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8/13/2019 Accenture_The Future of TV
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Bringing TV to Life, Issue II
The race to dominate
the future of TV
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Bringing TV to Life 3
Jan
09
TRSMon
thlyVa
lues
Netflix, 5.92
Pay TV Segment
Free-to-Air Segment
Fe
b09
Mar
09
Apr
09
May
09
Jun
09
Jul09
Aug
09
Sep
09
Oc
t09
Nov
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Jan
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Jan
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b10
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Apr
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Oc
t10
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10
6.0
5.0
4.0
3.0
2.0
1.0
0.0
CBS, 3.61
Sun TV, 3.07
ITV, 2.83
TWC, 2.75
RTL, 2.71
Antena 3, 2.22
DirecTV, 1.93
TIF1, 1.84
Dish TV, 1.80
BSkyB, 1.62
Comcast, 1.61
Televisa, 1.49
Nippon, 1.45Mediaset, 1.41
Canal Plus, 1.33
Tokyo Br, 0.91
Dispersion2= 2.70
Figure 1 Accenture Shareholder Value analysis: the broadcasting industry
Bringing TV to Life
ntroduction
How Over-the-Top TV isreshaping the video industryThe box in the corner of the room is breaking out. The impactof the Internet on TV is only the beginningbut its alreadychanging everything. Consumers are taking control of their ownviewing, creating personal schedules and using different deviceso dip into video when and where they want. The Internet has
grabbed the remote to control a whole new world of TV viewing.And everyone in the industry needs to tune in.
he broadcast sector (both pay and free)
s emerging from one of the toughest
eriods in its history. During the recent
ecession macroeconomic forces
ombined to provoke panic within the
ndustry and drain investors confidence.
While the upturn in the economy has
iven traditional broadcasters some
nancial stability, the current bounce
hould not obscure some of the more
tructural trends and issues that still
hreaten to overwhelm media busi-
esses that do not embrace and speedp their digital transformation journey
owards a multiplatform digital era.
he performance of Netflix versus the
more traditional pay and free-to-air
roadcasters clearly highlights the
ifferent expectations that financial
markets have about the sustainability
f traditional broadcasting business
models, and the potential of truly
interconnected business to consumer
models to gain traction and generate
alue at scale.
IPTV and Internet TV are often confused
with one another, but in fact they are
quite different. IPTV has matured (in the
few countries where it has been able to
grow) into another form of pay TV, and
involves the delivery of high quality
video content to a captive consumer
device over a managed network.
Internet TV (or Over-the-Top TV),
defined as the distribution of video
content to a wide range of IP-enabled
devices (TVs, PCs, mobile phones and
tablets) over the unmanaged Internet,has the potential to shift the existing
balance of power within the broadcast
sector and the wider communications
industry. Back in the late 70s a very
popular song celebrated the golden age
of a radio industry that was then on
the brink of demise at the hands of TV.
Internet Killed the TV Star could be a
potential hit in the charts of 2015.
We have entered a new era, an era
where even if TV remains the primary
screen for video consumption, the
long-term fragmentation of the
audience will challenge traditional TV
business models in yet another example
of media meltdown. Deep convergence
between television and Internet has
finally arrived and as a result media
companies can no longer ignore
fundamental differences in the underly-
ing business models and in the enabling
technologies design principles.
Some of the sources of competitive
advantage of the traditional broadcast
model are being questioned: Proprietary
and vertically integrated distribution
networks are being challenged by open
broadband distribution and linear top
down programming (complemented
by catch-up and video-on-demand).
Moreover, the traditional rights
windows, which gave broadcasters
almost monopoly over quality content,
have multiplied, and business-to-
business revenue models are now beingquestioned by potentially superior
business models that are based on a
deeper and more direct relationship
with the end consumer.
In the first Point of View in the
Bringing TV to Life series, issued in
2010, we focused on defining the
Over-the-Top TV (OTT-TV) phenomenon
and understanding its differences with
IPTV and its relationships with the
online video space.
