by Steve Rotz
Moderator: Cindy McKenzie , Managing Director, Entertainment, Media and Communications Price Waterhouse Coopers
Albert Lai (AL) , CTO, Media at Brightcove
Kevin Gage (KG), Executive Vice President; CTO at National Association of Broadcasters
Harri Koponen (HK), Chief Executive Officer, NPTV
Saul Berman (SB), Partner & Vice President, Global Service Area Leader, Strategy & Transformation, IBM Global Business Services
Mahin Samadani (MS) , Vice President Fjord-Design and Innovation from Accenture Interactive
Part I of session was Cindy McKenzie's recent research findings:
• Consumers drive the digital “new normal” – 58% more time on mobile devices, especially iPads
• Fragmented viewership
• Game changer- the new value chain in entertainment Media and communications:
• Non-linear chain, now it’s more of an interactive web of responsibility.
• Relevancy is the cost of entry into the inner circle of your consumers. Fine line stepping onto privacy.
• An audience of one is the new normal – they will expect information tailored at an individual level. Want to be connected to the world, but on their terms.
• The fine line on privacy: 76% users willing to share personal information if they were offered free benefits; 80% if the company lets them know upfront how they are going to use it.
•61% consumers consider on demand services important in choosing a subscription package. Making information based on these types of services.
Building an audience – content discovery and curation.
• Surprising result - 88% respondents selected a show because they watched it in the past. Or if a channel was already on, they would keep it on to watch what else was on that particular channel.
•64% would look to online sources for automated recommendations on content. Not to friends or social. Based on actual as opposed to perceived viewing habits. “I trust the technology more than my friends because tech knows the truth in what I watch”
Battle for content: meeting consumer expectations while driving profitable growth. There’s a number of reality show viewers while live because interacting with social circles simultaneously.
•55% use mobile while watching TV, 56% say it is related to the show.
• Provide a superior customer experience. Programming needs to be flexible and agile.
Advancing relationships. Consumer preferences shape the value of experiences. Personalization is key.
• Changing consumer spending will continue to dramatically shape the industry. Will sacrifice to watch in lieu of fees (the trade-off).
• Value the consumer on an individual level. Use analytics to know their media preferences. Lack of visible customer data in many cases, and not integrated…e.g. “be unique and engage me!”
•CEO concern: 71% consumer spending and behavior. They are changing perceptives. In the top 3 business threats overall, which further emphasizes the importance of shifting business models to meet consumer demands.
•33% CEOs are extremely concerned about the speed of technological change. Main opportunity to grow business in top 3 months. More than any other industry we survey. Focused on developing an innovation ecosystem to support this growth:
•Evolution of business models to incorporate the curation of communities
•Content creators increasingly building direct relationships w/consumers
•Adverts are looking beyond traditional agency model
• Content distributors are increasingly looking to create their own content (used to be silos, now the lines have blurred).
Part 2 of Session was Open to Panel Q&A's:
* Question: Traditionally, content has been developed for TV first and mobile 2nd. Do you expect trends to increase? Think this design process will be reversed?
AL: At the high level, it HAS to. Publishers are looking for ways to go digital first. Pop up linear channels, personalized audience of one, based off location/demographic/etc. How quickly can you get the sales / monetization strategy aligned with that?
MS: Everyone transitioned into mobile first and the commercials didn’t make sense there. Mobile is an impetus for future transformation. Become the “uber” of the category and create customer delight.
KG: Music consumption increased….create pathways in customization but have equilibrium. Ultimately there will be MORE consumption, but consumer will pick and choose the time they want to do that. As content providers, you need to be savvy enough to hit all those points so customer can decide.
HK: Any screen where Internet is connected is the screens you should care about. Have to make the big screens in the homes more interactive. We can really energize content and make consumer the producer. It’s not second screen, but ANY screen.
SB: Need to change the primary screen and need to change the design. E.g. what NBC did with the Olympics. Give consumer more control, since mobile with them all the time. Music learned it, video learned it. It’s about giving them the experience at the right time, monetizing the right way.
Need to be where the world is GONNA be, to prepare for what it will be in the future.
