace with which its changing is so different. It has done ample surveys and has lot of verified facts which makes this report so rich and conclusive.
The core trends fueling disruption this time are
a. Online and mobile will exceed Facilities based viewing
b. On demand viewing will exceed live, linear viewing
c. New companies and business models in online viewing
d. Networks are experiencing the collapse of the middle and rise of “long tail”
e. Content creators and right holders are capturing a greater value share than ever
The 4 disruptive scenarios in making which will “accelerate” the change are
a. The universal remote: Global, all-inclusive navigation solving the discovery problem
b. The walled garden: exclusive entertainment becomes the critical strategic asset
c. Direct to Consumer takes on traditional TV bundles
d. Live TV online
Data Con LA 2018 - How is Blockchain Changing Relationships in Entertainment ...Data Con LA
How is Blockchain Changing Big Data Relationships in Entertainment by Mariana Danilovic, CEO, Hollywood Portfolio
It could be a presentation or a panel about big data issues in Entertainment that are driving adoption of blockchain platforms.
According to eMarketer, as of 2019, there are over 182 million OTT subscribers in the United States, that’s more than half of the country’s population.
Fact:
Presented by Samantha Stockman: June 11, 2019
Everyone says that TV is dying, but we disagree. TV is not dying, but how we consume content is shifting to OTT. This deck from The Media Kitchen's OTT Committee will give a background on the rise of OTT, arm readers with the basics to navigate and evaluate partners in the ever-changing space, and provide a view on where we think OTT is headed.
Strategy& consultants explore the trend of traditional media companies buying up new multichannel networks (MCNs) in pursuit of online audiences. To get the maximum advantage from these MCNs, they say, media companies will have to diversify and monetize them—and create new content without losing the unique edge that makes them popular with their audience. For more insights, visit www.strategy-business.com.
We kicked off a new programming season with a Luncheon Thursday, September 19th at Fogo de Chao, downtown. The room was filled with 40+ marketers all eager to learn how Vladimir Jones and The Broadmoor use new media to put heads in beds. The presentation was packed with useful facts and real life examples. Check it out!
The policy and prospects of China’s fixed broadband Market liberalizationValue Partners
By Jane Hou , Partner, and Adam Meng, Associate of the Beijing office, and Taylor Lam, SEM of the Hong Kong office
A new perspective devoted to the “policy on the pilot of fixed broadband market liberalization” in China, that encourages civil capital to enter fixed broadband market in various models, a milestone of state monopolized industries’ opening up
the presentation shows how the world is consuming media. This report compares all categories of media advertising including audio, digital, mobile and OOH . The report also shows region wise media consumtion
How the Digital Revolution is Disrupting the TV Industry Suman Mishra
This is a BCG report on the TV industry in US and it talks about how the TV industry has seen “shifts” from inception, but this time the pace with which its changing is so different. It has done ample surveys and has lot of verified facts which makes this report so rich and conclusive.
The core trends fueling disruption this time are
a. Online and mobile will exceed Facilities based viewing
b. On demand viewing will exceed live, linear viewing
c. New companies and business models in online viewing
d. Networks are experiencing the collapse of the middle and rise of “long tail”
e. Content creators and right holders are capturing a greater value share than ever
The 4 disruptive scenarios in making which will “accelerate” the change are
a. The universal remote: Global, all-inclusive navigation solving the discovery problem
b. The walled garden: exclusive entertainment becomes the critical strategic asset
c. Direct to Consumer takes on traditional TV bundles
d. Live TV online
Data Con LA 2018 - How is Blockchain Changing Relationships in Entertainment ...Data Con LA
How is Blockchain Changing Big Data Relationships in Entertainment by Mariana Danilovic, CEO, Hollywood Portfolio
It could be a presentation or a panel about big data issues in Entertainment that are driving adoption of blockchain platforms.
According to eMarketer, as of 2019, there are over 182 million OTT subscribers in the United States, that’s more than half of the country’s population.
Fact:
Presented by Samantha Stockman: June 11, 2019
Everyone says that TV is dying, but we disagree. TV is not dying, but how we consume content is shifting to OTT. This deck from The Media Kitchen's OTT Committee will give a background on the rise of OTT, arm readers with the basics to navigate and evaluate partners in the ever-changing space, and provide a view on where we think OTT is headed.
Strategy& consultants explore the trend of traditional media companies buying up new multichannel networks (MCNs) in pursuit of online audiences. To get the maximum advantage from these MCNs, they say, media companies will have to diversify and monetize them—and create new content without losing the unique edge that makes them popular with their audience. For more insights, visit www.strategy-business.com.
