By Mike Alva
We have reached the Age of Abundance in premium content with more than we can ever hope to watch, and more options coming over the next 12 to 24 months.
What does this mean for providers and consumers? Watching, marketing and delivering TV programs, movies and other video content will never be the same.
Over-the-top (OTT), cord-cutting, binge watching, peak content, and many more, have become the lexicon of the TV and film industry. Consumption habits changed, and the traditional delivery model has been upended.
“Though there are many options, the overall consumer experience can be frustrating,” says Michelle Wroan, KPMG’s U.S. Media Sector Leader, who has served companies in the technology, media and consumer markets for more than 20 years. “This is an unsustainable situation.”
Frustration can be the result of inconsistent access and search results, as well multiple logins and multiple billing sources to obtain the right mix of content a consumer may want to watch.
Wroan says the path to abundance, driven by the rapid growth in consumer demand for content anytime and anywhere, has led to these trends that are complicating the market:
This has produced what KPMG has defined as “the race for the platform,” as providers sprint to become one of the winners. The race is to develop a platform business model, just as tech giants have done, but for premium video content. And of course, mobile, and the rollout of 5G, will play a significant role, as the new technology will extend broadband capabilities, beyond traditional Wi-Fi, to all wireless.
Cable companies, wireless service providers, technology giants and media companies are evolving with the goal of creating the winning combination -- the right balance between content, price, access and consumer preferences in the evolving streaming OTT ecosystem. One interface, one subscription, Wroan and KPMG believe.
That’s why we are seeing cable and wireless companies acquiring content, media companies launching their own streaming service, and tech companies becoming content producers, and these converging competitors announcing free streaming platforms recently, as well as paid.
“It is likely that this will be a market where the winners will be a relative few companies, not “the many,” Wroan said.
Due to her deep experience, Michelle Wroan understands the challenges, risks and opportunities facing these companies in this race.
To speak with Michelle about the media industry, please contact Mike Alva, mobile (925) 878-5488, firstname.lastname@example.org; Twitter - @michaelalva.