Overview
The Digital Video Business
An accelerating wave of disruption is transforming both the traditional and digital video industry. Conventional business models are under pressure, squeezed by shifting customer expectations and competition from digital rivals. Traditional Content Providers and Aggregators will need to adopt new business models, to capture growth, protect market share and boost profits.
Companies need to take three fundamental decisions:
1
What type of digital video business do you want to be?
2
How are you going to build the capabilities needed to be successful?
3
How can you collaborate in a way that helps maximize leverage and profitability in your business transactions?
In this issue of Bringing TV to Life, Accenture aims to help video businesses answer these questions. It focuses on the roles of Digital Content Aggregators (DCAs) and Digital Content Providers (DCPs), and the relationship between them, outlining some of the challenges that each face. Accenture also helps to identify the capabilities and strategic options that both Aggregators and Providers need to consider, to stay ahead of disruption in the digital video market.
We are witnessing a battle for the digital consumer of seismic proportions and this requires facing the digital future without fear of cannibalizing legacy business models. Becoming a Digital Video business at scale today requires a new approach to investment but is the price to pay for a successful future.
NEW BUSINESS MODELS FOR THE DIGITAL VIDEO INDUSTRY
Accenture defines and highlights two capability models that offer traditional Providers and Aggregators an opportunity to reinvent themselves and maintain their relevance in the industry’s rapidly changing value chain:
Digital Content Providers
(DCPs)
are a new breed of business looking to serve content across a wide array of different digital channels, including OTT and IP distribution. Sometimes DCPs will offer content directly to consumers; in other cases, they will provide it through collaboration with Digital Content Aggregators.
Digital Content
Aggregators
(DCAs)
are digital video aggregation platforms designed to package multiple DCPs to consumers. In contrast to traditional Aggregators, DCAs focus more on providing the data and platforms, such as media distribution and targeting services, that DCPs need to engage with audiences directly.
Pressure is growing on broadcasters and other traditional Providers in the digital video industry. Traditional business models are being squeezed by the dual threat of declining audiences (as more viewers become cord cutters) and the migration of advertising spend to online. At a time when shareholders are expecting growth, this is creating challenges, forcing Providers to adopt innovative strategies and explore new areas to forge growth.
DIGITAL CONTENT PROVIDERS
Five key strategies to become a Digital Content Provider (DCP)
In a continually evolving digital video landscape, traditional Aggregators need to act fast to fend off the ever-growing threat of content owners and Digital Content Providers (DCPs) going direct to the consumer. Aggregators also need to quickly establish their position as a Digital Content Aggregator (DCA) in the industry’s shifting value chain, identifying how best to leverage their assets to maximize market share.
Digital Content Aggregators
Seven key strategies to become a Digital Content Aggregator (DCA)
About The Series
Lead Author
Sef Tuma
Chief Strategy Officer
Accenture Digital Video
Accenture’s “Bringing TV to Life” series aims to build an understanding of the technology and business trends and market drivers that are radically reshaping the video industry. Our perspective reflects our experience with players across the ecosystem and makes use of Accenture’s primary industry surveys. Our series aims to help all the players in this rapidly evolving space to accelerate their journey as high performance businesses.
To explore last year’s issue, please visit:
Bringing TV to Life: Issue V
