FUTURE OF MEDIA & ENTERTAINMENT 15 03 - Dalet
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INDEPENDENT PUBLICATION BY RACONTEUR.NET #0520 16 / 05 / 2018
FUTURE OF MEDIA
& ENTERTAINMENT
03 FIGHTING TO CONTROL
QUALITY CONTENT 13 BREAKING THE MOULD
OF ENDEMIC ABUSE 15 CHINA’S BIG BID TO
RIVAL HOLLYWOOD
152%
Growth rates of major media and entertainment sectors
F U T U RE
Compound annual growth rate minus GDP growth, 2016 to 2021 Average daily time spent watching TV
Survey of US public; includes time simultaneously consuming
other media (in minutes)
Online video +6% jump in the estimated size of the
global e-sports market between
Online advertising +4.3 % 2017 and 2021, from $0.66 billion
It's undeniable that TV viewership is
to $1.65 billion
Video gaming +2.7 % Newzoo 2018
falling, but don’t count on the death 245
of the small screen just yet. The
Out-of-home advertising -1.7% Traditional sectors
average daily time spent watching TV 2016
is expected to drop by almost half an
Music -2% such as print, TV and hour by 2020, compared with 2016.
radio are expected to Yet, despite viewers increasingly using
TV advertising -2.8 % weaken in the coming another device while watching TV, the
years, as online video, average household still watches close 238
-3.4 %
26.3 m
Radio internet advertising to four hours of TV a day
and gaming become 2017
Books -4.5 % the engines powering
From a surge in popularity of virtual reality to downloading entire the media and
Magazines -6% entertainment 219
films in seconds via 5G, the media and entertainment industry will industry estimated virtual reality headset
Newspapers -8.3 % shipments in 2022, up from 2020
be unrecognisable in years to come
eMarketer 2018 100,000 in 2016
IDC 2018
230
Average daily time spent watching digital video 222 2018
Minutes spent Share of total time eMarketer 2018 2019
Future use of social media marketing
The march of video How marketers are planning to change their strategies in the future
18.5% 19.5 % 20.6 % 21.5% 22.1% is set to continue
and is set to account Increase Stay the same Decrease No plans to use
650 m
for almost a quarter
of all digital media
0% 20% 40% 60% 80% 100%
consumption by
2020. In fact, by TV viewers turning to Facebook during ad breaks
2021 82 per cent Facebook Study of one million US Facebook users who indicated they were watching the
of all internet predicted global season premiere of a popular cable TV programme
traffic will be video, subscribers to over-the-
YouTube Ad break During programme Pre/post programme
according to Cisco, top (OTT) services such as
up from 73 per cent Netflix and Amazon Prime Instagram
49.5 54.3 58.7 62.5 65.3 in 2016 by 2021, up from 401
million in 2017 and 290 Twitter 300
million in 2016
2016 2017 2018 2019 2020 Pinterest
eMarketer 2018 IHS Markit 2018
250
Viewers active on Facebook (k)
Snapchat
Social Media Examiner 2017
200
150
100
Global music downloads and music streaming revenue ($bn)
Digital music-downloading revenue Digital music-streaming revenue 50
0
Minutes Facebook 2017
20 Industry players have
long lamented that the
paid-for-subscription
15 model will only go so far
given the myriad of free
options to listen to music
10 online and companies
such as Spotify will
0.001
have to think on their
5 toes to grab part of the
still-substantial non- secs
subscription market
(one millisecond) expected 5G latency – the time it
0
takes a network to respond to a request – compared
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 with 15 to 60 milliseconds on 4G and 120 milliseconds
PwC/Ovum 2017
on 3G. This will be pivotable over the next few years,
with the influx of 4K and 8K movie downloads, high-
resolution virtual reality and ultra-high-definition
game streaming from cloud servers
01 FUTURE OF MEDIA & ENTERTAINMENT RACONTEUR.NET 07
Commercial feature
Redefining audience
Agile media enterprise cquired programming
Internet
companies
Traditional media
companies
Connected
experiences with evolutive
audiences
$10.2bn
fu l Bu
ss sin
$8bn
ce es
uc s
media platforms
S
es
Collaborative Data-driven $8bn
production operations
$7.8bn
$6.3bn
Federated
Seismic market shifts are drastically altering the media and entertainment content
access
$5.4bn
landscape as viewers, craving fresh content that engages in a more immersive, $4.5bn
T hin
Adap
increasingly personalised way, tune in via ever-evolving devices and channels
k
t a ti
$4.2bn
on
N
$2.5bn
Netfl ix
ew media and entertainment Advances in technology, notably artifi- The Dalet Galaxy platform federates spent more money
players are rising and scal- cial intelligence (AI) and cloud, will help $2.2bn
and streamlines the content chain by on non-sports content
ing rapidly, disrupting entire forge new paradigms, and power busi- managing assets, metadata, workflows Integration Flexible than all internet companies
framework C o n tin u o u s workflows and many traditional media $1bn
market segments. Agile on-de- ness and operational models that were and processes across all production fi rms in 2017, investing more
mand streaming services, such as Netflix not previously viable. Quickly embracing systems and distribution systems. than $6 billion on 34 original
and Red Bull TV, bring a data-driven new technologies is imperative. The company recently introduced
Dalet
movies and countless TV $1bn
and direct-to-consumer approach that “The building blocks remain the same: Dalet Media Cortex, a framework that shows. This is expected
allows them to respond faster and better content, operations and audiences. But connects and orchestrates AI and and failing faster,” says Mr Elnecave. continuously, connects directly with its to rise to around $8 $1bn
billion in 2018
to audience expectations. Their innova- everything that binds them and any- machine-learning models at every level “The cloud offers this financial para- audiences, and offers them new for-
