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Resiliance. Relevance. Agility.

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Accenture examines opportunities for the Media & Entertainment industry to reinvent itself in a complex, competitive market. https://accntu.re/3FQhEzq

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Resiliance. Relevance. Agility.

  1. 1. RESILIENCE. RELEVANCE. AGILITY. The media industry’s opportunity to reinvent itself in a complex, competitive market.
  2. 2. For a deeper dive into this play visit | accenture.com/reset-reinvent-rebound 2 Copyright © 2020 Accenture. All rights reserved. For a deeper dive into this play visit | accenture.com/reset-reinvent-rebound An industry disrupted The traditional media industry (video broadcasters, programmers, studios) is struggling to redefine its place in the world. The COVID-19 pandemic prompted more people to seek new shows and forms of home entertainment, creating an opportunity for platforms and new video-streaming entrants to move in. Costs are up, revenues are down, and brand equity is a thing of the past. Consumers follow content. And they’ve never had so much to choose from. Traditional media companies must grapple with the shift from linear to digital. With their well-established ad monetization models, platform companies have the advantage here. There’s nothing new about the battle between free-to-air broadcasters and pay-TV networks who program video content onto live linear channels and on- demand. But traditional media companies must catch up and find new ways to deliver content and advertising. The choice is stark: transform or step aside. Copyright © 2021 Accenture. All rights reserved. 2 To learn more visit | accenture.com/resilience-relevance-agility
  3. 3. Brands want omni-channel ad deals First-party data is more important in a cookieless world, making scaled platforms critical Increasing focus on attribution and ROI, enabled via digital OTT content investments has increased costs for all media companies (doubled from 2010 – 2020) Broadcasters represent 65% of spend, vs. 90% in 2010 Consumers care more about atomic content; brand moat has reduced Marquee sports and news are bastions for linear distribution, but sports increasingly finds a home in streaming Technology is not positioned as a strategic asset The commoditization of OTT Video distribution has reduced broadcaster hegemony (CDN costs, etc.) Cloud and SaaS solution spend to increase, decreasing creation time and reducing time to market Digital reduced regional barriers, enabling international opportunities Big data and analytics has increased the effectiveness and attribution of digital advertisements Disruptive forces have changed the media industry, redefining the rules Shifts & Signals Covid-19 accelerated consumer adoption of digital video services OTT VOD streaming platforms are now considered the primary video provider Consumers prefer more control over their viewing ecosystem Content is prioritized vs. brand when customers subscribe for services Price is still a key consideration for consumers in the “unbundled” world More consolidation to reduce costs and grow scale. Televisa and Univision, Proseiben and Mediaset, Discovery and WarnerMedia Failed convergence plays see divestiture e.g. AT&T /DirecTV/Verizon Technology players doubling down on content investments JVs between broadcasters to compete against global streaming services (e.g. Salto) Multi-media content assets being acquired to build broad, sticky relationships Consumer preferences Advertising shifts Content transformation Enabling the shift Playing for scale
  4. 4. The path forwards: Value Plays Fourvalue plays emerge for Media & Entertainment Companies 4
  5. 5. DEFINE. FOCUS. ACCELERATE. The four Value Plays will only yield value if media companies are able to align their organization to pursue a defined role within the transforming media ecosystem. This will require focus from the organization and necessary capital allocation to ensure the company can maintain relevancy as legacy linear revenues shrink and D2C platforms command high evaluations. By focusing the organizations' role, media companies have an opportunity to expand their total addressable market and lay the groundwork to capture incremental value, regardless of their role within the future media ecosystem. Content Creator Lifestyle Media Platform Consumer Media Company Aggregator 5
