13 Nov Deloitte: The Future of Home Entertainment
Finding opportunities amid growth and fragmentation
As new digital technologies, rising consumer expectations, and shifting cultural habits upend business models, many media companies find themselves struggling to adjust to the ongoing disruption. Consumers are seeking clarity, too.
How can you respond to the developments now taking place across the industry and prepare for new trends that are unfolding? You can start by examining some of the major forces at work today. Here’s a look at some key issues and topics that are in play with entertainment:
- Simplifying choices
What can you expect? Possibly the emergence of new players that will bring together many sources of content while attempting to make viewing choices simple for viewers. Players that can aggregate or re-aggregate content to deliver variety yet simplicity could find themselves staring at a golden opportunity. In addition to spurring potential consolidation, today’s highly fragmented market also could inspire direct-to-consumer breakouts or even embolden new players that could go head to head against entrenched powerhouses.
- Radical transformation of insights
Insights have always lain hidden among the data—just waiting to be discovered and acted on. But the vastness of today’s data—both structured and unstructured—and the degree to which modern analytics applications can help you sort through it can change the game drastically. Today’s data and tools can enable media and entertainment companies to segment audiences into the smallest groups imaginable—and then precisely deliver targeted content and advertisements to those groups.
- Owning the customer
Big industry mergers in the works will likely tighten the bonds between the creators of content and the owners of delivery networks. Net neutrality issues aside, an organization that can operate at the intersection of content creation, content delivery, and the consumer experience stands to reap great rewards. Such an organization could have unprecedented “ownership” of the customer.
- Small format, big opportunity?
Shorter-form content—12-minute episodes, for example—could make it easier for a consumer to “snack” on content. They could effectively binge-watch a series during these brief daily “content snack” windows. For content creators, there’s a legitimate opportunity to capitalize on the binge-watching trend and to fill in the cracks with short-form content that a viewer can consume throughout his or her day.
As entertainment continues to undergo an evolution and as the industry seeks to get ahead of challenges, your organization may face big decisions on technology enablement, market opportunities, and more.
Principal, Deloitte Consulting LLP