tive offers create entire new markets and thing in between is being reshuffled. of the enterprise content supply chain digm. New products, services and con- mats and experiences. $1bn
consumption models. The ability to react faster and adapt and media operations. tent formats can be easily trialed with For others outside the media industry,
MoffettNathanson/The Wall Street Journal 2018
Social media titans, such as continuously to market shifts is becom- “Designed specifically to bring the limited investment, and immediately it will also soon be necessary, predicts Mr
Facebook, YouTube and Twitter, boast ing critical,” says Mr Elnecave. best value from AI to media busi- scaled if successful.” Elnecave. “Until now Dalet has been ded-
advanced technology platforms and “Proactive, continuous business nesses, this framework enables In 2018, an agile media enterprise icated to professional media producers
massive financial resources. They are transformation and faster adapta- key AI-infused functions, such as requires a platform, data strategy and and distributors as customers, but we ay be able to Trends of VICE, BuzzFeed and Complex
also actively engaging in ambitious tion is key to succeed in today’s com- automatic content indexing, topic comprehensive operations manage- are starting to see a new convergence s streaming shaping TV Media, young media entrepreneurs
content strategies. The potency and petitive environment, and to avoid extraction and content discovery, ment. When combined this enables the on the horizon,” he says. “Large corpo- n. To midsize in OTT and video on demand can
reach of social media, with its wealth being disrupted in an age of relentless recommendation optimisation and organisation to connect better with its rations, government agencies, interna- sters, includ- now reach, build and monetise large
of data, ought to be leveraged. Social innovation. This starts with a strate- predictive analytics,” he explains. audience, monitoring and describing tional and educational organisations, as ervice broad- audiences directly.
channels present a unique opportu- gic investment in an open, agile tech- “Ultimately it allows our customers to them better, and personalise the view- well as every entity that needs to manage C, this head- The third driver is TV has been
nity for media players to further their nology platform with core workflow augment team workflows and collabo- er’s experience by leveraging data. media at scale ends up requiring a com- of content somewhat late to the party with
reach, connect with new audiences, orchestration capabilities that enables ration, further empower top creatives “New forms of content, generated plex and integrated media supply chain epresents M&A data. That’s set to change. It’s well
deliver complementary experiences, them to build a cohesive and agile digi- and editors, automate more complex with efficient multiplatform produc- – and a platform like ours to power their . BBC direc- OTT known that Netflix, while closely
and gather precious data and analytics. tal media supply chain.” chains of processes, boost content tions and designed for cross-channel, next generation of storytelling and con- s already Data guarding its own data, uses it to
“This is a new set of complex, and performance and recommendation, complementary experiences, drive tent operations.” roduction Peak TV drive personalised recommen-
changing, rules for the media indus- and optimise provisioning with predic- better engagement,” says Mr Elnecave. Dalet helps a growing number of e from the dations. Deploying data to hone
try,” says Arnaud Elnecave, vice pres- tion to lower total costs of operations.” “The ability to efficiently localise, leading media companies define, plan nd Apple, commissioning, promotion and
ident of marketing at Dalet Digital
Media Systems, a leading technology
A specialist platform such as Dalet also fully supports Amazon customise and refine the content to
effectively align it with the audience’s
and execute their strategic transfor-
mations. Most recent examples include
hortfall.
, commer-
even, perhaps, the creative pro-
cess itself is certain to be adopted
Web Services, so customers can lev-
and service provider that offers a Dalet’s is vital for business erage cloud computing and storage expectations is key. Personalised and Euronews, which revamped their entire ady team- across the industry.
leaders striving to build
media workflow platform with more for more flexibility, dynamic scaling more subtle digital advertising, such as operations to enable a new generation e advertis- A fourth trend is that we’ve entered
than 70,000 users, including BBC, Fox and seamless collaboration across dynamic, targeted product placement, of content customisation and adap- e rationale the age of “peak TV”. A record 487
Networks Group and NBCUniversal, a truly agile, data-driven multiple locations. is only a matter of quarters away.”
Media organisations can redefine
tation for multicultural audiences,
and CNNMoney Switzerland, which
etween scripted shows aired in the US mar-
powers 900 customer sites and thou- “Businesses need to adapt faster, and nce’s TF1, ket last year, while producers have
sands of channels. media organisation this is often achieved by trying more their business by using that data, be it launched a premium multiplatform d Germany’s gone from selling to a handful of
for advertising, subscriptions, content brand in a matter of weeks, supporting potential buyers to today’s prolifer-
licensing or other forms of revenues. an aggressive time-to-market require- ng’ will ation of channels, streaming plat-
Dalet, with almost 100 third-party tech ment without compromising on quality. cording to forms and services.