  6. 6. Ecosystem Powered THE VALUE PLAYS Content Creator Companies with a proven track record and assets to create unique content and experiences that are purchased or licensed by content distribution companies / platforms to share with viewers Aggregator Companies focus on becoming a platform "host" for channels, SVODs, and content from other companies through physical or digital means. Lifestyle media platform Organizations develop a unique, engaging platform and brand that users resonate with and 3rd party vendors want to leverage to sell their products and services. Consumer media company Companies develop and expand the reach of their own platform to offer content and test multiple monetization models. 6
  7. 7. Phase 01: Aggregator Phase 02: Consumer media company Phase 03: Lifestyle media platform Control points Sources of competitive advantage Monetization Technology strategy Investment strategy Addressable market PATHS TO GROW 7
  8. 8. 04 02 03 Data Strategy Advertising targeting User experience design​ Operational effectiveness/ improvement​ Content service/bundling User data collections HH reach and in-home penetration Existing subscription billing relationship Seamless customer experience Relationships with consumer media companies (OTT, etc.) Existing view of the customer (Data) Media boxes or devices Connected TV OSs Network expansion HH expansion/acquisition Devices Digital advertising Consumer billing relationship User journey design and prioritization (App placement) Ad / consumer data Single sign on. B2C Subscription revenues B2B Revenues from bundling Channels and/or SVOD products with Internet B2B Advertising Revenue API hub for OTT services Lean cloud network architecture Product innovation and design User experience and design PHASE01: AGGREGATOR 01 Sources of competitive advantage Investment strategy Control points Monetization 05 Technology strategy 06 8
  9. 9. OTT distribution solution User reach and brand recognition Content library and premium rights Service user experience / design Agreements with aggregators/OTT platforms First-party data collection Content investments (Production, rights, formats, etc.) Customer acquisition Tech investments (SVOD products, digital adv., etc.) IP rights Consumer billing relationship User journey design / prioritization in other platforms User content preference data feeds Ad blocks and monetization B2C subscription revenues B2C content transactional fees (e.g., TVOD, PVOD) B2B affiliate carriage fees B2B advertising revenues B2B data brokering revenues Ad strategy Payment / fraud strategy Digital distribution platform UI / UX strategy OS integrations and standardization PHASE02: CONSUMER MEDIA COMPANY Data strategy Advertising targeting (for owned content) User experience design Operational effectiveness / improvement Content service / bundling User data to inform product development and pricing 01 Sources of competitive advantage 02 Investment strategy 03 Control points 04 Monetization 05 Technology Strategy 06 9
  10. 10. User experience and design Third party integration and enablement Content capital investments Ad targeting and marketing Contextual, future-looking data and analytics (Data mining) Data products and engines tailored focused on platform expansion Brand recognition Network effects Content distribution Content catalogue Control point distribution Ecosystem strength / presence Retail / eCommerce talent Data-as-a-service capabilities Platform partner enablement Content investments (Production, rights, etc.) Customer acquisition Tech investments (SVOD products, digital adv., etc.) Data products / analytics Platform development Balance sheet strength Consumer billing relationship User content preference data feeds Ad blocks and monetization B2C subscription revenues B2C content and non-content transactional fees (e.g., TVOD, PVOD, merchandise) B2B affiliate carriage fees B2B advertising revenues B2B data brokering revenues 3rd party marketplace integrations Payment's strategy Content lifecycle innovation PHASE03: LIFESTYLE MEDIA PLATFORM Data strategy 01 02 Investment strategy 03 Control points 04 Monetization 05 Technology strategy 06 Sources of competitive advantage 10