In this latest installment of the series
we will focus on:
unders tanding the drivers behind
the acceleration of Internet TV and
identifying some of the enablers and
challenges that could facilitate or
limit its mass adoption;
outli ning the increased competitive
pressure brought to the broadcast
sector by Internet TV with players
from different backgrounds attracted
by a multibillion dollar industry
segment with high price earnings
ratios; and
presenting some potential end state
scenarios for the industry and the key
capabilities that successful Over-the-
Top providers need to build.
8/13/2019 Accenture_The Future of TV
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he TV screen is both a gold mine and
mirror in which broadcasters can
ake stock on a daily basis of the need
or change in their business models. A
irect attack on that screen by players
oming from outside the TV industry
electronics companies, Internet
ggregators, telcos, and so on) will
aise and is raising, attention levels
nd driving reactions. In this paper we
will argue that these reactions will
eed to be built not on the traditional
ources of broadcasting competitivedvantage but instead on new ele-
ments that are derived from the
nternet experience, and will include
he need to ensure:
standards and ubiquity across
platforms rather than walled
gardens built on proprietary
devices and networks;
seamless integration across linear
and non-linear TV, broadcast and
broadband;
the ability to partner with other
industry players rather than attempt-
ing to rebuild vertical integration in
the industry value chain;
a true multi-screen approach;
not just content (which could
become a king without a crown)
but consumer content services that
leverage the effective use of
different screens to build consumer
stickiness and loyalty; and
large, established players having
the humility to recognize that they
need to invest in new capabilities
(such as consumer insight,
service creation, and application
development).
Clearly the threat of new players
entering the broadcasting space
by leveraging Internet TV is real, is
happening now and is a major issue.
But we argue that if Google can
become a broadcaster then the new
order could also see a broadcaster
becoming a Google.
Amid all this uncertainty, however, one
thing is sure: todays video consumers
have never had it so good!
Vision and realityThe once pristine vision of convergence between broadcastand broadband technologies is being overtaken by the messyreality of conflict and volatility with little clarity about whaties ahead. The outcome of this volatility is uncertain atbest and will clearly vary across geographies and differentregulatory frameworks.
Bringing TV to Life Bringing TV to Life 5
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Bringing TV to Life 7Bringing TV to Life
Generally speaking, the Internet
isrupts media businesses in three
ways:
t removes barriers to distribution,
which previously provided the basis for
monetization. It provides an abundance
f free content that shapes consumers
xpectations that content should
lways be free and therefore under-
mines models based on scarcity. And
t grabs a larger share of the time that
onsumers devote to other media.
The current reigning champion of
Mediatelevisionhas thus far
remained relatively unaffected by
the rise of the Internet. Three pieces
of evidence offer proof that:
Television broadcast rights continue
to command world class price
tags (NBC recently agreed to pay
US$2billion for 2010 and 2012
Olympics);
Consumer paid programming on
cable and satellite has recentlyprovided some of the only bright
spots for recession-battered TV
companies;
Although skyrocketing, online video
consumption seems not to be at the
expense of linear TV but instead is
incremental and additive.
But there are a number of strong forces
driving unprecedented change in
the broadcast industry. Broadband
penetration is on the rise across
the world. In the EU, the five most
connected countries have an average
broadband penetration of 50 percent,
and 80 percent of those connections
are of sufficiently high bandwidth to
support OTT-TV consumption.2Gartner
predicts that by 2014 broadband
connections globally will number
644m.3
And all this connectivity means online
video consumption is on the rise.
In the United States in December 2010
there were 88.6m unique daily online
video consumers and almost 179m in
an average month in 2010.4 Usage is
also increasing considerably as figure 2
shows, although, and this is very
important since it reinforces the need
for seamless integration between the
two worlds, this is not at the expense
of linear programming.
The winds of change are blowing
The Internet has become a mainstream news and entertainmentmedium, but its path to such scale has been far from smooth. Onhe way it has met resistance and disrupted many long standing
media businesses, publishing being one of its first victims.
Patterns of video consumption are
changing fast and the new video
consumer has become a complex,
multifaceted user whose needs and
wants require a customized approach.
The active vs. passive differentiation
has become less relevant only because
active consumption has become more
mainstream and has spilled from young
people to other demographic segments.