We kicked off a new programming season with a Luncheon Thursday, September 19th at Fogo de Chao, downtown. The room was filled with 40+ marketers all eager to learn how Vladimir Jones and The Broadmoor use new media to put heads in beds. The presentation was packed with useful facts and real life examples. Check it out!
The policy and prospects of China’s fixed broadband Market liberalizationValue Partners
By Jane Hou , Partner, and Adam Meng, Associate of the Beijing office, and Taylor Lam, SEM of the Hong Kong office
A new perspective devoted to the “policy on the pilot of fixed broadband market liberalization” in China, that encourages civil capital to enter fixed broadband market in various models, a milestone of state monopolized industries’ opening up
the presentation shows how the world is consuming media. This report compares all categories of media advertising including audio, digital, mobile and OOH . The report also shows region wise media consumtion
Are you looking a meditation circle,testimonials, psychic activities then come our Traveling Psychic Medium. For more info visit our website:-www.mipsychics.com
BI Report- The Future of Pay TV summaryKeith Johnson
The impact of OTT TV services and the quest for a ‘better TV’ experience.
The arrival of interactive OTT (over-the-top) TV platforms is opening up direct, non-traditional routes to market for brands, rights owners, content publishers and production companies, and with the consumer firmly in the driving seat, the issue of consumer choice of TV services is the competitive motivator now at the heart of business strategy for both incumbent Pay TV operators and the new breed of consumer –facing content aggregators entering the market.
The clash of competing mind-sets is going to be intriguing as broadcast and Internet businesses build new services on the centre ground of hybrid TV delivery of consumer entertainment, anytime, anywhere the viewer wants to access it. The one thing the general viewer does not want is complexity, driven by the overt clashing technologies in poorly designed and difficult to use viewing experiences.
This report lays out the impact of video content convergence across multiple screens and consumer devices on the Pay TV business and includes a comprehensive look at the impact of connected consumer devices and social media on the future Pay TV and brand advertising engagement models.
This report outlines the key findings from over 100 senior survey respondents in the media and entertainment industry.
In partnership with MarkLogic, we wanted to find out where the major challenges and opportunities lie and what players in the industry need to do to survive.
Enjoyed this report?
You may also be interested in our upcoming conference, The Future of Broadcasting, to be held 27th & 28th June in London.
Find out more on the website: http://bit.ly/1NViQ7w
4 things that brands are doing to win in the new video landscapeLucas Modesto
Back in the 1950s, when TV was first gaining popularity as an entertainment medium, advertisers had it fairly easy. With only three networks and one viewing screen, the audience was highly concentrated. To this day, I Love Lucy still holds the record for the highest Nielsen average for a TV season—67.3. Families around America tuned in weekly for a season that started with Lucy battling a conveyor belt at a chocolate factory and eventually welcomed Ricky Jr. to the world.1
Because of this concentrated TV viewing audience, advertisers knew when, where and what the whole country was watching without the need for sophisticated technology, data collection, or analysis.
Today’s television viewing landscape is very different. While TV screens still account for 91% of our viewing time,2 we’re now able to watch great video content wherever, whenever and however we want. According to Nielsen, traditional TV watching has declined 44% for viewers 18-24 years old and 32% for viewers 25-34 years old over the past five years.3 Meanwhile, streaming video is on the rise. In 2017, 59% of American households had a streaming video subscription, compared to just 38% in 2014.4
M&E Industry to Reach US$2.6 Trillion by 2025- Use Cases of Data Analytics in...SG Analytics
One positive development in what was generally a challenging year for the global entertainment and media sector was the rise in popularity of movie and television material streamed over the internet (also known as "over-the-top," or OTT).
According to a recent analysis from the global consulting firm PwC, the sector, which saw a decline in revenue due to the pandemic, is predicted to return quickly and rise by more than a quarter by 2025. https://us.sganalytics.com/blog/data-analytics-in-media
It's the Battle of the Century, and the front line is in our living room. Billions are at stake as Media giants, Tech titans and Internet innovators revolutionise the Future of TV.
Four forces reshaping the digital advertising landscapePwC España
Móviles y vídeo están llamados a cambiar los hábitos de los usuarios relacionados con el aumento del uso de nuevas tecnologías y el consumo de contenidos multimedia, expandiendo así el grado de interacción y el volumen del mercado de la publicidad, accesible ya en todo momento a través de los 4 canales protagonistas del estudio.