  11. 11. Each of these value plays will necessitate specific priorities and tailored capabilities • HH reach & in-home penetration • Existing billing relationship • Seamless customer experience • Relationships with consumer media companies (OTT, etc.) • Existing view of the customer (Data) • Existing distribution solution • Reach & brand recognition • Existing library of content • Agreements with aggregators / OTT platforms • Data utilized to inform product decisions • Advanced production quality & facilities • Existing deals & relationships with A-list artistic talent & IP holders • Prestige / Brand for superior quality • Production scale & cost efficiency • Strong brand recognition / following • Existing content distribution solution • Existing content library / premium rights contracts • Relationships with 3rd party vendors / service providers • Data-as-a-service capabilities • B2C Subscription Revenues • B2B Revenues from bundling channels and/or SVOD products with Internet • B2B Advertising Revenue from owned content • B2B Licensing of internally- produced content • B2B Production-as-a-Service • B2B Studio facility rentals • Marketing • Billing (& general CRM capabilities) • App or API integration • Content productization • Content acquisition • Broadcasting capabilities • Digital Product Management (UI / UX) • Digital Marketing and Retail • Rights acquisition, Content Creation, & Production • Ad Monetization (Linear / Digital) • Data & Analytics • Content development & production • Talent management • Rights acquisition & management • Studio operations & management • Legacy broadcasting • Digital Product Management Digital Marketing and Retail • Content Creation, Production and Acquisition • Ad Monetization (Multi-format) • Data architecture & products • 3rd Party enablement • Advertising targeting (for owned content) • User experience design • Operational effectiveness / improvement • Content service / bundling • User experience design • Content Capital investments • Advertising targeting and Mktg. • Data productization • Operational effectiveness • Market research & targeting • Production operations effectiveness • Marketing effectiveness • User experience & design • Third party integration & enablement • Content Capital investments • Advertising targeting and Mktg. • Data products / Analytics • Operational effectiveness • Subscribers • Churn Propensity • Customer Acquisition Costs, Customer Lifetime Value • Cashflow / Profit Margin • Customer Experience, NPS • For the Linear side: Audience, profit margin, ad metrics, OpEx • For the Digital side: Subscribers, Engagement, Customer Lifetime Value (LTV), Customer Acq. Costs (CAC), Churn propensity, revenue, profit margin • Production costs • Facility & technology capital investments • Artistic talent costs • ROIC • Cashflow / Profit Margin • Linear: audience, profit margin, ad metrics, OpEx • For the Digital side: Subscribers, Engagement, Customer Lifetime Value (LTV), Customer Acq. Costs (CAC), Churn propensity, revenue, profit margin, vendor performance Revenue Model Competitive Adv. Key Capabilities Control Points Data Uses • B2C Subscription Revenues • B2C Content Transactional fees (e.g., TVOD, PVOD) • B2B Affiliate Carriage fees • B2B Advertising Revenues • B2B Data Brokering Revenues • B2C Subscription Revenues • B2C Content & Non-Content Transactional fees (e.g., TVOD, PVOD, merchandise) • B2B Affiliate Carriage fees • B2B Advertising Revenues • B2B Data Brokering Revenues Aggregators Consumer Media Companies Lifestyle Platforms Content Creators Success Metrics • Consumer billing relationship • User journey design & prioritization (Which apps / networks get priority) • Evolving role in Adv. Data control point • Single sign on. • Consumer billing relationship • User journey design / prioritization in other platforms • User content preference data feeds • Ad blocks & monetization • Facilities, production capabilities, talent moat • Consumer billing relationship • User content preference data feeds • Ad blocks & monetization
  12. 12. Business model evolution Aggregators Consumer Media Lifestyle Platforms Business Model Evolution Revenue Models Customer Segments Enabling Partners Value Proposition Content Subscription Multi-Channel Advertising Carrier Fees / Licensing eCommerce Marketplace as-a-service Data Products & Services D2C Content Users B2B Resellers B2B Enterprise D2C Brand Users B2B Vendors B2B Creators Hardware Acquisition Multi-Play Subscription B2B Channel Fee D2C Multi-Play D2C Aggregation B2B Advertising Single Sign On / Security Payments Services Hardware Producers Ability to integrate disparate content services into one seamless customer experience Fraud Services Digital Advertising Cloud Supply Chain Develop unique content experiences, selling directly to users and/or channel partners Integration Services 3rd Party Data Brokers eCommerce Services Foster a unique, differentiated experience users follow and brands want to participate in