Consumers are increasingly used to
viewing content on their terms and
not by appointment. This means thatloyalty is increasingly directed towards
content brands rather than channel
brands. Understanding how consumers
find and access content is becoming
critically important. On-demand
services, catch-up TV, recommendations
rather than electronic program guides,
social networking applications,
convergent services, which follow the
consumer across devices (watch on
PC, continue on TV, receive advertising
and extras on iPad) are all key to
remaining relevant in this new and
rapidly evolving space.
Time spent watching TV is s till rising,
even among the younger generations,
and live TV is by f ar the largest
component of video consumption,
especially in Europe. According to
Forrester research, even in the most
sophisticated digital markets such as
Sweden and the UK, more than 70
percent of the total hours spent
watching TV each week are devoted
to live broadcasts. But the multi-
screen audience is growing and the
share of the European consumers whoexclusively watch TV on a TV screen
is decreasing fast. In 2009, only
63 percent of European internet users
watched TV only on TV, down from
80 percent in 20 07.5
Last, but by no means of least
importance, Gartner estimates that
by 2014 manufacturers will produce
over 70 million broadband connected
TV sets worldwide.6If we add to this
the number of Internet-enabled gaming
consoles and set-top boxes it soon
becomes clear that we are close to
seeing mass adoption.
Figure 2 Average daily online video consumption in EU-5 and United States
Average USA:31 min
Germany
Spain
France
Italy
UK
35 min
33 min
31 min
24 min
20 min
Linear TV (2010 avg) Online Video (Dec. 2010)
Total:258 min
86.5% 13.5%
88.2% 11.8%Total:
265 min
88% 12%Total:
275 min
90% 10%Total:
236 min
92.4% 7.6%Total:
266 min
Gartner Industry Research, Two Roads to TV 2.0, March 24, 2009.
Source: e-Media Institute Web-TV Intelligence & Strategies, March 3, 2011.
Gartner, Emerging Technology Analysis: Broadband-Connected Televisions, Consumer Technologies,
September 23, 2010.
Source: e-Media Institute Web-TV Intelligence & Strategies, February 22, 2011.
5 Forrester Research, The European Three-Screen Audience Is Growing, But TV Still Reigns,
April 22, 2010.
6 Gartner, Emerging Technology Analysis: Broadband-Connected Televisions, Consumer Technologies,
September 23, 2010.
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Bringing TV to Life
ven though it is still only in its
ormative stage, the emerging world
f Internet TV already has a fairly
well-defined set of players. We see a
umber of distinct groupings of these
layers emerging, each with their own
istinctive sources of competitive
dvantage to deliver video content to
onsumers from outside the traditional
aths of linear programming (terrestrial,
atellite and cable). These players can
e grouped around four main sources
f power: content, service, device andloud.
Content power
epresented by the traditional
roadcasters (free and pay) that see
nternet TV as a way of delivering
ew consumer experiences directly to
onsumers without being intermediated
y telecommunication companies and
PTV providers. While they see Internet
V as a great opportunity to evolve
owards becoming consumer c ompa-
ies, they also need to take care that
others do not take over their position.
In recent years, broadcasters have seen
their monopoly over auto-produced
content eroded. Rights holders (such
as the football leagues) and the major
studios hold the vast majority of the
much needed on-demand content
and could themselves have the same
ambitions as traditional broadcasters.
Service power
Represented by the telecommunication
companies who act as consumer and
service provider aggregators (triple
play/four play). These companies
serve as single point of c ontact and
a common user interface to the
consumer over any device and in
most cases owning a content delivery
network (CDN), which can guarantee
the much needed quality of service.
Device power
Manufacturers of TV sets, PCs, and
hybrid set-top boxes who have the
opportunity to become access gate-
ways and develop their own platforms
and widgets on which to host or
provide on-demand services. On one
hand they clearly have great consumer
traction and the ability as global
players to negotiate global content
acquisition deals, but on the other it is
hard to envision a world of proprietary
standards in which consumers decide
which TV set to buy based on the
content it carries. (However, it should
not be forgotten that one of the lead-
ing manufacturers, Sony, is also one of
the largest original content producersand distributors in the world.)