Similar to From One Audience to Audiences of One (20)
Four forces reshaping the digital advertising landscape
From One Audience to Audiences of One
1. From one
audience to
the audiences
of one
What the communications and media industry
needs to know about content consumers today
Business white paper
Khalid Naseem
World Wide Principal Consultant
2. Table of contents
3 History
3 A paradigm shift
4 Content delivery evolution
7 Complications and challenges
9 CSP solution
10 Why HP?
11 About HP SCS
11 For more information
3. 3
History
In the beginning and for a long time…
Television has an inspiring past, ripe with innovation and popular
cultural influence. Since its coming of age in the mid 20th century,
generations of TV viewers have happily embraced their broadcast
experience. For the industry, making a connection with consumers
was a pretty straightforward, one-to-many experience… until
recently!
Today, audiences are becoming increasingly fragmented, splicing
their time among a myriad of media choices; consumers have
migrated to more specialized niche content through cable and
multichannel offerings. Now, with the growing availability of
on-demand, self-programming, and search features, audiences are
moving beyond niche to individualized viewing.
A paradigm shift
With increasing competition from convergence players in TV,
telecommunications, and the Internet, the industry is confronting
unparalleled complexity, dynamic change, and pressure to innovate.
Audiences
Many people still listen to radio and watch television programs
as they are broadcast, in real time, over established terrestrial,
cable, and satellite networks; in other words, conventional linear
broadcasting for a “lean back” audience. Additionally, non-linear
“lean forward”1
listening or viewing, for example, using a personal
video recorder such as Sky+ or Tivo to watch programs after they
have been transmitted or downloading a program onto an iPad, is an
area of viewer experience that is growing rapidly.
“Media convergence is the flow of content across
multiple media platforms, the cooperation
between multiple media industries, and the
migratory behavior of media audiences.”
—Henry Jenkins on Collective Intelligence and
Convergence Culture
However, as people’s habits are changing, they are interested in
greater control and choice—not only over what they listen to or
watch, but also when, where, how, and with whom they listen or
watch it. This growing enthusiasm for on-demand listening and
viewing is accompanied by a rapid growth in the use of the Internet
as a broadcasting medium in its own right from podcasting to
Internet protocol television (IPTV) to replay TV. BBC is a prime
example of a leader in this field with their BBC iPlayer technology,
which is being “skinned” for other UK broadcasters.
Analysis suggests that over the next five years linear TV viewing
will fall by 20–30 percent, replaced largely by increased use of
on-demand services.2
A similar pattern is expected for audio
services. In both cases, there is likely to be a significant increase in
the overall level of listening and viewing, as audiences make greater
use of PCs, portable audio and video, tablets, linear, and non-linear
devices outside home. These trends promise to bring considerable
benefits to the audience as a whole and a headache for the industry.
Content consumption is rapidly going to become the norm;
audiences are already becoming accustomed to having access to
the content that they desire rather than what is being supplied. This
shift can be best accommodated in the Long Tail effect.3
Convergence
Media convergence occurs when old and new media intersect; when
grassroots and corporate media intertwines in such a way that the
balance of power between media producers and consumers shifts in
unpredictable ways. Henry Jenkins, a highly respected media analyst
and one of the foremost leading experts on the convergence culture
paradigm, states that, media convergence is “...the flow of content
across multiple media platforms, the cooperation between multiple
media industries, and the migratory behavior of media audiences.”
Another view of this is much simpler; media convergence can be seen
as not the reduction of devices, but the expansion of channels to
multiple content combinations.
1
The concept of lean-forward is functionality that allows audience to engage with, that
is, picking up the remote and leaning forward.
2
OFCOM BBC on-demand report.
3
Long Tail can be described as the myriad of niche programs or media content whose
collective market share can rival the main stream.
4. 4
Sales of connected TVs are expected to grow at
a CAGR of 38 percent over the next five years,
with total connected TV device global revenues
projected at more than $95 billion USD by 2015.*
Content delivery evolution
Digital living
Increasingly, Internet-enabled consumer devices are vying to
become the center of the “digital living room.” Aggregation devices
are available that allow serving content throughout, and not
limited to the household. This content can be anything—ranging
from music, online videos, time-shifted movies, or television, to
traditional linear TV broadcast. Increasingly, television is not just
relegated to being that box in the corner of the room, but as an eye
to the world through the Internet.
