Accenture_The Future of TV

8/13/2019 Accenture_The Future of TV

1/13

Bringing TV to Life, Issue II

The race to dominate

the future of TV


2/13


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Bringing TV to Life 3

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TRSMon

thlyVa

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Netflix, 5.92

Pay TV Segment

Free-to-Air Segment

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Jun

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Jul09

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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.


4/13

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


5/13

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.


6/13

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?



7/13

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

Google

VideoConsumers

Hulu

Netflix

Amazon.com

STB Manufacturers

Electronic

Manufacturers

Cable/IPTVOperators

Telecommunication TV setManufacturers



8/13

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


9/13

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


ContentAggregators

Right Dealers

Program

Packagers

Traditional Telco


ContentAggregators

Right Dealers

Program

Packagers

Traditional Telco

No Explicit Center of Gravity

Scenario 4 Scattered playing field


10/13

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%


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.


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


11/13


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.


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

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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

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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

[email protected]

Angelo Morelli

Product Innovation offering area Lead

[email protected]

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.

Documents

Accenture_The Future of TV