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All the right connections

More screens, faster fiber and quality-hungry consumers (with dollars to spend) add up to a new world of opportunity for broadcasters.

Overview

Beyond question, digital TV has come of age. A virtuous circle of opportunity is spinning faster all the time. Driven by consumer demand for multiple devices, we are approaching a point where there will soon be more screens than people on planet earth.

Consumers are ready to pay more to get the level of service they require. And the high-speed broadband that will meet their expectations is now being rolled out. Taken together, this adds up to a new world of opportunity for all participants in the media and entertainment world—from telcos and cable providers to online video providers and incumbent broadcasters.

New customer propositions are appearing all the time and organizations are still jostling for position. The market is growing fast—and, for the moment at least, the field is wide open.

Broadcasters have an outstanding opportunity to seize the initiative. To do so, they must evolve from a traditional focus on content to become CONTENT + TECHNOLOGY companies, with IT skills embedded throughout the enterprise.

Digital Consumer Survey 2014 Infographic

Digital Consumer Survey 2014

An increase in addressable screens is reshaping the entertainment landscape.

 

Download PDF View the infographic

Background

A congruence of factors is creating an unprecedented opportunity for broadcasters to seize the digital TV initiative in the battle for consumer attention and engagement. Explosive growth in the number and variety of connected screens, faster high-speed broadband connections and audiences that are willing to pay more for high-quality access to content add up to a massive prize.

The key to capturing it? Understand what consumers want and develop the capabilities needed to deliver to their demands.

Analysis
Now in its fourth year, Accenture’s latest multination consumer survey makes it clear that there is significant untapped demand for viewing over the Internet and highlights four key themes that are driving this demand:

  • Explosive growth in the number and variety of connected screens: Increasing numbers of consumers now own a combination of devices. Twenty-one percent of our survey respondents currently own a combination of smartphones, laptops/desktops, tablets and HDTVs, with 25 percent of respondents indicating that they intend to purchase a connected TV in the next 12 months. And, another 11 percent intend to replace an existing connected television.

  • Full-length movies and TV shows online is no longer niche: Consumers are using their connected screens to obtain a sizeable portion of their entertainment online.

  • Consumers willing to pay more for better high-speed broadband connectivity: We already knew that today’s digital consumers demand a far more personalized and customizable service for the content they watch across these multiple screens. The fact that they’re willing to pay more to get it glitch-free is a hugely significant development.

  • Accelerated rollout of high-speed broadband: This hunger for quality is increasingly being addressed by major rollout of high-speed broadband and bundled quality-of-service offerings.

Recommendations

With so many new providers and new business models, competing for consumers’ content—at the right price—becomes more important than ever. To do so, we believe that broadcasters need new capabilities to drive success in the digital TV marketplace, including:

  • Agile operations: As they adapt to changing consumer needs, broadcasters need to rethink how they operate. The challenge of multiple file formats on multiple distribution networks, delivered to a whole universe of devices, will push broadcasters to reconsider the role of technology. To remain competitive, they need to become more tech-savvy.

  • Content performance management: Already broadcasters’ most expensive asset, trends suggest content will become even more expensive. This means that the way content use is planned, executed and controlled will make a big difference to value creation.

  • Analytics and technology capabilities: The proliferation of digital devices means that a wealth of new usage data is being created. Instead of having to rely on consumer research and “overnights” to track this information, broadcasters can have the insights they need in real time—provided they develop the capabilities required to harness, manage and mine consumer data.