* Question: There’s a need for different operating models within the content providers and distributors. How do you see people making the transition out of silos without difficulty?
SB: With most large organizations, they don’t want to talk to each other; but customers want cross platform options, so they will need to speak to each other better.
We listen to more music than ever before, and it’s also making more money than ever before…it’s just not all going to the same place anymore. Broadcast will be the same.
MS: At senior level –we just want to build things that delight them.
* Question: Increased formats AND personalization…
KG: Hit head on in the music space. Multiple ways content was displayed, etc. was complete reinvention of asset management. How do you manage all those assets in billable material to vendors the way they want it?
HK: The technology can prepare you e.g. the cloud, where don’t have to do everything yourself. But at same time don’t limit the customer choices and take away the ones who like things done a certain way
AL: We had a customer who reach grew 400% reach, and ad inventory increased but the ad fill went down. How do you drive value for your advertisers as well? You can create a unique lean-back experience.
HK: Europe hates advertising. I’m willing to pay X to not see it.
SB: 1/3 prefer ads, 1/3 prefer subscriptions, etc – a la carte is here to stay because need to give the consumer the choice in how they want to pay,
For example, a Star Wars ringtone…sometimes the bits of your content could earn you more money than by itself.
Q: When it comes to branding a multiview experience, I hear other models coming into discussion.
HK: A great example was the ringtones.
KG: But, how how do we apply the use of that innovation? Lots of experimentation, which is healthy for the industry.
SB: It’s like Facebook CTO at this event 10 years ago. I asked him, how you going to make money? He goes, “haven’t really thought about that.” Loyalty built followers and individual audience first, the rest followed.
HK: You have to be careful though, with new models come a premium experience. Of course if I want a VIP sing with me Justin Timberlake or Star Wars ringtone, I am going to expect to pay more.
*Question: Let’s talk about globalization with this broad NAB audience.
MS: To build on the presentation, there’s massive opportunity in developing countries like South America. Financial services or retail…same with content media. The way they want to consume will be different though, and you can prepare for that.
SB: The technology, platform, behavior and players change in every country. I’m working with telephonic companies in Europe who want to create content. Different platforms will play different roles in locations based on those customer behaviors. They will increasingly have to outsource to cloud so they can manage it.
HK: Exactly! That’s why we built on the cloud. Based on the content provider, they make those $ decisions.
SB: But the biz people need to know cloud is an enabler to new opportunities and that it is a business opportunity.
* Question: What do you see in emerging personalization?
AL: Live events are becoming more and more popular because it’s easier for customers to broadcast from anywhere. At E3, gamers from the show were uploading news. Opportunity there in regards to sponsorship, subscription, etc. also taking content (especially pre-recorded and packaging that into linear) – to create a new version of television.
MS: We were probably on cusp on user-unfriendly industries, having opportunity to transform from the outside and silos will come crashing down. Heading very quickly into people stitching together that curated experience.
KG: Looking at what a hybrid experience looks like with a mass audience, but interactive local element to it. Provides a very efficient delivery network. Providing that local context will start rising.
HK: CNN and others often refer to mobile news user on their program…
SB: Consumer is becoming a partner. We think it’s just in the beginning - early on in impact of curve. In the future, it will go to an “everyone and everyone” economy. Each of us will wear some wearable technology. Everything will be taken into context, and orchestrated for us based on data to provide what we want – it will be predictive. Where you have been, where you will go and want to go…what ads you will be receptive to etc. The great new world is just beginning…
* Question: Spotify for TV seems to be what consumers want more than anything…players like popcorn time are getting chased by lawyers but how do you see that playing out? Given entrenchment of rights, etc.
MS: Those pillars are so strong- mirror more like what we saw in cell industry. Many players never believed model would change and it did, with the iPhone. Need someone to come in and write really large checks to get this started...if android TV true, they are on the cusp of getting ready to do that.
SB: Someone will come in and make investments eg. Who would have thought Netflix would create content? If someone else isn’t giving consumer what they want, others will.
Everyone will like to have something easy to use in one place. However, content biz want to be able to sell their content in diff ways. That introduces this interoperability challenge. Conflict there.