Cloud power
This group introduces a new concept,
encapsulating the ability to deliver
cloud-based infrastructure and ser vices
for management and distribution of
video to any Internet connected device.
While this group may lack the needed
media market expertise to strike
significant content deals, they have
developed a critical ability to intercept
and manage the needs and behaviors
of the online consumers.
A battlefield or a chessboard?
Bringing TV to Life 9
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0 Bringing TV to Life
ow, what are the key success factors
nd the new capabilities that will
e required to succeed in this new
ompetitive environment? There is a
ide range of both adapted and wholly
ew forms of behavior and abilities
hat players will need to acquire in
rder to be successful. These include:
The ability to create the future
platform for content consumption.
The video market is the evolution of
a platform that connects content
creators, advertisers and consumers.
Successful players in the past
managed to define unique platforms
(NTSC, PAL, SECAM) and adapt the
ecosystem to it. The same thing will
happen to online video consumption.
This implies the need to be present
across non-proprietary devices and
platforms, in particular connected
TVs and gaming platforms, the latter
being the next big thing in terms of
competing for the time and attention
of users on the TV screen.
The need to provide seamless
integration across linear and non-
linear services on hybrid broadcast
and broadband devices. As mentioned
before, linear TV remains the largest
component of video consumption and
VoD and catch-up services become
even more indispensable on the
back of a strong linear and live
programming.
The ability to understand CDN-based
and cloud-based content distribution
mechanisms and platforms.
The capability to leverage consumer
insights in order to develop tailored
and personalized video services
across all IP-based platforms (vs.
traditional top down programming
schedules) to build loyalty through-
out a 360-degree consumer experi-
ence and, crucially, to monetize them.
The experience and insight to shape
and successfully deliver partnerships
across the industry value chain in a
context where traditionally vertically
integrated value chains are
fragmenting and exploding.
The ability to attract and aggregate
content and value-add services from
a multitude of sources in a way that
consumers find easy to use, and
identify and present them with
relevant, personalized content.
igure 3 A competition framework
Con
tentPo
wer
Cloud
Power
Devi
cePowerS
erv
icePow
er
Sports Leagues/Rights Holders
Studios
FTABroadcasters
VideoConsumers
Hulu
Netflix
Amazon.com
STB Manufacturers
Electronic
Manufacturers
Cable/IPTVOperators
Telecommunication TV setManufacturers
Bringing TV to Life 11
8/13/2019 Accenture_The Future of TV
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ince the birth of c ommercial
elevision, TV broadcasting has been
ominated by a limited number of
takeholders (the networks, the TV
manufacturers and the advertisers)
nd has been ostensibly local in nature.
oday the future of TV is clouded by an
verabundance of stakeholders, most
f whom have a defensible position in
elevisions future. New stakeholders
uch as telcos, web search engines,
ortals, new media titans such as
pple and Microsoft, and otherectronic manufacturers are all
ooking for a significant stake in the
uture of TV, even if revenue models
or next generation broadcasting
remain a mystery to most of them.
Some of these players are truly global
in nature, this means that for the
first time c ompetition is becoming
extra-territorial, and with that change
comes a whole new mindset.
Over the last twelve months we have
witnessed a wide array of public
announcements and a number of
service launches. Every player in the
industry value chain is clearly marking
their territory and planting a flag inthe future landscape of television.
However, very few of these launches
are real industry plays. Most of them
tend to be individual efforts in a very
fluid and complex environment. We
believe that rather than an all against
all battlefield (which is what the
competitive landscape looks like today)
the situation will come to resemble a
chessboard, where alliances, partner-
ships and commercial collaborations
across different players will become
key imperatives for success. Speed to
market and agility are must have quali-
ties in this space, but so increasingly is
the ability to assess and understand
the complementary capabilities ofcompetitors and reward them
accordingly to ensure a larger slice
of the overall pie.