  13. 13. Capability progression across the Value Plays Capability Evolution Corporate Strategy Advertising & Monetization Operating Model Data Foundation Marketing Targeting Bundle Packaging Business Services Tech Hub Aggregators Consumer Media Lifestyle Platforms Evolutionary Investments Bundled Service Aggregation (Multi-play) In-home OTT Device Creation Evolutionary Investments Digital Product Factory Retail Strategy Multi- Medium Content Distribution Evolutionary Investments Lifestyle eCommerce Platform Consumer Payment Services Onboarding Services Customer Churn Mitigation Strategy Negotiate Content Service Integrations Buy vs. Build Hardware Offerings Customer Experience Design Customer Acquisition and Churn Reduction Cashflow Management UX Design Content Bundling Operational effectiveness API Integration CRM/billing Lean IT Subscriptions & Fraud Multi-Channel Advertising Data Monetization Invest in Owned Content Properties Acquire Incremental Content Rights Expand Services Internationally Centralized Distribution Content Platform Data-Science Driven Content Development Content Investment Advertising targeting & marketing Data productization Cloud-based omni channel linkages New Format Innovation Content & Technology Integration Vendor Advertising On-Platform Consumer Engagement eCommerce Transactions Invest in Marketplace Capabilities Onboard Strategic eCommerce Vendors Foster an Integrated Ecosystem Platform Op Model Value-based mindset culture shift Consumer Feedback Loop Third- party integration Data products /analytics Experience Optimization Data & AI driven microservices Ecosystem partnership driven stack Turn-key 3rd party integrations
  14. 14. For a deeper dive into this play visit | accenture.com/reset-reinvent-rebound 14 Copyright © 2020 Accenture. All rights reserved. For a deeper dive into this play visit | accenture.com/reset-reinvent-rebound Resilience. Relevance. Agility. We believe these new value plays, supported by industry- specific solutions, can help traditional media companies transform and rediscover audiences and market opportunities. But the time to act is now. As traditional media companies look to protect existing revenues, raise profitability and deliver on expectations for future performance, they’ll need to choose a path that supports three essential tenets of success: 1. Demonstrate market resilience with a reimagined business model. 2. Create and position relevance as a competitive differentiator. 3. Respond to market demand with the agility provided by a cloud platform. Copyright © 2021 Accenture. All rights reserved. 14 To learn more visit | accenture.com/resilience-relevance-agility
  15. 15. Authors Marcio Guilherme Managing Director — Communications & Media Mark Flynn Global Research Lead — Communications & Media Gemma Moorby Global Media Network Lead Contributors Andrew Walker Senior Managing Director – Global Communications & Media Lead John Peters Managing Director, Media & Entertainment Industry Lead –West Mark Peters Managing Director – Media & Entertainment Raffaella Masoero ICEG Media Lead Andrew McCaffer UK/I Media Lead Alessandro Corneli Australia Media Lead Luis Bonilauri LATAM Media Lead Bryce Molano Strategy Senior Analyst Coletrane Goodman Strategy Senior Analyst Lisa Davis Communications, Media & Platforms Global Industry Marketing Lead Suzanne Broadley Global Media Industry Marketing
  16. 16. 16 About Accenture Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive,Technology and Operations services—all powered by the world’s largest network of AdvancedTechnology and IntelligentOperations centers. Our 569,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries.We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities.Visit us at www.accenture.com. Disclaimer: This document is intended for general informational purposes only and does not take into account the reader’s specific circumstances and may not reflect the most current developments. Accenture disclaims, to the fullest extent permitted by applicable law, any and all liability for the accuracy and completeness of the information in this presentation and for any acts or omissions made based on such information. Accenture does not provide legal, regulatory, audit, or tax advice. Readers are responsible for obtaining such advice from their own legal counsel or other licensed professionals. This document may contain descriptive references 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. Copyright © 2021 Accenture. All rights reserved. Accenture and its logo are trademarks of Accenture.
  17. 17. THANK YOU
  • PavanTyagi4

    Oct. 1, 2021

Accenture examines opportunities for the Media & Entertainment industry to reinvent itself in a complex, competitive market. https://accntu.re/3FQhEzq

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