Bringing TV to Life VIII:
Innovation. Applied now.
April 25, 2018
From the birth of the industry, television providers have always combined technology, insight and opportunity to stay ahead. But the recent, rapid growth of platform players offering IP-based video consumption has created a new urgency for innovation.
In this edition to Bringing TV to Life, we dig deeper into why innovation remains essential to your success and how you can embrace the latest ideas to keep it alive in your products, engineering, operating model, workforce, commercial models and ecosystems. Download the infographic.
Around the world, investors are seeing the chilling effects of platform-enabled consumption on the health of established video businesses:
Meanwhile, new platform players are expected to outspend US-based traditional networks by 2020 in programming investment.
This is eroding the strength of traditional content creators.
In response, investors expect established video businesses to articulate clear strategies. Investors want to see sustained innovation, with clear differentiation and energetic competitiveness.
Original content volume is growing at CAGR of 12% per year
#of Originals, 2011 v. 2016, # of shows
To date, established players have been navigating the trade-off of driving innovation to support new business models versus maintaining the benefits of incumbency they enjoy. The result has largely been limited digital product innovation, at the periphery of their businesses, including catch-up TV services for broadcasters and TV everywhere extensions for platform operators.
This incumbency mindset is unnecessarily constraining established video businesses and putting the future of the industry at risk.
Premium on Invested Capital Factor based on Enterprise Value / Invested Capital
In Bringing TV to Life VII, we introduced a way of thinking that lies behind transformation, the S-Curve. Broadcasters and operators use the S-Curve to meet the challenge of investing in innovation with confidence.
The S-Curve helps you manage three waves of innovation.
In this new edition, we explore how you can build innovation into your corporate DNA in a way that maximizes revenue, streamlines operating costs and reduces waste in capital spend. We'll introduce you to ideas for iterative innovations that can help transform and grow your core, driving steady change with modest but important impact.
We’re also exploring how you can incubate disruptive ideas by taking broader and braver innovation approaches that are still based on your core strengths but embrace digital transformation to help you build the new.
To make this very actionable, we’re introducing the innovation framework, which gives specific insights and recommends pragmatic approaches in five areas that are critical to the long-term growth of your business: Products, Engineering, Operating Model, Commercial Models and your place in the Ecosystem. Whether you're a content creator or broadcaster, an operator or CSP, or a platform company, there's specific detail here for you as we break out our insight and recommendations for each segment in the value chain.
The Innovation Framework
Stay tuned! We’ll be posting new articles to illustrate how innovation can drive value to your business across these five dimensions.