Bringing TV to Life 132 Bringing TV to Life
Includes music, movies, news,sports, television programs,and video production andadoption to web video (UserGenerated and Professional)
Content Management Content Aggregation Content Scheduling Content Transcoding Content Presentation Standards Conversion
Render content 2-way IP communication Integrated media ingestion (OTT-TV/Linear) through consumer electronics
Provides the videodistribution network DTT/Cable/IPTV/IP Satellite Next-Gen Wireless 4G. LTE
Right Holders ContentCreators
NetworkOperators
AccessProviders
UsersDevicesManufact-urers
ContentAggregators
Right Dealers
ProgramPackagers
Creation Aggregation Distribution Consumption
Value Chain
Description
Movement
Trends
FOX, BBC, Disney, MGM,
Paramount, NFL, Warner
Brothers, Sony BMG,Universal
ESPN, ABC, NBC, Discovery,
HBO, FOX, CBS, CNN, Vudu,Veoh, Google, BBC, iPlayer,
Hulu, Netflix
COX, Time Warner Cable,
Comcast, CableVision,
Verizon, AT&T, DishCisco, Sharp, Apple, LG,
Samsung, Motorola, Roku,
Sony, Vizio, Intel, Tivo,
Microsoft, Panasonic
igure 4 The emerging OTT-TV value chain
Making the headlines
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esides the current all-against-all
cenario (which is not sustainable in
he long term) we envisage four main
cenarios:
. Content is still king
n this case, content rights owners
manage to create a unique platform
or content consumption that
eamlessly supports most devices.
isintermediation is pushed to the limit,
etting users establish a direct link to
he major shops, and the leading brand
the content brand. User choices are
riven by content rather than other
actors, and business models are
xtremely shortened. In this scenario,
raditional aggregators have a reduced
ole in the best case (i.e. the cord-cut-
ng nightmare), and carriers have the
option to negotiate a carriage fee,
trying to extend their role to locally
relevant functions such as content
delivery, content encoding and digital
right management (DRM) settlements,
local front end/shop management, local
support, and digital home integration.
Over the years, broadcasters have
progressively lost a significant degree
of control over c ontent and increasingly
rely on specialized/independent produc-
ers. If they do not act swiftly in the
Over-the-Top space by developingcompelling multi-screen strategies,
they could face a considerable loss
of relevance in the on-demand world,
succumbing to the fast growing content
brands and being disintermediated by
them in relationships with consumers.
2. Devices drive users
This scenario sees users buying content
through the walled gardens that device
makers manage to establish (i.e. an
extension of the iTunes model to
devices and operating systems),
with content rights holders sharing
revenues with the device makers. There
is a substantial failure to build a unique
platform (as is presently the case in
the gaming business), and the role for
broadcasters and carriers changes: Broadcasters could try and build
strong customer relationships
leveraging better customer insight
and providing a more localized user
experience. This would require the
support of all devices, so that users
can access the same branded
experience across all of them.
Carriers should try to build the
underlying platform that unifies
the user experience across devices,
addressing technological complexity
and supporting aggregators in the
multi-screen play.
Bringing TV to Life 154 Bringing TV to Life
Scenario 3 Aggregators rule
3. Aggregators rule
To some degree, this is the natural
extension of existing business models,
with a complication owing to the
fact that the platform to deliver video
services may not be unique (as currently
happens with broadcasting). In this
case users still prefer specific shops to
consume content, with the difference
that jumping from shop to shop does
not require cord cutting. This is more
like the mall model, where the successof retailers is determined by their
ability to provide the best personal
user experience, shielding the user from
complexities derived from technology,
devices, and payment models. In this
scenario, there is a role for most of the
players in the ecosystem:
Aggregators: focused on content
acquisition, best user experience,
commercial relationship with the
customer;
Platforms: focused on service
enablement, technology complexity,
device support, content lifecycle,
security (this role may be taken by
both aggregators and carriers); and
Carriers: focused on content delivery,
user support, digital home enablement.
This scenario sees broadcasters fighting
for relevance and position against
the Internet aggregators, such as
Netflix and Google TV. Hybrid devices,
seamless integration with linear
programming, ubiquity in terms of
platforms and the ability to provide
multi-device services with specific
value proposition, rather than just
replicas of the original TV service,
become key capabilities in order
to succeed.
