the emerging global media ecosystem - tata ... are now accustomed to watching tv shows, movies,...

THE EMERGING GLOBAL MEDIA ECOSYSTEM

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© 2015 Tata Communications Ltd. All rights reserved.

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WELCOME TO THE “ALWAYS ON” WORLDWe live in an increasingly connected world with smartphones, tablets, Wi-Fi, hotspots, cloud, 5G networks and the always-on internet environment transforming the way we live, work and interact with media and entertainment.

Media and entertainment (M&E) companies are moving quickly to adapt to this new reality. With today’s global consumer audience expecting instant access to news, music, games, videos, movies and more 24/7, immediate is the new normal.


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MEDIA IS GOING MOBILE — AND GLOBALPeople are now accustomed to watching TV shows, movies, sports, videos, reading books and playing interactive games on their favourite digital devices anytime, anywhere. And they want more.

Skyrocketing demand from iGens, Millennials and GenXers for mobile video, social, video games, digital books, and over-the-top (OTT) video is pushing consumer digital media usage up double digits virtually every year.

• iGens have an 18.3% share of digital media use worldwide, giving them the highest user share

• Millennials are the most avid and active users of both mobile and social media

• GenXers are averaging 7.4 hours of digital media consumption a week1

And it’s happening worldwide according to the PQ Media Global Consumer Media Usage & Exposure Forecast 2014–182.


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MEDIA IS GOING MOBILE — AND GLOBALPeople are now accustomed to watching TV shows, movies, sports, videos, reading books and playing interactive games on their favourite digital devices anytime, anywhere. And they want more.

Skyrocketing demand from iGens, Millennials and GenXers for mobile video, social, video games, digital books, and over-the-top (OTT) video is pushing consumer digital media usage up double digits virtually every year.

• iGens have an 18.3% share of digital media use worldwide, giving them the highest user share

• Millennials are the most avid and active users of both mobile and social media

• GenXers are averaging 7.4 hours of digital media consumption a week1

And it’s happening worldwide according to the PQ Media Global Consumer Media Usage & Exposure Forecast 2014–182.

“The media industry is undergoing rapid change along the entire value chain, propelled by continuously rising consumer demand, digital technology, ubiquitous connectivity and evolving devices … while technology has always been a driver of change in this sector increasing digitization has escalated the speed of its transformation.”

MCKINSEY AND COMPANY Global Media Report 2014


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We also looked at other surveys to see if they corroborated our findings. The recent RightScale 2015 State of the Cloud Report surveying 930 technical professionals across a wide range of organisations found that:

• Mobile media is today’s fastest-growing digital media platform2

• Over-the-top (OTT) video is emerging as the most-used digital media channel2

• The UK has the highest digital media usage, followed by South Korea, Australia, Canada and the USA2

• In a survey of 32 countries around the world, consumers in 26 of the countries polled spend more time online every day than with traditional forms of media3

• Mobile now accounts for 30% of the time spent with online media, exceeding 40% in fast-growth markets such as Saudi Arabia, Thailand and the UAE3

• The average consumer in India now spends 3 to 5 hours a day watching media with 35% of that time online4


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We also looked at other surveys to see if they corroborated our findings. The recent RightScale 2015 State of the Cloud Report surveying 930 technical professionals across a wide range of organisations found that:

• Mobile media is today’s fastest-growing digital media platform2

• Over-the-top (OTT) video is emerging as the most-used digital media channel2

• The UK has the highest digital media usage, followed by South Korea, Australia, Canada and the USA2

• In a survey of 32 countries around the world, consumers in 26 of the countries polled spend more time online every day than with traditional forms of media3

• Mobile now accounts for 30% of the time spent with online media, exceeding 40% in fast-growth markets such as Saudi Arabia, Thailand and the UAE3

• The average consumer in India now spends 3 to 5 hours a day watching media with 35% of that time online4

DIGITAL MEDIA IS BRINGING NEW LIFE TO TRADITIONAL TVIn spite of the huge move to mobile media by younger generations, the home TV audience is not going away. According to Nielsen’s 2015 Advance National TV Household Universe Estimate, there are now 116.3 million TV homes in the U.S., a 0.4% increase from 2013-2014, comprising a population of nearly 296 million persons age 2 and older.5


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PASSIVE VIEWING IS NOW PASSÉToday’s consumers don’t just want to watch M&E. They also want to be active participants. They’re media multitasking, integrating second screen devices into their M&E viewing experiences.

