Unleashing the value of a platform

January 22, 2020

RESEARCH REPORT

In brief

In 2019, for the first time, consumers around the world spent more time with media across the internet than on any other traditional format.
With the range of screens available and a deluge of content offerings, media companies are in fierce competition for consumers’ limited attention.
To compete and win in this massively disrupted landscape, traditional media businesses should consider the multi-sided platform approach.
This disruptive play could help media businesses bolster content offerings, optimize customer value and improve advertisers’ return-on-investment.

2019: A global media industry watershed

For the first time, consumers around the world spent more time with media across the internet than on any other traditional format.

170

Average daily time spent (in minutes) on media across the internet among consumers worldwide, 2019

167

Average daily time spent (in minutes) on TV among consumers worldwide, 2019

And with the ever-increasing range of devices and screens available to consumers—as well as a deluge of innovative content offerings from new players—media companies are in fierce competition for consumers’ limited attention.

To make sure they can compete and win in this massively disrupted and complex new landscape, traditional media businesses need to take decisive action on three critical fronts:

Establishing direct customer channels

Develop a direct relationship with end customers, as traditional wholesalers are now positioned to become retailers through platform enablement.

Becoming an intelligent enterprise

Shift value to creators based on customer engagement and become a more intelligent enterprise to extend customer lifetime value.

Expanding monetization

Expand monetization beyond subscription, taking into account the long-tail opportunity of the digital economy as a lever for unleashing trapped value.

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The new market reality demands a new approach

But what should that look like? In our view, media companies should consider a multi-sided platform approach to address the market challenges they face. Done right, this could help bolster content offerings, optimize customer value and improve advertisers’ return-on-investment.

Media companies should consider a multi-sided platform approach to address the market challenges they face. Done right, this could help bolster content offerings, optimize customer value, and improve advertisers’ return-on-investment.

But it is a disruptive play—the multi-sided platform approach requires traditional media companies to transform their own value chain—from supply to demand.