50%
Ad revenue is shifting across video distribution channels partners in its ecosystem, has opened “Time is of the essence,” Mr Elnecave dults will As the battle for attention intensi-
$billions CAGR (%) up the digital media supply chain. This concludes. “For the organisations that r cable, sat- fies, telcos, corporates, tech giants
100 2010-2016 2016-2020 enables and encourages clients to take adapt and reinvent themselves fast he end of and upstarts are all jockeying for
advantage of the latest technologies as enough, there is a world of opportu- r cent from position, resulting in an alpha-
of adults aged 22 to 45 87 Overall 4 4 soon as they become available, increase nities in the fast-shifting media land- bet soup of distribution and busi-
didn’t watch any broadcast collaboration, build competitive advan- scape. For those that don’t, everything d territo- ness models. With viewers increas-
or cable TV in 2017 80 75 tages and operate more dynamically. will keep becoming more of a threat. ortunities ingly voting with their remotes, the
19
7X
Non-TV video 35 30 Further, the Dalet platform lever- And the longer it takes to execute on e, disrup- industry’s Game of Thrones moment
7
2 ages efficient, component-based the next iteration, the less revenue n the wake is far from over yet.
5 workflows, so content does not have they will have from the legacy business
59 1
60 0 16 Non-linear TV 35 30 to be rendered at every stage of its to fund the next ambitions.”
increase in global mobile data 15 life cycle. For media organisations,
traffic between 2016 and 2021 15 this approach significantly speeds up Going further please log on to
Broadcast 1 -2
Study by the marketing agency Hearts & Science networks processes, facilitates complex and Euronews customer story at
40 20 (national) mass content volume workflows, such www.dalet.com/customer-stories/
19
18 as international versioning and multi- euronews and CNNMoney Switzerland
Broadcast TV 1 -1
platform content distribution, opti- customer story at
82%
stations (national
and local spot) mises operating costs and enables www.dalet.com/customer-stories/
20 better collaboration. This will ulti- cnnmoney-switzerland
26 24 -2
Cable networks 4 mately reduce the industry’s overall or Dalet at www.dalet.com
21 (national)
of all consumer internet traffic storage and compute footprint, which
will be from IP video by 2021, is a good thing for the planet.
4 5 5 0
up from 73 per cent in 2016 Cable multiple- 5 Clearly, a specialist platform such as
2010 2016 2020 system operators Dalet’s is vital for business leaders striv-
(national and
Cisco BCG analysis
local spots) ing to build a truly agile, data-driven
media organisation that innovates
FUTURE OF MEDIA & ENTERTAINMENT 02
OPINION COLUMN
‘Viewers have more
control than ever
before in the way
they consume and
create content’
W
e don’t have to cast our complex workflows needed to
minds back very far to deliver content to such a wide range
recall a time when, if of devices and platforms.
you didn’t like what But the world of broadcast and
you were watching on television, media isn’t the only industry deal-
you had two choices: turn it over or ing with the impact of FAANG.
turn it off. We have seen a growing backlash
Viewing used to be by appoint- around the world, from govern-
ment only, but we now live in an ments threatening regulation and
era of almost endless possibilities. intervention in response to allega-
We are all familiar with the many tions of impropriety related to the
ways in which TV and films can be handling of user data, to increas-
viewed: online catch-up sites allow ingly cautious brands that are anx-
us to stream shows we may have ious about the type of content their
missed, while subscription services ads appear next to. All of which has
serve up thousands of hours of con- contributed to some of these digi-
tent made up by increasing amounts tal giants’ efforts to build trust with
of original commissions. their users.
Such changes illustrate a shift in And while the political climate
the balance of power. Viewers have may have undermined some news
more control than ever before in the organisations, traditional broad-
way they consume and create con- casters still retain the trust of mil-
tent. Anyone with a smartphone lions. Despite fragmented viewing
now has the ability to broadcast to and its impact on viewing figures,
the world, enabling a generation of broadcast news remains an impor-
YouTube stars who have millions of tant source of information for
subscribers. Such large followings many. Broadcast brands are trusted
have led broadcasters to beat a path because they are built on solid jour-
to their door, eager to tap into their nalism, ethics and principles, strin-
ability to reach that elusive group of gent editorial standards and crea-
16 to 24 year olds who have a thirst tive excellence.
for online content. It is for this reason that we
This disruption and transfor- have seen the likes of Apple and
mation of the industry has been Facebook recruit executives from
prompted by a handful of rela- broadcasters to lead their content
tively new, but powerful, digital strategies. They know that compel-
giants, most notably Facebook, ling, quality content attracts and
Apple, Amazon, Netflix and retains customers.
Google, that were recently given All this is contributing to more
a collective title, the rather omi- choice than ever before for viewers.
nous acronym FAANG. The ways in which we capture, craft,
Such predatory imagery is in deliver and consume programmes
keeping with the concerns of and movies may change, and the
some sectors of the industry that technology-fuelled and disruptive
see them devouring advertising rapid pace of change will no doubt
spend and encroaching on what continue, but the one constant will
had always been incumbent broad- be the demand for informative and
caster territory. inspirational content.
This upheaval has created uncer-
tainty, with broadcasters scram-
bling to consolidate or amass the
scale needed to compete with the
likes of Netflix, which is availa-
ble in more than 190 countries.
Most notably, we have seen Disney
and latterly Comcast, the tele-
coms conglomerate and parent
of NBCUniversal, enter a bidding
war over pay TV giant Sky. Further
mergers and acquisitions are
expected as the battle for content
and customers intensifies.