While watching a sporting event, consumers are surfing the web on a smartphone or tablet to check player stats, other scores and sending text messages to their friends. In a survey of 3,501 consumers across six countries — the U.K., France, Spain, Italy, Brazil and the U.S. — Accenture found that 77% said they regularly use their computers and laptops while watching TV — and 90% watch video over the Internet.7

With more than 80% of consumers mobile multitasking while watching TV, M&E providers have a tremendous opportunity to develop more integrated viewing experiences that blend two platforms and take advantage of the inherently interactive capabilities of the second screen.8

“Consumers can’t just watch TV anymore. The rise in multitasking while watching TV suggests that scheduled programming, also known as Linear TV, may be losing its appeal for sophisticated users, presenting both challenges and opportunities for broadcasters and content providers.” 6

FRANCESCO VENTURINI Broadcast lead for Accenture’s Media & Entertainment industry group


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PASSIVE VIEWING IS NOW PASSÉToday’s consumers don’t just want to watch M&E. They also want to be active participants. They’re media multitasking, integrating second screen devices into their M&E viewing experiences.

While watching a sporting event, consumers are surfing the web on a smartphone or tablet to check player stats, other scores and sending text messages to their friends. In a survey of 3,501 consumers across six countries — the U.K., France, Spain, Italy, Brazil and the U.S. — Accenture found that 77% said they regularly use their computers and laptops while watching TV — and 90% watch video over the Internet.7

With more than 80% of consumers mobile multitasking while watching TV, M&E providers have a tremendous opportunity to develop more integrated viewing experiences that blend two platforms and take advantage of the inherently interactive capabilities of the second screen.8

“Consumers can’t just watch TV anymore. The rise in multitasking while watching TV suggests that scheduled programming, also known as Linear TV, may be losing its appeal for sophisticated users, presenting both challenges and opportunities for broadcasters and content providers.” 6

FRANCESCO VENTURINI Broadcast lead for Accenture’s Media & Entertainment industry group

“TV in ten years is going to be one hundred per cent streamed. On demand. Internet Protocol. Based on computers and based on software.”

MARC ANDREESSEN Co-inventor of the Netscape browser, and now Co-founder and general partner of Silicon Valley venture capital firm Andreessen Horowitz


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MOVIES ARE JUST THE BEGINNINGAccording to internetwordstats, there were 3,079,339,857 people in the world with Internet access as of December 31, 2014.9.9 That’s getting close to most of the people on this planet. Of course, not all were watching videos and streaming Hollywood movies. Many are moving into new media concepts never before imagined.

Just one example: the global eSports market. It now totals more than 134 million participants worldwide that both play and watch competitive computer videogames.10 Another 190 million consumers are watching eSports competitions. That makes competitive gaming a spectator sport with a fan base comparable to American football and ice hockey — and it’s just the beginning.11

The eSports market now generates more than $194 million in revenue per year and is set to more than double in size by 2017 according to a “conservative scenario” from research firm Newzoo, which estimates revenues will reach $465 million within two years.11

In 2015, there are 56.8 million people playing fantasy sports in the USA and Canada, spending an average of $465 annually per person.12

FANTASY SPORTS TRADE ASSOCIATION


http://www.internetwordstats.com

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THE NEW M&E BUSINESS MODEL: THE GLOBAL ECOSYSTEMGiven these trends, M&E companies are being driven to develop new and innovative digital content and offer a larger and more diverse content universe across multiple platforms.

Market demand is making companies innovate. And it’s blurring the lines between all the players. Just one example — companies such as Netflix that started out simply distributing DVDs by mail is now producing its own exclusive film content.

