Global Content Compass 2014 – Trends in Television & TV Distribution
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 our 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, our Global Content Compass 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.
Some of the key findings in our Compass 2014 are probably no surprise to people that observe the industry and developments closely. We outline them here and will also follow up with articles on certain segments of our survey over the next couple of weeks.
Cable TV and Satellite are still dominant
Cable TV / MSO and Satellite / DTH are the key infrastructure in most of the TV markets around the world. This is especially true for the more mature markets in Europe and North America. But even in these market is it not yet believed that we have reached full saturation. The cable industry in particular is optimistic to continue to see some growth. The satellite industry is less optimistic and will need to develop strategies for further growth – most likely through acquisitions and mergers.
MobileTV will win – Satellite will loose
Mobile TV on the rise
Mobile TV is seen as the boom sector for TV. Some markets (most when seeing a lack of traditional TV infrastructure and broadband services) are having already a significant usage of Mobile TV amongst its consumers. In these markets the growth is expected to continue and mobile devices are forecasted to become the dominant way of consuming TV here. The incumbent players will need to adapt formats and business structure to address these growth opportunities.
OTT services and new technologies are widely welcomed
The growth of OTT services and other new alternative distribution infrastructures is widely welcomed by the industry. A very overwhelming majority sees this as a beneficial development. OTT in particular is considered a way of changing the TV game entirely. New technologies will enable the industry to address new market segments more easily and focused. It is most of all an enabler for new revenue streams and alternative ways of monetizing content
Industry disruption through a new player
The industry is both in concern and hope for a completely different player to enter the market. New technologies are opening up the market and might make it easier for a non-traditional TV company to win customers. Different commercial models, the right selection of content (and maybe new own productions) combined with social media integration will make it a home run for a new market entrant – if this player is willing to invest substantial sums of money. A company like Facebook could be a key contender for such a move.
Facebook as the industry disruptor?
Keeping audience and consumer loyal is key
For traditional players it will become of greater importance than ever to keep their consumer loyal to their brand and offerings. They can do so with offering more content on demand, integrate closely with social media and creating their own high-quality content. In addition, establishing your brand as trusted source of content and as curator of certain niches and thematic topics will further foster the audience loyalty.
Sports is the King – and some other noble content grows as well
As it is no surprise, the industry does expect further growth in the sports content area. The expectations are high and optimistic. They focus will be on live sports event broadcasting and also addressing some niche sports segments. Besides sports the industry expects growth in children and family oriented content and in the entire world of factual content.
Finding your niche and target segment
The proliferation of distribution infrastructure and the ability for smaller players to enter the market will enable to address some segments of the market with more focus. For established, larger players it is
important to find out which niche or segments suits best – and it is likely that addressing family content and also the needs of elder citizen will be the way to grow in more mature markets.
New market segments: families and elder citizen
The Paradigm Shift: new ways to monetize content
Overall, the industry seems to be bullish when talking about future prospects for growth – independent of what platform they work with and in which markets. Technology is enabling new distribution and revenue streams. Creativity and innovation is everywhere and will bring alternative ways of monetizing content. Good news is also, that the consumer seems to adapt more and more to the idea of paying for good content and that this willingness will even grow.
Global Trends but differences locally
While the environment for television becomes more diverse and fragmented, it does open many new opportunities for growth. Our survey has much more depth and details than listed here in this short
summary. One thing we found is that some trends are very global while others correlate more with certain market conditions and situations. There are differences namely between markets with more traditional infrastructure and the once that have yet to develop their TV market as large (e.g. many parts of Asia and Africa). Here the disruption could be largest but also the growth opportunity is the biggest.
Africa, Asia and LatAm might see the widest disruption but also largest growth opportunity.
This is a brief summary of some aspects of our survey only. We have some further details on the various distribution infrastructures and how they can grow; in addition, we looked at how various specific content areas will change over the next few years.