Pay transactions*
2011 563 billion
2016 5.9 billion
OTT
2011 5.2 billion
2016 12.9 billion
VOD
We now have product manufacturers such as Sony, LG, and Samsung
that have released connected “SMART” devices that bypass the
broadcaster “middle-man” and provide content directly to the
consumer. This poses a number of problems for the traditional
content providers, the obvious one being a drastic loss of advertising
revenue. Conversely, these smart devices at the moment don’t
supply any lean-back experiences unless one switches back to the
traditional aerial or dish system. Applications such as Netflix, Hulu,
and Spotify are becoming commonplace giving the consumer access
to a lean-forward TV experience. These applications are replacing
the TV “middle man”—the traditional content aggregators, who
have not been able to embrace the new world or are unable to due
to their lack of corporate and technology agility. It is reported that
there will be a consumer spend of approximately $95 billion USD on
SMART TVs by 2015.*
Industry revenue forecasts (in USD)*
2006 $1 billion
2010 $6 billion
2016 $17 billion
IPTV
2016 $173 billion
Pay TV
2016 $7 billion
Cable TV
A study by IMS Research4
states that over the top (OTT) video services
could generate $16.4 billion USD in revenue by 2016—which does
not include Video on Demand (VOD) services from pay-TV providers,
which can generate an additional $14.7 billion USD. This combined
on-demand revenue represents a significant shift in the world that is
consuming the personal entertainment content.
IMS Research forecasts that the number of pay-OTT transactions will
increase tenfold, reaching 5.9 billion from the current 563 million
it estimated for 2011. They predict that 12.9 billion will pay-VOD
transactions through Set Top Boxes (STB) by 2016, up from 5.2 billion
this year (2011).
Additionally, Gartner has forecast mobile data revenue increase
of 23 percent in 2011 to $314.7 billion USD.5
By 2015, this figure has
been forecast to be $552 billion USD. A compound annual growth
rate (CAGR) of 15.9 percent for mobile data revenue is also reported
for the same period. However, is the rate of growth of data revenue
fast enough and will it tail off when the market is saturated with
smart phones? Clearly, there is a requirement to improve on this
predictable eventuality. There needs to be a way to increase the
average revenue per user by looking at new business models,
revenue sources, and efficiencies/optimizations.
4
Source: “Over-the-top video—service delivery & business models—2011 edition,” IMS
Research Study, 2011
5
Source: “Forecast analysis, Mobile services update,” Gartner Research, Q2 2011
* Source: Strategy analytics, August 9, 2011
†
Source: “Global entertainment and media outlook: 2011–2015,”
PricewaterhouseCoopers Segment Focus, 2011 www.pwc.com/gx/en/global-
entertainment-media-outlook/data-insights.jhtml
Figure 1. Multitudinous content devices Figure 2. TV subscriptions growth†
TV subscriptions market components—growth till 2015
% CA GR 2011–2015
–48%
Mobile TV
Video-on-demand
Subscriptions
Pay-per-view
0%
–0.2%
7.6%
25.1%
51.6%
24 % 48%–24%
13.6%
Over-the-top
5. 5
Evolution of the media value chain
The concept of a value chain, defined as the coordinated series of
activities leading to the creation and delivery of any product or
service, is deeply embedded in the collective wisdom of today’s
business leaders. This concept has shaped a generation of business
models and enormous efficiencies have been gained by organizing
and managing value chains. However, the next round of efficiencies
will come from new processes companies choose to institute. In
other words, a greater emphasis will be put on how firms organize
and manage the production, delivery, and use of the information on
which value chains are built. Business processes no longer belong to
a single business.
The “old school” broadcast value chain is a simple one: One that
is very linear and is based on publishers’ ability to generate and
develop content in the hope of attracting an audience. Content has
always been the raw material that’s ultimately “processed” to create
value for media planners and buyers.
Processing content typically involves segmenting the audience
and providing the ability to target that audience through different
channels. Historically, this segmentation was primarily limited to
demographics such as gender, age, and income. This is now evolving.
The traditional value chain is being challenged by social interaction
of content that has been consumed and then re-versioned at
the consumer level. This reinforces the need of an information
architecture that is robust and supports these socially driven
initiatives. Inherently, this structure would necessarily be circular.
The impact on the traditional value chain is substantial as shown in
figure 5.
So how would this affect the traditional value chain? One result
would be a new circular re-entrant value chain where the “referred”
and “re-versioned” content is fed back as a new source into the
system, then further processed and distributed with all the social
elements incorporated. One only has to see YouTube to realize how
this is being managed by the consumer.
However, at present the system has no ability to complete the
circle. Monetization of this content is not fully and clearly defined.
Analysis of content that is being popularly viewed allows the site
owners to increase advertising on those pages. In many cases, the
sites that “help” promote re-versioned content by the consumer are
benefitting from the added advertising revenue and not necessarily
the original content creator or distributer. One can imagine that a
whole revenue stream that is on the increase is being missed.