Broadcasters are also contend-
ing with new business models in
response to changing viewing hab- Michael Crimp
its and eyeballs moving online, and Chief executive
they are grappling with increasingly International Broadcasting Convention
03 RACONTEUR.NET
CONTENT
FUTURE OF MEDIA
& ENTERTAINMENT
Fighting to control
Distributed in
quality content
Published in
association with
Media and technology heavyweights are slugging it out in
a fight for content which could see the biggest hitters win
2018
CONTRIBUTORS ADAM FORREST – publishers have an opportunity
Guy Corbishley/Alamy Live News
P
to begin bundling content too.
ace of change in the media Offering readers access to multiple
NICK EASEN OLIVER PICKUP environment can be diso- websites through a single monthly
Award-winning Award-winning rientating. Just when the fee would be one way of winning
freelance journalist and journalist, ghostwriter landscape seems to be sta- over cash-conscious readers.
broadcaster, he produces and media consultant,
bilising, another new player, new Fleet-footed companies have to
for BBC World News he specialises in
and writes on business, technology, business, technology or new consumer habit be imaginative when it comes to
economics, science, sport and culture. comes along and shifts the contours forging alliances. Once unlikely
technology and travel. once again. partnerships have given local
Much of the disruption is being players much wider international
ADAM FORREST JAMES SILVER driven by one overwhelming force: reach. BBC Studios has formed
Award-winning freelance Specialist writer on the fight to control content. Owning co-production arrangements with
journalist, he writes for technology, media and
content means access to audiences Netflix and AMC. NBCUniversal
The Guardian, VICE, business, he contributes
Forbes and BBC News to WIRED, The Observer and everyone wants in on the action. and ESPN have agreed to make live
Magazine. and The Guardian, Traditional media and entertain- video available on Twitter. VICE,
among others. ment operators are contending having started life as a print mag-
with telco companies, social media azine in Canada, is now producing
NICHI HODGSON SHARON platforms and tech giants such as video content for local broadcast-
Author, broadcaster and THIRUCHELVAM Amazon and Google attempting to ers around the world.
journalist specialising Writer specialising in muscle in and gain ground. A potential Sky deal These synergies show the media
in civil liberties, gender culture and innovation, could strengthen
and equality issues, her
With the battle reshaping every Comcast’s presence company of the future has to be
she contributes to The
latest book is The Curious Independent, i-D, VICE aspect of the industry and many of in sports broadcasting willing to experiment and think
History of Dating. and Forbes. the leading players no longer sat- strategically about every aspect of
isfied performing their traditional (£733 million) to screen original the big fish eat the smaller ones. the industry. Successful companies
roles, what strange new structures content over the year ahead. Local broadcasters are well aware will also have to keep the changing
and partnerships might we see in Competition from these global of the head start the tech giants demands of the audience in mind.
the years ahead? What will the suc- direct-to-consumer platforms help have when it comes to data gath- Consumers have shown they want
cessful media company of the future explain why US cable giant Comcast ering and targeting different audi- choice and agility is required to
look like? recently launched a £22-billion bid ences with tailored ads. It’s why give them the content they want
One of the most powerful current for Sky, believing the European traditional broadcasting rivals whenever they want it on a wide
trends is the convergence of entities broadcaster’s content will expand are now collaborating on targeted range of devices.
from formerly separate spheres: the its scope internationally. advertising solutions both for tra- Part of the challenge is making
distributors and the creators of con- Telco company dominance is far ditional TV and video on demand, sure content, formats and advertis-
tent. If the planned merger of AT&T from inevitable, however. Disney or VoD, platforms. ing are suitably personalised for the
and Time Warner is sanctioned by remains keen to purchase 21st Collaboration between rivals may individual, while making sure the
Publishing manager Head of production a US judge it would give the mobile Century Fox’s key assets, including hold the key for traditional publish- whole experience is delivered with a
Elaine Zhao Justyna O'Connell network, which already has a stake Rupert Murdoch’s 39 per cent stake ers too. Newspapers and magazines look, feel and tone that fits consist-
in pay TV through its subsidiary in Sky, and is thought to be particu- are still struggling to monetise their ently with the company brand.
Production editor Digital content executive
Benjamin Chiou DirecTV, a grip on a stable of news larly eager to get its hands on Sky’s content because of the aggregation Audiences develop relationships
Elise Ngobi
and entertainment brands that streaming and on-demand services. of their stories and absorption of so of trust and affection with their
Managing editor Design includes CNN, HBO, Warner Bros Disney’s ambition demonstrates much digital advertising spend by most cherished media and enter-
Peter Archer Grant Chapman and DC Comics. what is possible for some of the larg- Facebook and Google. tainment companies. It’s a much
Kellie Jerrard Just as broadcasters and OTT pro- more delicate and intimate pro-
“The telco operators have been est legacy media companies, which
Samuele Motta
watching the dramatic rise in is the ability to capture popular dis- viders are joining forces to offer cess than the tech giants have real-
Head of design video data moving across their tribution platforms. subscription bundles – Sky and ised, as the Facebook-Cambridge
Tim Whitlock networks and they desperately The emerging media ecosystem Netfl ix recently struck a deal to Analytica data scandal has so
want a meaningful stake in it,” does not have to be one in which include Netfl ix in a Sky package clearly demonstrated.