4. Scattered playing field
In this scenario, participants across
the entire ecosystem fail to create
partnerships and value chains remain
highly fragmented across geographies
and types of content. Unresolved
conflicts of interest between industry
participants mean few major deals and
the opportunities from OTT-TV are not
fully realized. A lack of standardization
across devices and content formats
means consumers have to engage withdifferent content providers and create
multiple, overlapping r elationships.
In this fragmented scenario (which
most closely resembles where the
market finds itself today) there are no
clear winners with content from many
sources on many different devices.
Telecommunication companies could
play an enabling role, helping consumers
to connect up all the services, devices
and content they need.
Scenario 1 Content is king
Scenario 2 Devices drive users
Fast forward:What scenarios in the future?Rather than a clear future scenario in the medium term, we seehe coexistence of several business models and value chains,
depending on local market conditions, industry structure andegulatory frameworks.
Center of Gravity
ExpandingDominating
Right Holders Creators Network Access UsersDeviceManufacturers
ContentAggregators
Right Dealers
Program
Packagers
Traditional Telco
Expanding
Center of Gravity
Dominating
Right Holders Creators Network Access UsersDevice
Manufacturers
Content
Aggregators
Right Dealers
Program
Packagers
Traditional Telco
Dominating
Center of Gravity
Right Holders Creators Network Access UsersDeviceManufacturers
ContentAggregators
Right Dealers
Program
Packagers
Traditional Telco
Right Holders Creators Network Access UsersDeviceManufacturers
ContentAggregators
Right Dealers
Program
Packagers
Traditional Telco
No Explicit Center of Gravity
Scenario 4 Scattered playing field
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Catch-up TV to pauseand watch at leisure
50%
40%
30%
20%
10%
0%
40%
Personal Video Recorder(ability to store andwatch whenever)
24%
Surfing the web onyour TV
14%
Ability to watch thecontent on otherdevices
12%
Having interactive/social networkingfunctionalities
11%
Total US Brazil Spain AustraliaGermanyUK Italy
Quality of service (i.e.clarity of the picture,speed of content delivery)
49%
HD (high-definition viewing)
27
%
User interface and abilityto find and manage
video content
14%
11%
Quality of recommenda-
tions of videos/ shows Imight be interested in
viewing
Total Male Female 4554 556425341824 3544
70%
60%
50%
40%
30%
20%
10%
0%
Bringing TV to Life 17
n this environment of overwhelming
market potential its more important
han ever for all players in this space
roadcasters and content providers as
well as network operators and other
nds of communications companies
o have a better understanding of
hanging consumer behaviors and
nterests, so that they can direct their
nvestments effectively.
o give companies deeper insights into
heir target customers as they launchr extend broadband TV and video
apabilities, Accenture has conducted
global survey of more than 6,500
onsumers around the world across
major geographiesthe United States,
nited Kingdom, Australia, Brazil,
ermany, Italy and Spain.
The results of Acc entures 2011
Video-Over-Internet Consumer Usage
Survey provide companies with a
view not only of current trends, but
also of where those trends are leading,
both in terms of video viewing habits
and where revenue growth may most
likely occur. Although traditional
linear TV offerings still dominate
consumer viewing habits, that
dominance is already open to
question.
The results from the survey show
how the new consumer is evolving:
They are using multiple devices to
watch video content and they are
multitasking while watching video on
a traditional TV set (over 48 percent
of respondents use a laptop while
watching TV, and with tablet penetra-
tion set to reach mass market levels,
this is clearly going to increase). They
are also looking for an anytime service
on TV through catch-up rather than
hardware based personal video
recorders (PVRs). And they are very
clear about the role of each device
and how each of them connects
together. They also see the PC as an
extension of the TV set to watch or
record programs via their laptop.
Whats more, these behavioral traits
are not specific to the Millennial
generation (the 18-24 age bracket)
but are rapidly spilling over to older
generations.
The ultimate stakeholder:The consumerThe era of broadband video is here, and its influencing theviewing behaviors of more than just younger generations.According to new research from Accenture, high percentagesof consumers of all ages around the world are now watchingvideo content over the Internet via a PC or TV.