Figure 3. Traditional digital media value chain
Figure 5. New circular value chain
Figure 4. Information architecture
Figure 6. New model traditional broadcast value chain
Content
provider
Aggregator
content
trader
Content
packager
Content
distributor
Platform
provider
Device
Consum
er
Advertisers or their
agents
Mediavaluechain
(creation)
Accessvaluechain
(delivery)
Converged digital media value chain
Social
network
Publish
Tagged
content
Referring
Mash ups
Content
distributor
Delivery
provider
Content
provider
Aggregatorcontenttrader
Content
packager
Advertisers
Device
Consumer
Content
distributor
Delivery
provider
Content
provider
Aggregator
contenttrader
Content
packager
Advertisers
Content
provider
Aggregator
contenttrader
Content
packager
Traditionalbroadca
ster
Consumer
Devi
ce
6. 6
Figure 7 shows where the traditional broadcaster would inhabit the
new re-entrant value chain. Most of the value chain is not under the
control of the broadcaster, which would leave them in a vulnerable
position. They have no control over the distribution, the delivery
provider, let alone the device, and the consumer. Having said this,
a number of broadcasters have some inroads in connecting with
consumers, but the full benefits have not been realized yet.
The new Communication Service Provider (CSP) Value Chain (figure 8)
shows where a future CSP could inhabit the new-world value chain.
Encompassing the majority of the chain, a new CSP has control over
every aspect with the exception of the content creator; although the
latter is an area that CSPs could quite conceivably be involved in also.
Which technologies can enable this?
At first glance, the answer appears to be straight forward: Long Term
Evolution (LTE) is a big enabler with its architecture that is superior
to 3G; it can handle more throughput that is required in the world
of video content in its various forms than traditional 3G and 2G
architectures can provide.
Video services are attempted on these technologies, focused on video
telephony and multimedia messaging. Although technically feasible
to deliver video and multimedia content, the three most significant
reasons for their commercial failure are the high cost of data, low-bit
rate performance, and limited mobile device functionality.
Figure 8. Industry model (IABM)6
Figure 7. New model CSP value chain
Post
production
System
automationand
control
Content and
communications
infrastructure
Supplier channel management: Direct, distributor, reseller/dealer, system integrator, outsourcing
Supplier channel management: Direct, distributor, reseller/dealer, system integrator, outsourcing
Supplier resource management: Supply, support, configuration, integration, training, consultancy, professional services
Management
thread
Process
thread
Infrastructure
thread
Supplier
thread
Play out,
distribution, and
delivery
Creation,
production, and
aggregation
Studio and live production
Electronic News Gathering (ENG) and
Electronic Field Production (EFP)
Film
Graphics and post production
Audio production
Broadcast: Terrestrial, cable, satellite
IPTV and Mobile TV
On Demand/Online
Packaged media
Out-of-home content
Industry model: Entertainment, broadcast sector (IABM)
Mediaenterprise:Broadcasters,contentcreators,aggregators,andnetworkoperators
Process management: Automation, workflow, asset and rights management, subscriber management, scheduling, costing, marketing
Resource management: Financial, creative, technical, logistical, and operational
Acquisition
and production Audio Storage
Playoutand
delivery
platforms
Test,quality
control,and
monitoring
Services
Traditional broadcast infrastructure
Converged broadcast infrastructure
Traditional IT infrastructure
Content
distributor
Delivery
provider
Device
Content
provider
Aggregator
contenttrader
Content
packager
Advertisers
Content
distributor
Delivery
provider
Device
Aggregator
contenttraderer
Content
packager
New TELCO
Consumer
6
IABM—International Association of Broadcasting Manufacturers
7. 7
LTE technology allows for significantly higher capacity at a lower
cost per bit, leading to improved commercial viability of video and
multimedia services. In addition, it is also well suited to support user
requirements in the new circular value chain that would demand a
more symmetrical down/uplink bit capacity.
What isn’t as obvious, but is just as important, to a CSP is the Content
Delivery Network (CDN) and the associated management systems. In
tandem, network optimization systems are required to ensure that
the quality of service is at a level that is more than acceptable—the
historical expectation of legacy viewers who have come from a
linear TV broadcast world.
To share a concrete example, with a world-class CDN such as the one
developed between Telefonica and HP,7
which has algorithmic and
distributable caching superiority over the traditional CDNs, it is fully
integrated within LTE architecture.
Let us not forget the importance of telematics8
and its potential
in the new-media world. At present, telematics is the province of
M2M and B2B, however, the leap to the province of consumer/social
television world is not that great. Imagine the type of programming
that content creators in alliance with their new CSP partners would
have? Health or self-development reality programs that involve
the consumer in providing their “HealthSTATS”9
data content would
provide new avenues for content creators and advertisers.