explains Ed Barton, chief analyst “Technology-oriented compa-
at consultancy firm Ovum. “In nies tend to think of audiences as
many countries there is a recog- M&A ambitions have picked up users and they are not the same,”
nition that regulatory constraints Percentage of media and entertainment companies expecting to pursue mergers says Mr Barton. “It’s important
Although this publication is funded through advertising and have to be somewhat loosened to and acquisitions in the next 12 months; biannual survey to understand what they’re com-
sponsorship, all editorial is without bias and sponsored features enable traditional distributors to fortable with in terms of respect
are clearly labelled. For an upcoming schedule, partnership compete effectively against new 60% for their data and their privacy
inquiries or feedback, please call +44 (0)20 3877 3800 or digital platforms.” online. You mess around with that
email info@raconteur.net 50%
Pay TV operators are particularly Average at your peril.”
Raconteur is a leading publisher of special-interest content and
worried about the threat posed by As for the creative types, it’s a
research. Its publications and articles cover a wide range of topics, 40%
the so-called over the top (OTT) good time to be pitching. There
including business, finance, sustainability, healthcare, lifestyle and
technology. Raconteur special reports are published exclusively in internet providers such as Netflix are more outlets and huge demand
30%
The Times and The Sunday Times as well as online at raconteur.net and the noisy entry into program- for new material. “It’s going to be
The information contained in this publication has been obtained ming made by Facebook, Apple, increasingly important to have
20%
from sources the Proprietors believe to be correct. However, Google and Amazon. The Silicon your own content and make sure
no legal liability can be accepted for any errors. No part of this Valley behemoths are spend- it’s really good content,” con-
publication may be reproduced without the prior consent of the 10%
ing huge sums to offer their users cludes Jesse Whittock, insight
Publisher. © Raconteur Media
exclusive shows. Last August, The 0% editor at Broadcast magazine.
Wall Street Journal revealed that 2013 2014 2015 2016 2017 “Good content guarantees audi-
@raconteur /raconteur.net @raconteur_london Facebook is committing $1 billion EY 2017 ences on any platform.”
raconteur.net /media-entertainment-2018
FUTURE OF MEDIA & ENTERTAINMENT 04 RACONTEUR.NET 05
Commercial feature
DEAL DRIVERS
ompanies must their data is used, sometimes to
manipulate them. Techniques like
autoplay which is used by Netflix, Data is widely
a with care
Enhance existing product and service portfolio 43% but not BBC iPlayer, for exam-
regarded as the key
ple, are designed to encourage
immediate gratification and keep to unlock better user
Gain market share in existing segment/geography 25% viewers hooked.
Reed Hastings, chief execu-
experiences
tive of Netflix, quips that his
17%
Enhance digital capabilities
mproving customer experience are based company’s biggest competitor is
sleep. Alarmingly, he has a point.
Gain exposure to new geographical markets 14%
h its inherent risks to privacy According to Ofcom, 32 per cent of
adults and 31 per cent of teenagers companies can dominate content
have sacrificed sleep for stream- creation and delivery networks
Transform product and service portfolio 11% Rahul Gautam Will Fisher
ing binges. will possess an even more com-
There are alternative stream- plete data picture from which to
UK and Ireland technology Global media and entertainment
ing models that don’t rely on data deliver hyper-targeted advertising
media and entertainment, leader, Transaction Advisory
Improve customer engagement 7% telecommunications leader, EY Services, EY
collection, profiling or mass per- and content. To this end, Facebook
sonalisation, but by their very is licensing music and music video
nature their audiences are niche. hosting, and Apple is branching
Integrate/extend value-chain position 5% Content brands ought to know this, but Scale, for example, is easy to target, One such, Mubi, is a film-stream- out into Amazon territory with
very few excel.” but hard to achieve. “We see M&A as ing website that presents a roll- original TV programming.
Constant focus is needed because a great way to build scale fast,” says ing selection of 30 critically Will this scramble for data ena-
Drive business efficiencies and cost control 3% expectations are always rising. If a cus- Will Fisher, EY’s Transactions Advisory acclaimed films that are each ble a better user experience? One
tomer has been watching a TV show Services global media and entertain- available for 30 days, with one of the enormous successes of the
on a tablet, they expect to be able to ment leader. “Over the past four years, leaving and joining the count- Netflix model has been its focus
Monetise and divest non-core assets 0% switch to a laptop, smartphone or the largest driver of M&A has been to down every day. Personal curation on high-quality content with-
other device and continue where they enhance the product or service port- tops algorithmic personalisation, out any ads. Netflix, which says
left off. It is simply expected. Yet not all folio. And more than two thirds of deals with the site’s selection chosen it is spending $8 billion on con-
Other 3%
content providers offer this. have been to gain market share or build by film critics and tastemakers to tent next year, is raising the bar
The user experience (UX) must be opti- in new geographies.” complement new cinema releases throughout the industry and forc-
mised for the customer. Multi-variate Raising finance is a part of this drive. and topical events. ing its competitors to maintain a
testing can refine the UX over time, but Capital can be used for M&A, to fund In the European Union, similar commitment to quality.