6 Bringing TV to Life
Figure 5 Most important video-over-internet servicefeature: total and by geography
Figure 6 Most important video-over-internet technical feature by gender and age
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8 Bringing TV to Life
Content is king has been a standard
hrase of the broadcast industry for
any years. The statement remains
ue but in addition the quality of
echnical delivery of that content is
ow on the minds of many consumers.
sked to name the most important
echnical feature of Internet TV, about
ne half of the consumers we surveyed
round the world (slightly higher in
he UK and Australia) cited quality
f service, clarity of the picture and
peed of content delivery. This statisticalmost uniformly consistent across
l age groups, too.
Different types of companies are
experimenting with video-over-Internet
services, and savvy players are learning
both from past mistakes and current
stumbles. Original IPTV offerings, for
example, did not meet expectations
because they tried to imprison
consumers in proprietary, walled
gardens. Mobile video has struggled
with overcoming the restrictions of
smaller screens and devices.
In general, openness is becoming an
important marketplace characteristic,
and also a key to success. Today, many
players are jockeying for position in the
Over-the-Top space. New stakeholders
telcos, web search engines, portals,
device and software giants, and more
are looking to play a key role in how the
industry evolves. This is now a wide
open and increasingly global playing
field.
The ultimate stakeholder,however, is the consumer.
Bringing TV to Life 19
Core beliefs of Over-the-Top TVBroadcasting Companies
Closing window
Window of opportunity toseize market and eyeballsis now and closing fast
Set-top boxes are keynow, but will disappearwithin years
Access as key unique
selling proposition
To be successful in theOTT-TV space, telcos needto leverage their core
USPs around access,network quality andcustomer proximity
Aggregation andindexing
Any aggregation playshould aim for an opendelivery platform that
allows combiningaggregated (i.e. ownhosted) and indexed(i.e. referenced) content
Telecommunication Companies
Anytime beforeanywhere
Customers value timeshifting over placeshifting and three/fourscreen delivery
TV set as primaryscreen
The TV Set remainsthe primary screen togenerate revenue andwin the customer
PCs, Tablets and Mobilesare additive, having akey role as companiondevices
Web experience
The key value of bringingthe internet paradigm tothe TV is around contentdiscovery, recommendation,
relevance and socialnot browsing the web
Span linear and on-demandcontent, immediacy ofcontent experience,no deep menus
Consumers strongly indicate that they are ready for a truemulti-device experienceone that goes beyond simplyreplicating traditional TV on another device, and insteadcreates a new experience where content is important,quality is critical and personalization of the service is a must.Over-the-Top TV can succeed if companies understand andembrace these new consumer behaviors.
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Copyright 2011 Accenture
All rights reserved.
Accenture, its logo, and Accenture
High Performance Delivered are
trademarks of Accenture. 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.
About Accenture
Accenture is a global management
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and outsourcing company, with
more than 215,000 people serving
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Combining unparalleled experience,
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and extensive research on the worlds
most successful companies, Accenture
collaborates with clients to help them
become high-performance businesses
and governments. The company
generated net revenues of US$21.6
billion for the fiscal year ended
Aug. 31, 2010. Its home page is
www.accenture.com.
Contact us
To learn more about how Accenture
can help your company achieve high
performance by deploying services,
content and infrastructure for
advanced broadband video solutions,
please contact:
Francesco Venturini
Global Broadcast Lead
francesco.venturini@accenture.com
Angelo Morelli
Product Innovation offering area Lead
angelo.morelli@accenture.com
About the Author
Francesco Venturini is the Global
Lead for the Broadcasting and
Entertainment Practice. With over 10
years of experience within Accenture,
he works with major international
media and entertainment companiesand in particularbroadcasting
companies. Francesco leads complex
projects around Over-the-Top TV
(OTT-TV) and Digital Terrestrial TV
(DTT)helping his clients launch
new innovative services, restructure
existing businesses, and achieve
operational excellence. He is a regular
speaker at international industry
conferences and an author of many
strategic whitepapers around the
topics of Over-the-Top TV, RightsManagement, and Shareholder Value
Management for Broadcasting.
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