(from the bringing tv to life series)/media/pdf-27/...sky and now tv from aggregator to d2c dcp...

Appetite for Disruption: realigning digital video business models(From the Bringing TV to Life Series)

Copyright © 2016 Accenture. All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture

.

A wave of disruptive innovation is now engulfing the video industry. Trends that until

recently have held sway are becoming unsustainable.

As the industry transforms itself, the stakes are high.

> $500 billionThe value of the global video market.

3Copyright © 2016 Accenture All rights reserved.

Total Pay TV Revenue, 2015–2019c, $US billions. Source: PWC and SNL Kagan 2015

All change: an industry in flux

This growth has been propelled by advances in technology…and

changes in consumer demands


The advent of highly

optimised software-driven

solutions have made OTT

propositions more portable,

scalable, and accessible

Technologies driving QoE is

enabling businesses to

differentiate between quality and

“freemium” content.

Cloud technology and big data

provide an affordable way

to launch and optimise product

Consumers expect constant

connectivity and immediate video

provisioning across all their gadgets

Portability of devices is changing

content consumption trends and

driving requirements for one-to-one

digital relationships

Proliferating OTT services with

unique content propositions

challenge the value of existing

carriage agreement deals as they

gain popularity.

5

In the event you need to collaborate, how can you do so in a way that

helps maximize leverage and profitability in your business transactions?

How are you going to build the capabilities needed to be successful?

What type of digital video business do you want to be?

Traditional Providers and Aggregators need to take three fundamental

decisions:

6

Two new capability models to consider:

Digital Content Providers

Digital Content Aggregators

While a simplified view of the relationship between traditional Providers

and Aggregators may look like this…


An evolving value chain



HBO NOWThe rush to

D2C OTT

SKY and

NOW TVFrom Aggregator to

D2C DCP

SLING

TELEVISIONFrom Aggregator to

DCA

DirecTVAggregator

consolidation

Traditional Providers and Aggregators are already responding


AMAZON PRIMEFrom DCP to DCA

NETFLIXFrom DCP to global

DCP

YOUTUBE REDFrom DCA to DCP

Digital natives are also assessing how best to position themselves

Tomorrow’s transformed digital video industry value chain—

a virtuous circle


Copyright © 2015 Accenture All rights reserved. 12


(DCPs)


5. Support multiple

business models.

4. Get noticed.3. Stay close to the

customer.

2. Move fast.1. Work together with

platforms and devices.


Five key strategies to become a Digital Content Provider


ADVERTISINGMarketing & commercial offer

Multimedia ad sales & billing

Traditional ad Operations

Digital ad operations

Direct marketing (content) to drive

scale

Digital ad optimization

CUSTOMER

PROPOSITIONS

Branding & digital marketing

Digital sales

Digital customer service

Customer experience design

Customer / audience analytics

Social interaction

Integrated multi-channel engagement,

scheduling

Multi-business-model platforms

Multi-distribution product development

Segmentation-informed curation &

commissioning

Interactive and innovative content

experience

CONTENT

PRODUCTION

Resource planning

News production

Program & promo production

Sport & live event production


commissioning

Interactive and innovative content

experience

CONTENT/SERVICE

DELIVERY

Broadcast play-out & control

Service delivery

Real-time content management

Content protection

Multi-business-model platforms Multi-channel content repurposing /

supply chain

CONTENT

PROCESSING


supply chain

Content acquisition & QC

Content management

Archive management

Content processing

RIGHTS

MANAGEMENT


supply chainContent financial & budget

Market screening & sourcing

Distribution & licensing

Content performance & analytics

PROGRAMMING

& PLANNING

Multi-platform planning

Multi-platform format creation

Linear scheduling & programming

VOD catalogue planning

& management

Integrated multi-channel engagement &

scheduling

Multi-distribution product development


commissioning

Digital content optimization

Traditional Content

Provider Capabilities

New DCP

Capabilities Required

Winning Capabilities of Digital Content Providers



Seven key strategies to become a Digital Content Aggregator

7. Build trust.

6. Leverage the living

room advantage.5. Aggregate insights.

4. Accelerate new digital

capabilities to support the

ecosystem.

3. Differentiate through

quality of service and

experience.

2. Scale up to succeed.1. Allow content to

remain king.


SERVICE

MANAGEMENT

OPERATIONS

Application & infrastructure ops

Network engineering & operations

Service monitoring

Field force

Multi-channel quality of service / experience

Content and subscriber optimization

services

Cross-DCP care services

DevOps-driven platform development

models

AD SALES/

AD ENABLEMENT

Marketing & commercial offer

Multimedia ad sales & Billing

Traditional ad operations

Digital ad operations

Data-driven package and ad targeting

Data-driven direct marketing enablement

Targeted and dynamic ad services

Cross-DCP targeting

SERVICE

DELIVERY/NETWORK

Service delivery

Content protection

Distributor enablement Distribution products and services

Data-driven direct marketing enablement


Content and subscriber optimization

services

OFFERING

MANAGEMENT

Content financial & budget

Distribution & licensing

Content performance & analytics Content and subscriber optimization

services


Content optimization enablement

Cross-DCP targeting

SALES &

MARKETING

Customer service

Customer experience design

Customer / audience analytics

Social interaction

Distribution products and services


Digital package optimization

Cross-DCP care services


Traditional

Aggregator Capabilities

New DCA

Capabilities Required

Winning Capabilities of Digital Content Aggregators

Become a “Digital Video Business” today—or pay the price tomorrow.

Future winners will be determined by the choices they make today.

Read the full report here

https://www.accenture.com/us-en/insight-cmt-bringing-tv-to-life-digital-video-business.aspx?src=SOMS

19

Copyright © 2016 Accenture. All rights reserved. This document is produced by consultants at Accenture as general guidance. It is not intended to provide specific advice on your circumstances. If you require advice or

further details on any matters referred to, please contact your Accenture representative. This document makes descriptive reference 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

About Accenture Digital VideoAccenture is a leading global professional services company,

providing a broad range of services and solutions in strategy,

consulting, digital, technology and operations. Combining

unmatched experience and specialized skills across more than

40 industries and all business functions—underpinned by the

world’s largest delivery network—Accenture works at the

intersection of business and technology to help clients improve

their performance and create sustainable value for their

stakeholders. With approximately 373,000 people serving clients

in more than 120 countries, Accenture drives innovation to

improve the way the world works and lives. Visit us at

www.accenture.com.

About this seriesAccenture’s “Bringing TV to Life” series aims to build an

understanding of the technology and business trends and market

drivers that are radically reshaping the video industry. Our

perspective reflects our experience with players across the

ecosystem and makes use of Accenture’s primary industry surveys.

Our series aims to help all the players in this rapidly evolving space

to accelerate their journey as high performance businesses.

To learn more, please visit www.accenture.com/pulseofmedia

ContactSef Tuma

Chief Strategy Officer

Accenture Digital Video

[email protected]

[email protected]

http://www.accenture.com/pulseofmedia

mailto:[email protected]

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