Global Content Compass 2014

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We have finalized our findings from our survey and interviews that we conducted over the past few months with industry players and experts all around the world. Some key trends have emerged: Cable & Satellite are the dominant infrastructure but satellite might loosing ground Mobile TV is the new way of distributing TV content and will see strong growth Social Media integration is key to growth for both content and distribution infrastructure A new external player will eventually enter the market and disrupt the industry Sports remains the most thought after content but new market segments will be targeted: families and elder citizen Significant difference in mature and developing markets when it comes to TV consumption

Transcript of Global Content Compass 2014

  • Global Content Compass 2014 Global Content Compass 2014 Trends in Global Television & TV Distribution June 2014
  • Global Content Compass 2014 Introduction & Disclaimer The Global Media Consult Global Content Compass 2014 is a snapshot of trends in global television and related television distribution infrastructure. The compass uses input derived from a global online survey amongst TV industry experts conducted in February & March 2014. Based on the survey results further research and analysis was done; in specific, a selected number of industry experts were interviewed in person, via phone or email exchange. We had around 300 respondents in our survey and eventually spoke with close to 60 different individuals all around the globe. Our interview partners are a good representation of executives in the TV industry both on infrastructure and content side of the business. They are from all parts of the world and with a good mix of expertise, insight and market know how. Nevertheless, it is not to be meant a scientific research nor does it provide statistical and empirical solid data. Our attempt is rather to provide an overview of trends in order to help players in the industry navigating their businesses. We hence waive any responsibility for business decisions made on basis of our findings. But we will happily consult you on making such decisions and developing your plan for growth. Global Content Compass 2014
  • Global Content Compass 2014 35% 45% 27% 18% 35% of our respondents are directly involved with content creation or acquisition. Content TV Platforms These respondents work in TV infrastructure such Cable, Satellite, IPTV etc. Industry Experts These are consultant, journalists, technology managers, researchers, etc. New Technologies 18% of our respondents work directly in one of the new technologies such as Mobile TV, OTT services or VOD. Our Respondents Roles
  • Global Content Compass 2014 Cable/ Mso 28% Sat./DTH 28% Terr 25% Mob 19% 23 TV Distribution Infrastructure Which distribution type is the dominant format in the relevant region of our interview partners/ survey respondents? We asked them to rank them and name the most dominant one. In most markets traditional infrastructure such as Cable/MSO & Satellite is the dominant TV distribution 1 Terrestrial is still still used in many markets as the main access to TV2 Terrestrial markets correlate with Satellite distribution as the second largest infrastructure and with large Mobile TV penetration 3 IPTV holds second place in many traditional markets and will further grow 4 There is still a digital divide in many markets especially when people use terrestrial access to TV: here analogue viewing is via terrestrial infrastructure and satellite is the digital venue. Mobile TV is popular in markets with weak or non existent cable and where satellite offers limited or expensive services. Mobile TV The hidden Champion
  • Global Content Compass 2014 Growth Trends TV Distribution When looking at trends for growth of various TV distribution infrastructures, you will not find much of a surprise. We asked our interview partners how they forecast the growth in their relevant markets. Overall, new methods (OTT, IPTV, Mobile) are seen as the main growth sector. Our respondents where asked to rank the growth potential of each infrastructure. 66% believe that mobile TV will show the largest growth potentia; followed by 60% for OTT potential and 50% for IPTV. l Non-traditional 25% of our respondents see a growth potential for DTH; and less than 20% for cable/MSOs; naturally, terrestrial is only seen with 10%. Traditional In Cable-dominated markets, a larger growth potential for IPTV is seen than in others. Cable/MSO Respondents in satellite markets are less optimistic on their growth potential for satellite than the overall group. Only 15% expect further growth. It seems that in these markets, the saturation is reached and new less developed markets have to be sought. The fear that a new player with OTT services is disrupting the industry is highest here. Satellite operators need to find ways to offer OTT, integrate with infrastructure on the ground and get into the mobile TV market. Satellite IPTV is having the best potential in cable markets according to our survey. Here it can rely on established (broadband) infrastructure and less competition from MobileTV. Especially when combined with attractive OTT offerings, it can have large growth. Cable/MSO see this rather as an opportunity than a threat and will likely launch their own IPTV/OTT services. IPTV A combination of OTT services and Mobile TV will have huge potential in less developed markets; especially if there is still terrestrial infrastructure as a key access for TV watching. In these markets 70% of our respondents believe that Mobile TV will further grow. It is only followed with some distance by 50% who believe in OTT growth; 43% for IPTV and only 28% for DTH and around 20% for cable or terrestrial. OTT & Mobile TV 1 2 3 4 5 6