This new world of M&E is forcing every player to rethink its business model and move in new directions. The fastest and most economical way to do that is to create new alliances and partnerships.

By doing so, each member in the ecosystem is able to extend its reach and increase its value. In effect, the ecosystem becomes stronger and more valuable than the sum of its parts.

One example of a global M&E ecosystem that’s an indispensable part of life today is the smartphone. Buy a smartphone and you’re buying into a unique digital, media and entertainment ecosystem. It includes apps, add-ons, music, movies, books and a host of other products and services that interact with each other and come from ecosystem members from all over the world. It’s the M&E business model for today and the future.

The digital ecosystem is “…the space formed by the convergence of the media, telecoms and IT industries… as well as the infrastructure that enables digital interactions.”

THE WORLD ECONOMIC FORUM


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PLANNING THE ROAD AHEADEvery player in the Media and Entertainment business needs to carefully plan its path forward as the M&E industry evolves into a global ecosystem. Following are several key thoughts to keep in mind as your enterprise moves forward:

• A successful M&E ecosystem leverages the strengths of each partner to deliver the unique content and experience that today’s consumers want. Evaluate potential partners carefully based

• While the global M&E ecosystem enables M&E companies to take advantage of new channels and technologies, you don’t have to abandon your traditional offerings.

• Coordination between your ecosystem partners is critical, requiring technology platforms that provide fast and efficient communication and collaboration. Example: a traditional video service might partner with an IP-based connectivity provider to create an innovative global media platform.

• With more consumers multitasking while consuming M&E programming, there’s an opportunity to create more integrated viewing experiences that blend two platforms and take advantage of the inherently interactive capabilities of the second screen.

• The global infrastructure needed to support M&E ecosystems is already in place, providing opportunities for all participants in the M&E universe. Even small content developers can now reach global audiences by finding the right partners — and large international media companies can now easily tap unique content small developers and economically distribute worldwide.

• The emerging global M&E ecosystem promises to provide all members, large, small and in-between access to more resources and audiences and new opportunities more economically than ever before.


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PLANNING THE ROAD AHEADEvery player in the Media and Entertainment business needs to carefully plan its path forward as the M&E industry evolves into a global ecosystem. Following are several key thoughts to keep in mind as your enterprise moves forward:

• A successful M&E ecosystem leverages the strengths of each partner to deliver the unique content and experience that today’s consumers want. Evaluate potential partners carefully based

• While the global M&E ecosystem enables M&E companies to take advantage of new channels and technologies, you don’t have to abandon your traditional offerings.

• Coordination between your ecosystem partners is critical, requiring technology platforms that provide fast and efficient communication and collaboration. Example: a traditional video service might partner with an IP-based connectivity provider to create an innovative global media platform.

• With more consumers multitasking while consuming M&E programming, there’s an opportunity to create more integrated viewing experiences that blend two platforms and take advantage of the inherently interactive capabilities of the second screen.

• The global infrastructure needed to support M&E ecosystems is already in place, providing opportunities for all participants in the M&E universe. Even small content developers can now reach global audiences by finding the right partners — and large international media companies can now easily tap unique content small developers and economically distribute worldwide.

• The emerging global M&E ecosystem promises to provide all members, large, small and in-between access to more resources and audiences and new opportunities more economically than ever before.

A business ecosystem finds its roots in the idea of value networks and can be seen as a group of companies, which simultaneously create value by combining their skills and assets.13

CREATING VALUE IN ECOSYSTEMS: CROSSING THE CHASM BETWEEN KNOWLEDGE AND BUSINESS ECOSYSTEMS Clarysse, Wright, Bruneel, Mahajan


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THE TATA COMMUNICATIONS™

MEDIA ECOSYSTEMWith the recent launch of our innovative, ground-breaking Media Ecosystem, you can now access an extensive portfolio of leading-edge media services, experiment with new formats and launch new services and channels at the touch of a button. Designed as a flexible, holistic media platform, our Media Ecosystem combines traditional video contribution services with global IP-based connectivity.