The rapid evolution of telecommunication standards and technology
faces key challenges, one of which is in response to subscriber
demand for new services, faster throughput, and greater capacity.
This new world includes new repositories storing more subscriber
data, collected from more network elements, devices, and
applications putting service providers in a unique position. They
have a significant amount of information about their subscribers.
They know who their subscribers are, where they live, how they use
their devices, when they last used them, whether they travel, how
much they spend each month, what’s on, and more. All this data
is in their networks, but the databases that store it are typically
managed by different parts of the organization—making interaction
difficult both technically and politically.
A recommendation would be an approach to achieve unified
subscriber profiles in multi-generation, multivendor networks that
combine three strategies: consolidation, federation, and replication.
• Consolidation: Elimination of diverse repositories in favor of a
central repository
• Federation: Dynamic use of data where it already resides
• Replication: Creation of copies of data in diverse repositories and
moving them to a central database
Each of these have advantages and disadvantages, they can be used
separately or in conjunction with one or both, depending on specific
needs. By leveraging all three methodologies, the approach would
make it possible to extend the unified view of subscriber profiles
beyond the mobility management space to include the analytics of LTE
and service data, revenue management, and software as a service.10
Taking a holistic view, the above does not only involve an
infrastructural architecture, but also a systems architecture that
would include billing, network optimization, content management,
monitoring, telematics, and device management among some of the
systems. Clearly, CSPs will need to partner with companies whose
expertise and capabilities are well within these areas with proven
holistic architectures and systems in place internationally.
Complications and challenges
Disparate technologies
Different technologies are causing headaches for the traditional
content provider and a challenge for the newcomers, the CSPs.
The traditional broadcaster does not know enough about the
telecommunications business to delve into this area. Conversely, the
CSPs know little about content aggregation, content management,
commercial advertising, and more, thus making the roadmap to a
solution a perplexing conundrum.
Content—Identification and re-versioning
A content provider can hold multiple versions of the same content.
These may be for delivery to different devices at differing times.
Consequently, this content needs to be re-versioned for each
delivery mechanism. For this to happen, the content needs to be
identifiable and easily locatable. Also, content rights management
needs to be addressed. It is the description, identification, trading,
protection, monitoring, and tracking (content delivery and post
production) of all forms of rights usages over both tangible
and intangible assets, including management of rights holders’
relationships. This area is one of the greatest challenges of the
new-media age.
7
Source: “The Edge of bandwidth growth and why every Telco should have a CDN
strategy” (HP white paper, 4AA3-3678ENW), June 2011 http://h20195.www2.hp.com/
V2/GetPDF.aspx/4AA3-3678ENW.pdf
8
Telematics is the blending of computers and wireless telecommunications technologies,
ostensibly with the goal of efficiently conveying information over networks/Internet, for
example, medical and health informatics
9
Clinical trial of a mobile health monitoring solution by HP with Singtel
10
Source: “Take control by personalizing your customer’s unlimited choice with SDM for
LTE” (HP white paper, 4AA0-2580ENW), May 2011 http://h20195.www2.hp.com/V2/
GetPDF.aspx/4AA0-2580ENW.pdf
8. 8
Market segment identification
The purpose of market segmentation is to leverage scarce
resources; in other words, to ensure that the elements of the
marketing mix, price, distribution, and products and promotion, are
designed to meet particular needs of different client groups. This
process allows organizations to focus on specific clients’ needs, in
the most efficient and effective way. As T.P. Beane and D.M. Ennis
authors of “Market Segmentation: A Review, European Journal
of Marketing” eloquently commented, “a company with limited
resources needs to pick only the best opportunities to pursue.”
Traditional demographics of the content consumer are evolving.
Demographics may not work on its own anymore, it will require other
information to accurately identify and segment the audience.
Psychographic segmentation
Psychographic11
approaches rely on the analysis of consumers’
activities, interests, and opinions, in order to understand consumers’
individual lifestyles and patterns of behavior. Psychographic
segmentation includes an understanding of the values that
are important to different types of clients. In the new-media
landscape psychographics may rule the business rather than the old
methodology for demographics. So there is a need for new ways of
segmenting media audiences in a way that is immediate.
Advertising
In future, it may become increasingly difficult to monetize using
current methods of advertising. However, addressable and
personalized advertising are already in place with online players,
such as Google. This new form of advertising is what is expected of
the new‑media world. But to achieve this, mechanisms which are
purpose built, need to be in place to ensure that advertisers meet
the personal dynamics of the viewer in an efficient manner.
