Appetite for Disruption: Realigning Digital Video Business Models

Appetite for Disruption: realigning digital video business models(From the Bringing TV to Life Series)

Copyright © 2016 Accenture. All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

A wave of disruptive innovation is now engulfing the video industry. Trends that until recently have held sway are becoming unsustainable.

As the industry transforms itself, the stakes are high.

> $500 billionThe value of the global video market.

3Copyright © 2016 Accenture All rights reserved.

Total Pay TV Revenue, 2015–2019c, $US billions. Source: PWC and SNL Kagan 2015

All change: an industry in flux

This growth has been propelled by advances in technology…and changes in consumer demands


The advent of highly optimised software-driven solutions have made OTT

propositions more portable, scalable, and accessible

Technologies driving QoE is enabling businesses to

differentiate between quality and “freemium” content.

Cloud technology and big data provide an affordable way

to launch and optimise product

Consumers expect constant connectivity and immediate video

provisioning across all their gadgets

Portability of devices is changing content consumption trends and

driving requirements for one-to-one digital relationships

Proliferating OTT services with unique content propositions

challenge the value of existing carriage agreement deals as they

gain popularity.

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In the event you need to collaborate, how can you do so in a way that helps maximize leverage and profitability in your business transactions?

How are you going to build the capabilities needed to be successful?

What type of digital video business do you want to be?

Traditional Providers and Aggregators need to take three fundamental decisions:

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Two new capability models to consider:

Digital Content Providers

Digital Content Aggregators

While a simplified view of the relationship between traditional Providers and Aggregators may look like this…


An evolving value chain



HBO NOWThe rush to D2C OTT

SKY and NOW TVFrom Aggregator to D2C DCP

SLING TELEVISIONFrom Aggregator to DCA

DirecTVAggregator consolidation

Traditional Providers and Aggregators are already responding


AMAZON PRIMEFrom DCP to DCA

NETFLIXFrom DCP to global DCP

YOUTUBE REDFrom DCA to DCP

Digital natives are also assessing how best to position themselves

Tomorrow’s transformed digital video industry value chain—a virtuous circle


Copyright © 2015 Accenture All rights reserved. 12

Digital Content Providers (DCPs)


5. Support multiple business models.

4. Get noticed.3. Stay close to the customer.

2. Move fast.1. Work together with platforms and devices.

Digital Content Providers

Five key strategies to become a Digital Content Provider


ADVERTISINGMarketing & commercial offerMultimedia ad sales & billing

Traditional ad OperationsDigital ad operations

Direct marketing (content) to drive scale

Digital ad optimization

CUSTOMERPROPOSITIONS

Branding & digital marketingDigital salesDigital customer service

Customer experience designCustomer / audience analyticsSocial interaction

Integrated multi-channel engagement, schedulingMulti-business-model platformsMulti-distribution product development

Segmentation-informed curation & commissioningInteractive and innovative content experience

CONTENTPRODUCTION

Resource planningNews production

Program & promo productionSport & live event production

Segmentation-informed curation & commissioning

Interactive and innovative content experience

CONTENT/SERVICEDELIVERY

Broadcast play-out & controlService delivery

Real-time content managementContent protection

Multi-business-model platforms Multi-channel content repurposing / supply chain

CONTENTPROCESSING


Content acquisition & QCContent management

Archive managementContent processing

RIGHTS MANAGEMENT


Content financial & budgetMarket screening & sourcing

Distribution & licensingContent performance & analytics

PROGRAMMING & PLANNING

Multi-platform planningMulti-platform format creation

Linear scheduling & programmingVOD catalogue planning & management

Integrated multi-channel engagement & schedulingMulti-distribution product development

Segmentation-informed curation & commissioningDigital content optimization

Traditional Content Provider Capabilities

New DCP Capabilities Required

Winning Capabilities of Digital Content Providers


Digital Content Aggregators

Seven key strategies to become a Digital Content Aggregator

7. Build trust.

6. Leverage the living room advantage.

5. Aggregate insights.

4. Accelerate new digital capabilities to support the ecosystem.

3. Differentiate through quality of service and experience.

2. Scale up to succeed.1. Allow content to remain king.


SERVICE MANAGEMENT OPERATIONS

Application & infrastructure opsNetwork engineering & operations

Service monitoringField force

Multi-channel quality of service / experienceContent and subscriber optimization services

Cross-DCP care servicesDevOps-driven platform development models

AD SALES/AD ENABLEMENT

Marketing & commercial offerMultimedia ad sales & Billing

Traditional ad operationsDigital ad operations

Data-driven package and ad targetingData-driven direct marketing enablement

Targeted and dynamic ad servicesCross-DCP targeting

SERVICE DELIVERY/NETWORK

Service deliveryContent protection

Distributor enablement Distribution products and servicesData-driven direct marketing enablement

Multi-channel quality of service / experienceContent and subscriber optimization services

OFFERINGMANAGEMENT

Content financial & budgetDistribution & licensing

Content performance & analytics Content and subscriber optimization servicesData-driven package and ad targeting

Content optimization enablementCross-DCP targeting

SALES &MARKETING

Customer serviceCustomer experience design

Customer / audience analyticsSocial interaction

Distribution products and servicesData-driven package and ad targetingDigital package optimization

Cross-DCP care servicesMulti-channel quality of service / experience

Traditional Aggregator Capabilities

New DCACapabilities Required

Winning Capabilities of Digital Content Aggregators

Become a “Digital Video Business” today—or pay the price tomorrow.Future winners will be determined by the choices they make today.

Read the full report here

https://www.accenture.com/us-en/insight-cmt-bringing-tv-to-life-digital-video-business?src=SOMS&c=cmt_comdatechss_10000002&n=smc_0416

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Copyright © 2016 Accenture. All rights reserved. This document is produced by consultants at Accenture as general guidance. It is not intended to provide specific advice on your circumstances. If you require advice or further details on any matters referred to, please contact your Accenture representative. This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Accenture and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks

About Accenture Digital VideoAccenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.

About this seriesAccenture’s “Bringing TV to Life” series aims to build an understanding of the technology and business trends and market drivers that are radically reshaping the video industry. Our perspective reflects our experience with players across the ecosystem and makes use of Accenture’s primary industry surveys. Our series aims to help all the players in this rapidly evolving space to accelerate their journey as high performance businesses.

To learn more, please visit www.accenture.com/pulseofmedia

ContactSef TumaChief Strategy OfficerAccenture Digital [email protected]@accenture.com

https://www.accenture.com/us-en/pulse-of-media?c=cmt_comdatechss_10000001&n=smc_0416

mailto:[email protected]

Appetite for Disruption: Realigning Digital Video Business Models

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