At your fingertips is our extensive portfolio of media services including asset and workflow management, cloud-based playout, automation and control, storage and OTT platforms. All these services are complemented by our comprehensive offering of network services, including our global IP network, Content Delivery Network (CDN) and Video Connect service. Many of our media clients also take advantage of our industry-first IZO™ Internet WAN offering that provides business-class SLAs across internet connections and professional video sharing opportunities.

As a Tata Communications customer, you can also take advantage of world-class connectivity solutions backed by our extensive global fibre network. Today, more than 24% of the world’s Internet routes travel over our network and we are also the only Tier-1 provider ranked in the top five by routes in five continents.

Let us be your competitive edge.For more information and answers to your questions, contact us today by emailing [email protected] or by visiting our website at www.tatacommunications.com.

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http://www.tatacommunications.com

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THE TATA COMMUNICATIONS™

MEDIA ECOSYSTEMWith the recent launch of our innovative, ground-breaking Media Ecosystem, you can now access an extensive portfolio of leading-edge media services, experiment with new formats and launch new services and channels at the touch of a button. Designed as a flexible, holistic media platform, our Media Ecosystem combines traditional video contribution services with global IP-based connectivity.

At your fingertips is our extensive portfolio of media services including asset and workflow management, cloud-based playout, automation and control, storage and OTT platforms. All these services are complemented by our comprehensive offering of network services, including our global IP network, Content Delivery Network (CDN) and Video Connect service. Many of our media clients also take advantage of our industry-first IZO™ Internet WAN offering that provides business-class SLAs across internet connections and professional video sharing opportunities.

As a Tata Communications customer, you can also take advantage of world-class connectivity solutions backed by our extensive global fibre network. Today, more than 24% of the world’s Internet routes travel over our network and we are also the only Tier-1 provider ranked in the top five by routes in five continents.

Let us be your competitive edge.For more information and answers to your questions, contact us today by emailing [email protected] or by visiting our website at www.tatacommunications.com.

TOP 10 ENTERTAINMENT TRENDS FOR THE 21ST CENTURY14

1. New digital technologies will reshape the economics, production, distribution, and marketing of the entertainment industry.

2. Traditional media enterprises must learn to adapt new Internet and computer technologies to maintain competitiveness.

3. The convergence of the Internet with TVs, telephones, kiosks, autos, and wireless devices will create many new media channels.

4. On-demand interactive entertainment content that is personalised for individual preferences will be a standard feature.

5. Advanced virtual reality bundled with digital agents and holographic entertainment worlds will transform our experience of entertainment.

6. Movie theatres will receive digital broadcasts and satellite downloads of movies, video conferencing, and other interactive programming.

7. Faster, smarter and more powerful multimedia communications devices will enhance our capacity for producing and distributing entertainment.

8. Digital TV will provide new programs where we will experience real-time participation with the media content, personalities, and shows.

9. Edutainment, the merger of entertainment and education, will offer a new genre of programming that will be greatly in demand.

10. Nontraditional entertainment producers, empowered by Power Tools, will change the industry, offering new products, channels, and innovations.16


mailto:[email protected]


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Digital Entertainment World created this roadmap to show how tech and media partnerships — or ecosystems — are helping creators and traditional media companies work together and profit in the digital age. Along the outer edge next to “Consumers” are the connected devices that are rapidly becoming the gateway to content. The “Enablers” are the enterprises that make the system work by providing essential services such as Cloud Services, Network Services, Storage, Location Based Services, Security and so on.