Globally, total broadcast television advertising will rise to
$221.9 billion USD in 2015 at a CAGR of 5.9 percent. Online
television advertising will increase at 22.6 percent CAGR and
mobile television advertising will rise at 33 percent CAGR, both
from much smaller bases.†
Latin America will be the fastest growing TV Advertising market over
the next five years, with a CAGR of 9.6 percent through 2015. North
America, still the largest market in revenue terms by 2015, will by
contrast be the slowest growing region with a CAGR of 4.9 percent.
Asia Pacific, the second largest region, is also the second fastest
growing at 8.3 percent CAGR, rising to 11.8 percent CAGR when the
slow-growing Japanese market is excluded from this figure. EMEA
will expand at 6.3 percent CAGR to 2015.†
11
Demographics allow marketers to describe who buys, but psychographics enables
them to understand why people buy.
†
Source: “Global entertainment and media outlook: 2011–2015,”
PricewaterhouseCoopers Segment Focus, 2011 www.pwc.com/gx/en/ global-
entertainment-media-outlook/data-insights.jhtml
9. 9
Over the next five years, double-digit CAGRs will be witnessed in
Russia, Turkey, China, India, Indonesia, Malaysia, Pakistan, The
Philippines, Thailand, Argentina, Brazil, and Venezuela.
We project that global mobile TV advertising will grow to
$264 million by 2015, a 57.8 percent compound annual increase
from only $27 million in 2010, driven by mobile TV rollouts, mobile
TV app launches, and growing penetration of smart devices.†
CSP solution
Convergence… again!
The challenges facing the industry in the targeting their clients, who
consume content on disparate technologies at a time and place of
their choosing, is not an easy one. However, the industry can at least
alleviate most of the issues it is facing now and in the coming years.
Asset management, once limited to managing archives, has evolved
significantly to the point where it now plays an integral role in
the broadcast-delivery chain, a process that involves acquisition,
production, and distribution of content. The factors behind this
evolution are two-fold plus one.
Firstly, advances in technology are reducing the costs and improving
the capabilities and performance associated with how assets can be
stored, accessed, and processed. Taking the latter point regarding
processing, this is indeed a vexed area of encoding, decoding, and
transcoding. The requirements of disparate devices, linear and
non-linear are quite different and require careful handling if the
content is to be playable on the device they are intended for.
Secondly, business needs are forcing the administrations to find
new ways to unlock the hidden value of the company’s assets
through new and alternative distribution. To do so, an organization
should consider implementing a more systemic approach of
managing assets throughout the broadcast-delivery chain. A simple
consideration is to design an interoperability layer, which will
become the driver of this migration.
What’s the “plus one”? This is the vexed area of convergence. From
the industry model (Infrastructure Thread figure 7) one can see that
there have been traditionally two sets of infrastructure and two sets
of associated management processes (service, project, program,
and implementation management). Traditionally, the first broadcast
technology infrastructure, and latterly with the advent of IT and IP
technologies, the IT infrastructure. For years the area of delineation
between the two has been fiercely fought over. Not too different to
what has happened in the traditional telecommunications industry.
Clearly, what is needed here is transformation. Some companies such
as Television New Zealand (state broadcaster for Aotearoa) have
successfully implemented this transformation with the help of HP.
The standard broadcast financial model based on linear advertising
is under threat, in fact one could say that it has been under threat
and it is now getting serious! New models need to be “invented” if
companies are to survive.
Although this is beyond the remit of this paper, the new ways of
working and converged infrastructures that are extensible and
flexible can identify and target the “audience of one.” This new
individual audience needs to be categorized as never before. New
players in the marketplace need to identify market segments to
allow direct and addressable advertising.
With the traditional demographics changing, for example, millennial,
addressability of this market is essential. The fickle nature of the
new audience means that identification of the types of content is
required on an individual basis due to their “lean forward” nature of
content consumption. This is where psychographics comes into its
own and used in conjunction with demographic segmentation, which
gives a more accurate picture of that audience. This identification
requires bi-directional access to the consumer, one that can only be
provided by a CSP that has a billing relationship with the consumer.
†
Source: “Global entertainment and media outlook: 2011–2015,”
PricewaterhouseCoopers Segment Focus, 2011 www.pwc.com/gx/en/ global-
entertainment-media-outlook/data-insights.jhtml
10. 10
What are the possible holistic solutions to the described scenario
described previously? A CSP could deliver content aggregation,
content packaging, content distribution, delivery provider, and,
the back channel in the new world, circular value chain. The latter
being so important for the targeting of individualized advertising, it
requires an analysis of the viewer data feedback to the CSP to enable
effective personalized advertising.