AUDIENCE VALUE MONETISATION IS M&A ACTIVITY SET sometimes bold decisions need to be new content, to invest in R&D or mar- the incoming General Data However, some fear consolida-
IS SHIFTING INCREASINGLY COMPLEX TO CONTINUE made to impress users. A survey by EY keting. Divestments are a popular Protection Regulation (GDPR) tion, paired with the repeal of net
26% 38% 87%
revealed 38 per cent of audiences are method of raising cash. In 2018, 87 per could spell the end of profiling neutrality in the United States,
much more receptive to advertising on cent of media and entertainment exec- and algorithmic decision-mak- which critics fear will choke off
broadcast TV than on streaming ser ser- utives are looking to divestments over ing in the EU entertainment smaller content providers, could
vices and 16 per cent of households the next two years. That is a significant industry. “Under the GDPR, the compromise content standards
would actually pay a premium to stream increase on just 33 per cent in in 2017. customer has a right to object to and consumer choice long term.
catch-up TV without adverts. Only The three qualities will apply to each automated decision-making that Either way, if personal data is
of 18 to 34 year olds of audiences are much more receptive of media and brands with a profound understanding company in a different way. Even the involves their data. This could to be the bedrock of entertain-
believe the best content to advertising on broadcast TV than entertainment executives of the preferences of their customers idea of “winning” will vary. “You can only affect profiling and personali- ment media, ethical protocols
is on streaming services on streaming services and 16 per cent in 2018 are looking to can get the big calls right. define winning when you know your core sation entertainment features, should be established for its use.
and not traditional of households would actually pay divestments over the Third is a talent for innovating in proposition,” says Mr Fisher. “Do you such as the recommendation Entertainment has the potential
broadcasters a premium to stream catch-up TV next two years, up from delivery, not merely with the content want to maximise viewer numbers to of similar content and notices to become evermore enthralling
without adverts just 33 per cent in 2017 itself. For example, the boom in smart convert that to ad revenue? Is content a about what other viewers saw or and immersive as technologies
Global Media M&A Deal Drivers 2014-2017 speakers in the home offer brands a way to sell something else, such as sub- bought,” says Mr Spacek. such as augmented reality, arti-
new route to audiences. Agile content scription to an affiliated service? It’s a Across the Atlantic, the quest ficial intelligence, robotic sen-
owners have developed apps to inte- fundamental debate you need to have.” for dominance of data and eye- sors, the internet of things, vir-
grate with these smart speakers. Now In the heat of battle, brands often balls has sparked a trend for mar- tual reality, voice interfaces and
Who will win the
they are able to reach tens of millions lose sight of their core objective. For ket consolidation. Among the 4DX cinema effects augmentation
of new consumers through an inno- example, social media is a hot topic FAANGs (Facebook, Amazon, are commercialised. While televi-
vative and brand-enhancing medium. and brands are investing in building fol- ,” says Kevin Westcott, vice shows people watch on Netflix are Apple, Netflix and Alphabet’s sion isn’t called the “idiot box” for
Early movers stand to be dispropor- lowings on the main platforms. But do man of media and entertain- discovered through the platform’s Google) the race is on to own nothing, it is by no means as ubiq-
battle for content?
tionately rewarded. social media numbers contribute to the t at Deloitte. recommendation system. Spotify, the entire customer experience, uitous or addictive as entertain-
Creative thinking around delivery bottom line? Consumers are often being a is widely regarded as the the popular music streaming plat- says Mr. Westcott. Whichever ment technologies to come.
means experimenting with new tech- pushed to a third-party site, making o unlock better user experi- form, broadens its listeners’ musi-
nologies. Virtual reality (VR) is an emerg- monetisation hard or impossible. . Having given consumers cal horizon at the same time as
ing field in this regard. Sports-betting “The market will support different ower to choose what they narrowing the near-limitless lis-
Consumer preference for sharing personal data
There are three qualities brands need to thrive, says EY companies have toyed with VR viewing
experiences. Now you can see what the
business models,” Mr Gautam con-
cludes. “But it is clear that the winners
o watch and when, stream-
mpanies analyse how long
tening options available to them
by sending a personalised weekly Percentage of those who would prefer to pay for this service so they do not have to share any data
jockeys see as they leap over the penul- possess common qualities. Scale, a focus y watch for, what devices they playlist of 30 new songs based on
Percentage of those who would prefer to share data to receive this service for free
timate fence at Aintree. Is it a game- on the customer, and product and ser ser- , where they are watching, the individual’s listening history.
