We are living in a time of almost unprecedented disruption and intense competition among a growing array of players in the video industry. There’s a lot keeping video providers up at night, including:
Meeting these challenges and thriving in a digital world is the subject of the seventh edition of Accenture Digital Video’s popular series, “Bringing TV to Life,” entitled “Charting the Course to Success.”
Companies born in the digital era are rewriting the rules of competition in the video industry. The industry as a whole continues to grow materially, yet much of the growth is coming from these digital disrupters, who enjoy several advantages in the marketplace:
A challenging journey is ahead for traditional players: Content aggregators—organizations that operate a traditional aggregation platform such as a cable company —as well as content distributors, organizations that own or acquire content rights such as a programmer or broadcaster. Both types of companies need to become fully digital, both in how they operate and how they monetize.
These companies are starting to make short-term and long-term moves, both to control their cost base and to maximize their access to the market.
To attack the digital market in a manner that allows incumbents to grow from their traditional approach while capitalizing on their advantages in the new, digital era, they must navigate what’s commonly referred to as an “S-curve,” growing the core while enabling the new. They must eventually make a leap from the growth curve of a traditional business to a new growth curve of a digital business.
Incumbents, depending on whether they are distributors or aggregators, have several strengths to leverage:
Companies should use their strengths to lay foundations for the "new" to defend and extend value—to take action in a way that allows their strong core to enable their new direction.
It’s important to deal with both vision and reality—that is, where companies’ money is right now versus later, as well as their ability to disrupt themselves in the midst of organizational and technological legacy, and to deal with disruption while protecting their existing business.
Many of the things incumbents must do might seem counter-intuitive because the actions go against traditional thinking or motivations in their current business model. But it’s the only course to success as companies navigate through digital disruption.