However, there are skill sets that are not traditionally within the
CSP space. So consider a combination of the following: An agile and
flexible independent organization with all the qualities of a CSP
and broadcaster combined, but without the overhead—perhaps a
joint venture? This venture certainly would allow it to transcend the
inherent issues with either player.
The new company would be able to address the market requiring
an investment in back-end management systems not too divergent
from operations support system (OSS) and business support
systems (BSS), but incorporating essential media systems such as
content management, asset management, play out automation
systems, content scheduling, content delivery system, content
Storage, and archive systems. The advantage to the client from the
above is a maximization of ROI on media assets. The joint-venture
would not have divergent infrastructures, but one singly managed
system, which would enable high efficiencies in not only the
hardware but also operational and infrastructure resources enabling
flexibility in operation and future scalability. In a competitive
environment, these are obviously fundamental requirements.
The evolution of technology is forging a revolution in a
diversification of multimedia services that can be offered over LTE
networks, which are personalized, predictive, and mobility aware.
Media devices and the consumer are now defining and effectively
driving requirements that industry need to address. The world has
changed; we are not addressing one audience anymore, but the
audiences of one.
Why HP?
There are not many companies in the world that have the inherent
knowledge and ability to bring together the disparate issues to
resolve this puzzle. HP CME solutions are enabled to cover all facets
of the converged world of content acquisition, storage, management
and distribution, and web-based operating systems and application
development. HP Solutions Consulting Services (HP SCS) is one such
solution that can provide the necessary strategy, design to help you
achieve quantifiable business benefits.
The HP SCS comprises a rich portfolio of capabilities, comprehensive
intellectual capital, and a pool of talented and trusted business
consultants. HP SCS delivers successfully planned and executed
transformations underpinned by fact based and financial strategies,
operational excellence, and proper governance.
To support media and communications business strategy,
optimum sourcing is used as it determines how to best use market
conditions, supplier capability, and technology advances to source
the right components. Our unique understanding of the media,
communications, ICT landscape, architecture, and processes
allows the implementation of major initiatives and business
transformations. We enable you to make informed decisions with
confidence. In addition, HP can help with developing strategic
alliances and associated new business models for CSPs with media
players and content producers. HP is a one-stop solution provider.
11. 11
About HP SCS
HP SCS is a business consulting practice delivering a comprehensive
suite of product-agnostic consulting services designed to transform
CSPs’ businesses to a client-centric business through:
• Worldwide, CME industry thought leader business consultants—
leveraging global reach with local capabilities—with a proven
track record of delivering strategic and financial advisory, and
business transformation to large CSPs, backed by a unique
combination of network and IT experience coupled with the
comprehensive solution portfolio of HP.
• A portfolio of consulting services that can be combined and
customized to meet key business objectives.
• A proven methodology to guide and orchestrate a completely
customized transformation strategy on any scale.
• A model-based approach that attacks problems in a systematic
way, enhancing interdependencies between operations,
organization, and technology.
The HP SCS portfolio focuses on three primary service areas where
it offers proven, standards-based solutions: strategic and financial
advisory, business transformation, and operational excellence.
HP SCS accompanies CSPs at each step of the transformation. We:
• Assess the transformation cases under all relevant business
angles (technology, process, and financial) and benchmark
against industry best practices to define a complete business
transformation strategy.
• Provide an operations blueprint design—which includes all the
relations between people, process, and technology and how these
elements must evolve to enable client-centric business outcomes.
• Give a transformation blueprint and governance to help
CSPs reach their target, helping minimize risk, and enabling
business continuity.
HP benchmarking capability is a key component of HP Strategic and
Financial Advisory. It is a set of capabilities that assist CME clients
understand where they are today, and where they need to go in the
future in order to meet their corporate objectives and execute the
business level strategies. In addition to benchmarking, strategic and
financial advisory capabilities include cost and revenue analysis,
business case evaluation, and functional strategy.
HP Industry Advisory Program
The HP Industry Advisory Program is a unique program of
HP Solution Consulting Services (SCS) to deliver innovative thought
leadership addressing key industry business issues for our clients.
It leverages on the global knowledge, expertise, and experience
of HP SCS Business Consultants and is coupled with proven
methodologies, industry frameworks, and intellectual capital as
modeled in, which is an HP SCS model‑based tool.
The HP Industry Advisory Program provides clients with access
to industry thought leadership through a collaborative, social
media-based environment. Clients in the communication, media,
and entertainment industries can benefit from leveraging the global
experience that HP offers on market-leading and innovative topics
with the speed provided by innovative, collaborative, and social
media-based development environments.
For more information
Gain more insight into client experience, transformation best
practices, and HP capabilities, visit hp.com/go/scs.