appetite for disruption: realigning digital video business models
TRANSCRIPT
Appetite for Disruption: realigning digital video business models(From the Bringing TV to Life Series)
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A wave of disruptive innovation is now engulfing the video industry. Trends that until recently have held sway are becoming unsustainable.
As the industry transforms itself, the stakes are high.
> $500 billionThe value of the global video market.
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Total Pay TV Revenue, 2015–2019c, $US billions. Source: PWC and SNL Kagan 2015
All change: an industry in flux
This growth has been propelled by advances in technology…and changes in consumer demands
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The advent of highly optimised software-driven solutions have made OTT
propositions more portable, scalable, and accessible
Technologies driving QoE is enabling businesses to
differentiate between quality and “freemium” content.
Cloud technology and big data provide an affordable way
to launch and optimise product
Consumers expect constant connectivity and immediate video
provisioning across all their gadgets
Portability of devices is changing content consumption trends and
driving requirements for one-to-one digital relationships
Proliferating OTT services with unique content propositions
challenge the value of existing carriage agreement deals as they
gain popularity.
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In the event you need to collaborate, how can you do so in a way that helps maximize leverage and profitability in your business transactions?
How are you going to build the capabilities needed to be successful?
What type of digital video business do you want to be?
Traditional Providers and Aggregators need to take three fundamental decisions:
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Two new capability models to consider:
Digital Content Providers
Digital Content Aggregators
While a simplified view of the relationship between traditional Providers and Aggregators may look like this…
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An evolving value chain
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HBO NOWThe rush to D2C OTT
SKY and NOW TVFrom Aggregator to D2C DCP
SLING TELEVISIONFrom Aggregator to DCA
DirecTVAggregator consolidation
Traditional Providers and Aggregators are already responding
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AMAZON PRIMEFrom DCP to DCA
NETFLIXFrom DCP to global DCP
YOUTUBE REDFrom DCA to DCP
Digital natives are also assessing how best to position themselves
Tomorrow’s transformed digital video industry value chain—a virtuous circle
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Digital Content Providers (DCPs)
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5. Support multiple business models.
4. Get noticed.3. Stay close to the customer.
2. Move fast.1. Work together with platforms and devices.
Digital Content Providers
Five key strategies to become a Digital Content Provider
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ADVERTISINGMarketing & commercial offerMultimedia ad sales & billing
Traditional ad OperationsDigital ad operations
Direct marketing (content) to drive scale
Digital ad optimization
CUSTOMERPROPOSITIONS
Branding & digital marketingDigital salesDigital customer service
Customer experience designCustomer / audience analyticsSocial interaction
Integrated multi-channel engagement, schedulingMulti-business-model platformsMulti-distribution product development
Segmentation-informed curation & commissioningInteractive and innovative content experience
CONTENTPRODUCTION
Resource planningNews production
Program & promo productionSport & live event production
Segmentation-informed curation & commissioning
Interactive and innovative content experience
CONTENT/SERVICEDELIVERY
Broadcast play-out & controlService delivery
Real-time content managementContent protection
Multi-business-model platforms Multi-channel content repurposing / supply chain
CONTENTPROCESSING
Multi-business-model platforms Multi-channel content repurposing / supply chain
Content acquisition & QCContent management
Archive managementContent processing
RIGHTS MANAGEMENT
Multi-business-model platforms Multi-channel content repurposing / supply chain
Content financial & budgetMarket screening & sourcing
Distribution & licensingContent performance & analytics
PROGRAMMING & PLANNING
Multi-platform planningMulti-platform format creation
Linear scheduling & programmingVOD catalogue planning & management
Integrated multi-channel engagement & schedulingMulti-distribution product development
Segmentation-informed curation & commissioningDigital content optimization
Traditional Content Provider Capabilities
New DCP Capabilities Required
Winning Capabilities of Digital Content Providers
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Digital Content Aggregators(DCAs)
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Digital Content Aggregators
Seven key strategies to become a Digital Content Aggregator
7. Build trust.
6. Leverage the living room advantage.
5. Aggregate insights.
4. Accelerate new digital capabilities to support the ecosystem.
3. Differentiate through quality of service and experience.
2. Scale up to succeed.1. Allow content to remain king.
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SERVICE MANAGEMENT OPERATIONS
Application & infrastructure opsNetwork engineering & operations
Service monitoringField force
Multi-channel quality of service / experienceContent and subscriber optimization services
Cross-DCP care servicesDevOps-driven platform development models
AD SALES/AD ENABLEMENT
Marketing & commercial offerMultimedia ad sales & Billing
Traditional ad operationsDigital ad operations
Data-driven package and ad targetingData-driven direct marketing enablement
Targeted and dynamic ad servicesCross-DCP targeting
SERVICE DELIVERY/NETWORK
Service deliveryContent protection
Distributor enablement Distribution products and servicesData-driven direct marketing enablement
Multi-channel quality of service / experienceContent and subscriber optimization services
OFFERINGMANAGEMENT
Content financial & budgetDistribution & licensing
Content performance & analytics Content and subscriber optimization servicesData-driven package and ad targeting
Content optimization enablementCross-DCP targeting
SALES &MARKETING
Customer serviceCustomer experience design
Customer / audience analyticsSocial interaction
Distribution products and servicesData-driven package and ad targetingDigital package optimization
Cross-DCP care servicesMulti-channel quality of service / experience
Traditional Aggregator Capabilities
New DCACapabilities Required
Winning Capabilities of Digital Content Aggregators
Become a “Digital Video Business” today—or pay the price tomorrow.Future winners will be determined by the choices they make today.
Read the full report here
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Copyright © 2016 Accenture. All rights reserved. This document is produced by consultants at Accenture as general guidance. It is not intended to provide specific advice on your circumstances. If you require advice or further details on any matters referred to, please contact your Accenture representative. This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Accenture and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks
About Accenture Digital VideoAccenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.
About this seriesAccenture’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 learn more, please visit www.accenture.com/pulseofmedia
ContactSef TumaChief Strategy OfficerAccenture Digital [email protected]@accenture.com