T
changer? It’s too early to tell, but the vice innovation are the three key capabil- hey watch next and so on. But entertainment media com-
he content industry is wit- UK and Ireland. “The market will support artists and consumers who need some- best content brands have a track record ities. It may shock content creators and s growing volume of data panies need to be more com- 28% 43%
nessing disruption on a grand different business models, but the win- thing out of the ordinary. of exploring new delivery channels. distributors, but without them, you can he inferences made from pliant with consumers’ privacy Email services
scale. Competition between ners will exhibit common characteris- Size translates to the ability to invest Also there is the opportunity to have the best content and still lose.” ate a picture of viewing concerns. “There are many con-
brands for users cuts across tics. Whether you are in video streaming, in the product. For example, mov- transform traditionally relatively niche ours, tastes and atti- sumers that seek personal enter-
platforms, across borders, and affects news, music, telecoms or the movies, the ie-streaming brands are able to allo- sports, such as cycling or horse racing. . Netflix, which says it has tainment, but a lot of personalisa- 35% 26%
all demographics. principles are a blueprint for growth.” cate huge budgets to bespoke pro- Mobile camera and internet of things For advice on building a content d 250 million active users tion features are not being done in TV/movie streaming
TV networks are competing with The first trait is scale. Simply being jects. Their size means they even technology can now capture moments, strategy please contact Rahul Gautam, wide, divides users into a transparent manner,” says Dirk
on-demand streaming. Newspapers larger than rivals confers advantages out-compete national broadcasters feeling and facts from sports which EY’s UK and Ireland technology, media e groups” of which there are Spacek, managing associate at law 24% 34%
are fighting for readers with social net- in a number of ways. Content creators in terms of new content spend. Scale were once viewed statically. This not and telecommunications leader l thousand. firm Walder Wyss. Messaging apps
works and viral websites. And new plat- want to broadcast their artistry to the becomes a virtuous circle, in which the only enhances the customer experi- RGautam@uk.ey.com or Will Fisher, n a fragmented market, deliv- Indeed, Deloitte reports that
forms are emerging. largest number of fans, so they want to rich get richer. Smaller content owners ence, but also the opportunity to add global media and entertainment g high-quality content is 69 per cent of consumers believe
How can content brands survive and work with the largest distributors. They are squeezed out. commercial value by providing more leader, EY Transaction Advisory nough. Media companies companies aren’t doing enough to 22% 33%
thrive in this chaotic landscape? EY want the benefit of aggregated audi- The second quality is a laser focus on real-estate space for advertisement or Services wfisher@uk.ey.com o win the recommendation protect their data, and 73 per cent Social networks
is working with the most innovative ences and the ability to access these the customer. “Standards are now sky brand enhancement. . Those chasing economies would be more comfortable shar-
global content producers and distrib- audiences efficiently. high,” says Mr Gautam. “Consumers Scale, focus on the customer and le and the benefits of net- ing their data if they had some vis- 27% 23%
utors to identify the traits of success Consumers have a similar outlook. They expect a seamless, frictionless and innovation in delivery: these three ffects will use algorithms ibility and control. Music streaming
across all verticals. want to access the widest variety of con- personalised experience across all qualities are found in all leading con- d machine-learning to per- Tristan Harris, a design eth-
“We believe the lessons are universal,” tent, so they perceive the top-ranking devices. If it takes 30 seconds to log on, tent brands. Naturally, the mission for hat consumers will want to icist and former product man-
says Rahul Gautam, technology, media brands as the default choice. Niche play- forget it. If payment is troublesome, challenger brands is to improve their h or listen to next. ager at Facebook, believes people 25% 24%
and telecommunications leader at EY, ers can prosper, but usually by picking up you can expect users to abandon you. performance in each category. e than 80 per cent of the TV should be concerned about how Online news subscriptions DMA 2017
04 FUTURE OF MEDIA & ENTERTAINMENT 05 RACONTEUR.NET
Commercial feature DATA PROTECTION
DEAL DRIVERS
Media companies must their data is used, sometimes to
manipulate them. Techniques like
autoplay which is used by Netflix, Data is widely
treat data with care
Enhance existing product and service portfolio 43% but not BBC iPlayer, for exam-
regarded as the key
ple, are designed to encourage
immediate gratification and keep to unlock better user
Gain market share in existing segment/geography 25% viewers hooked.
Reed Hastings, chief execu-
experiences
tive of Netflix, quips that his
17%
Enhance digital capabilities
Targeting audiences and improving customer experience are based company’s biggest competitor is
sleep. Alarmingly, he has a point.
Gain exposure to new geographical markets 14%
on using personal data with its inherent risks to privacy According to Ofcom, 32 per cent of
adults and 31 per cent of teenagers companies can dominate content
have sacrificed sleep for stream- creation and delivery networks
11% ing binges. will possess an even more com-
Photo by Charles Deluvio on Unsplash
Transform product and service portfolio Rahul Gautam
There are alternative stream- plete data picture from which to
UK and Ireland technology
ing models that don’t rely on data deliver hyper-targeted advertising
media and entertainment,
Improve customer engagement 7% telecommunications leader,
collection, profiling or mass per- and content. To this end, Facebook
sonalisation, but by their very is licensing music and music video
nature their audiences are niche. hosting, and Apple is branching
Integrate/extend value-chain position 5% Content brands ought to know t One such, Mubi, is a film-stream- out into Amazon territory with
very few excel.” ing website that presents a roll- original TV programming.
Constant focus is needed b ing selection of 30 critically Will this scramble for data ena-
Drive business efficiencies and cost control 3% expectations are always rising. I acclaimed films that are each ble a better user experience? One
tomer has been watching a T available for 30 days, with one of the enormous successes of the
on a tablet, they expect to be leaving and joining the count- Netflix model has been its focus
Monetise and divest non-core assets 0% switch to a laptop, smartph down every day. Personal curation on high-quality content with-
other device and continue whe tops algorithmic personalisation, out any ads. Netflix, which says
left off. It is simply expected. Ye with the site’s selection chosen it is spending $8 billion on con-
Other 3%
content providers offer this. by film critics and tastemakers to tent next year, is raising the bar
The user experience (UX) must b complement new cinema releases throughout the industry and forc-
mised for the customer. Multi- and topical events. ing its competitors to maintain a
testing can refine the UX over ti In the European Union, similar commitment to quality.