Source: http://www.dewexpo.com/the-digital-entertainment-ecosystem-2/


http://www.dewexpo.com/the-digital-entertainment-ecosystem-2/

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REFERENCES1. http://www.mediapost.com/publications/article/239642/global-demand-

pushing-digital-consumption.html

2. http://www.mediapost.com/publications/article/239642/global-demand-pushing-digital-consumption.html

3. www.globalwebindex.net

4. https://www.bcgperspectives.com/content/articles/center-consumer-customer-insight-marketing-digital-disruption-indias-media-industry-seizing-opportunities/

5. http://www.nielsen.com/us/en/insights/news/2014/nielsen-estimates-116-3-million-tv-homes-in-the-us.html

6. https://newsroom.accenture.com/industries/media-entertainment/consumers-taking-control-of-their-entertainment-ecosystems-accenture-survey-finds.htm

7. http://www.telecompetitor.com/accenture-77-of-consumers-use-a-computer-while-watching-tv/

8. http://razorfishoutlook.razorfish.com/articles/forgetmobile.aspx#01

9. http://www.internetworldstats.com/stats.htm

10. https://www.superdataresearch.com/blog/esports-brief/

11. http://www.gamesindustry.biz/articles/2015-02-17-report-esports-revenues-to-hit-usd465m-in-2017

12. http://www.fsta.org/?page=demographics

13. http://www.ipdigit.eu/2014/07/media-ecosystems-a-definition/

14. http://www.globalfuturist.com/about-igf/top-ten-trends/top-ten-entertainment-trends-for-the-21st-century.html


http://www.mediapost.com/publications/article/239642/global-demand-pushing-digital-consumption.html




http://www.globalwebindex.net

https://www.bcgperspectives.com/content/articles/center-consumer-customer-insight-marketing-digital-disruption-indias-media-industry-seizing-opportunities/



http://www.nielsen.com/us/en/insights/news/2014/nielsen-estimates-116-3-million-tv-homes-in-the-us.html

http://www.nielsen.com/us/en/insights/news/2014/nielsen-estimates-116-3-million-tv-homes-in-the-us.html

https://newsroom.accenture.com/industries/media-entertainment/consumers-taking-control-of-their-entertainment-ecosystems-accenture-survey-finds.htm



http://www.telecompetitor.com/accenture-77-of-consumers-use-a-computer-while-watching-tv/

http://www.telecompetitor.com/accenture-77-of-consumers-use-a-computer-while-watching-tv/

http://www.internetworldstats.com/stats.htm

https://www.superdataresearch.com/blog/esports-brief/

http://www.gamesindustry.biz/articles/2015-02-17-report-esports-revenues-to-hit-usd465m-in-2017

http://www.gamesindustry.biz/articles/2015-02-17-report-esports-revenues-to-hit-usd465m-in-2017

http://www.fsta.org/?page=demographics

http://www.ipdigit.eu/2014/07/media-ecosystems-a-definition/

http://www.globalfuturist.com/about-igf/top-ten-trends/top-ten-entertainment-trends-for-the-21st-century.html

http://www.globalfuturist.com/about-igf/top-ten-trends/top-ten-entertainment-trends-for-the-21st-century.html

ABOUT TATA COMMUNICATIONSAt Tata Communications, we do more than just lead the way in communications technology; we also offer forward-thinking ways of doing business. We can create the commercial model to suit your business, taking into account everything from managing capital costs to scaling capacity in line with your growth. Every day we’re working to increase our network capacity, capabilities, and services to benefit our customers.

Over the past decade, we have evolved from a wholesale service provider serving the Indian market to a leading provider of A New World of Communications™ to enterprise customers and service providers worldwide. We are a global company with roots in emerging markets: Headquartered in Mumbai and Singapore, we have 8,000 employees across 38 countries. We are committed to acting ethically and responsibly. Two-thirds of the equity of our holding company is held by philanthropic trusts that have created national institutions for science and technology, medical research, social studies and the performing arts. The trusts also provide aid and assistance to NGOs working in education, healthcare and livelihoods.

We are the world’s number one provider of international wholesale voice services, facilitating over 53 billion minutes per year. And we own and operate one of the most advanced and largest subsea cable networks, including the only wholly-owned fibre ring around the world, enabling customers and partners to reach 99.7% of the world’s GDP, with connectivity to more than 200 countries and territories across 400 PoPs, as well as 1 million square feet of data centre and collocation space worldwide.

www.tatacommunications.com


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