  • Global Content Compass 201443 Mobile TV is only strong when other distribution infrastructure are weak in terms of penetration, service and offering. Especially true for Cable and Satellite. It is also strong, when no reliable & affordable broadband is available. Weak Alternatives OTT & Mobile combined can enable market domination of this infrastructure. The merger of the two technologies will make it difficult for any other player to challenge this position. OTT & Mobile Mobile devices become more and more TV viewing equipment. Smartphones & tablets offer comfortable viewing and interaction. They are on the verge of becoming the central TV hub and replacing the TV set. Mobile Devices as central TV hub Broadband access via mobile will eventually be the killer app most of all when combined with smart social media integration. This puts Mobile TV in pole position in almost all of the less devloped TV markets. Future Technology Mobile TV Markets a closer Look Our respondents expect in markets with already substantial usage of Mobile TV further strong growth of that infrastructure. The consumer is used to this ay of watching TV. New devices and content tailor-made for mobile will make it even more comfortable for the consumer. Take Aways from our findings about Mobile TV 1 2 3 4
  • Global Content Compass 2014 Non-traditional Services: a threat? We wanted to know from our interview partners if new services such as OTT, mobile, etc pose a threat to them or an opportunity. The response was clear: almost 86% consider it an opportunity Only a few fear the new services and see them as a threat. We investigated what these minority might have in common. What are the fears of the others? Industry disruption from a new player These respondents see a non-traditional TV company entering the market and disrupting the industry; and not having a plan themselve to counterattack 1 TV Consumption shifting towards VOD In these markets there is a strong trend towards VOD consumption away from linear. A threat for TV channels in particular in these markets. 2 Piracy Issues Respondents that fear new entrants and technologies typically deal with a tremendous amount of piracy issues in their markets. New technologies can enhance that problem and open up new battle with new market players. 3 Lacking Counterattack Strategy The respondents do only see offering more content as a plan for fighting off new entrants. A lack of other creative strategy makes them more vulnerable. 86% of our respondents consider new services such as OTT & Mobile TV an Opportunity 4
  • Global Content Compass 2014 The impact of New Technologies We addressed the impact of certain new technologies on the TV industry. Our respondents were asked to rank them from no impact at all to significant impact (game changer). OTT services & Technology is rated by 42% as a game changer Mobile viewing is also ranked by 42% as a game changer 37% believe IPTV delivery of content has the game changer role HD technology is listed by 31% as a game changer 4K Technology is ranked only by 17% as a game changing impact 3D Technology was only considered by 15% as a game changer OTT OTT was most often named a game changer in cable-dominated markets. It is also expected that a non-traditional player will enter these markets. In addition the integration of social media technology is seen as a key enabler for OTT growth. A strong growth of IPTV in a given market is seen as an indicator for OTT growth and a likely entry of a new player.
  • Global Content Compass 2014 Technology Revolution? Almost 57% believe that social media integration will be a key technology in the future. The supporters of this idea are especially strong in markets where they expect strong growth of OTT, IPTV and Mobile TV. It does also apply more to mature markets for they offer relevant broadband infrastructure and critical mass to make social media integration useful Social Media Integration Respondents who see new technologies on the horizon also believe that this will enable a variety of new revenue streams and creative content monetization models. Especially OTT services and Mobile TV are considered a way of earning income in the TV industry. New Revenue Stream What technology will potentially revolutionize the industry? We asked if our respondents see any revolution coming soon in TV T