AUDIENCE VALUE MONETISATION IS M&A ACTIVITY SET sometimes bold decisions need the incoming General Data However, some fear consolida-
IS SHIFTING INCREASINGLY COMPLEX TO CONTINUE made to impress users. A surve Protection Regulation (GDPR) tion, paired with the repeal of net
26% 38% 87%
revealed 38 per cent of audien could spell the end of profiling neutrality in the United States,
much more receptive to advert and algorithmic decision-mak- which critics fear will choke off
broadcast TV than on streaming
streami se - ing in the EU entertainment smaller content providers, could
vices and 16 per cent of hou industry. “Under the GDPR, the compromise content standards
would actually pay a premium to customer has a right to object to and consumer choice long term.
catch-up TV without adverts automated decision-making that Either way, if personal data is
of 18 to 34 year olds of audiences are much more receptive of media and brands with a profound unders involves their data. This could to be the bedrock of entertain-
believe the best content to advertising on broadcast TV than entertainment executives of the preferences of their cus affect profiling and personali- ment media, ethical protocols
is on streaming services on streaming services and 16 per cent in 2018 are looking to can get the big calls right. sation entertainment features, should be established for its use.
and not traditional of households would actually pay divestments over the Third is a talent for innova such as the recommendation Entertainment has the potential
broadcasters a premium to stream catch-up TV next two years, up from delivery, not merely with the co of similar content and notices to become evermore enthralling
without adverts just 33 per cent in 2017 itself. For example, the boom i about what other viewers saw or and immersive as technologies
Global Media M&A Deal Drivers 2014-2017 speakers in the home offer b bought,” says Mr Spacek. such as augmented reality, arti-
new route to audiences. Agile co Across the Atlantic, the quest ficial intelligence, robotic sen-
owners have developed apps to for dominance of data and eye- sors, the internet of things, vir-
grate with these smart speake balls has sparked a trend for mar- tual reality, voice interfaces and
Who will win the
they are able to reach tens of ket consolidation. Among the 4DX cinema effects augmentation
of new consumers through an FAANGs (Facebook, Amazon, are commercialised. While televi-
vative and brand-enhancing me enjoy it,” says Kevin Westcott, vice shows people watch on Netflix are Apple, Netflix and Alphabet’s sion isn’t called the “idiot box” for
Early movers stand to be disp SHARON THIRUCHELVAM chairman of media and entertain- discovered through the platform’s Google) the race is on to own nothing, it is by no means as ubiq-
battle for content? T
tionately rewarded. ment at Deloitte. recommendation system. Spotify, the entire customer experience, uitous or addictive as entertain-
Creative thinking around elevision’s place at the Data is widely regarded as the the popular music streaming plat- says Mr. Westcott. Whichever ment technologies to come.
means experimenting with new heart of mass culture is key to unlock better user experi- form, broadens its listeners’ musi-
nologies. Virtual reality (VR) is an no more. Streaming ser- ences. Having given consumers cal horizon at the same time as
ing field in this regard. Sports- vices provide higher reve- the power to choose what they narrowing the near-limitless lis-
Consumer preference for sharing personal data
There are three qualities brands need to thrive, says EY companies have toyed with VR
experiences. Now you can see w
nues to entertainment companies
than traditional broadcasting and
want to watch and when, stream-
ing companies analyse how long
tening options available to them
by sending a personalised weekly Percentage of those who would prefer to pay for this service so they do not have to share any data
jockeys see as they leap over the p media consumption is growing they watch for, what devices they playlist of 30 new songs based on
Percentage of those who would prefer to share data to receive this service for free
timate fence at Aintree. Is it a on the customer, and product and se - more atomised by the day. People use, where they are watching, the individual’s listening history.
T
changer? It’s too early to tell, formulate their own programming what they watch next and so on. But entertainment media com-
he content industry is wit- UK and Ireland. “The market will support artists and consumers who need some- best content brands have a track schedules, cherry-picking pro- This growing volume of data panies need to be more com- 28% 43%
nessing disruption on a grand different business models, but the win- thing out of the ordinary. of exploring new delivery channe grammes from an array of provid- and the inferences made from pliant with consumers’ privacy Email services
scale. Competition between ners will exhibit common characteris- Size translates to the ability to invest Also there is the opportu ers and watching on a variety of it create a picture of viewing concerns. “There are many con-
brands for users cuts across tics. Whether you are in video streaming, in the product. For example, mov- transform traditionally relativel screens. behaviours, tastes and atti- sumers that seek personal enter-
platforms, across borders, and affects news, music, telecoms or the movies, the ie-streaming brands are able to allo- sports, such as cycling or horse Even when we’re together, we tudes. Netflix, which says it has tainment, but a lot of personalisa- 35% 26%
all demographics. principles are a blueprint for growth.” cate huge budgets to bespoke pro- Mobile camera and internet o are often alone in our own enter- around 250 million active users tion features are not being done in TV/movie streaming
TV networks are competing with The first trait is scale. Simply being jects. Their size means they even technology can now capture mo tainment bubbles; a third of peo- worldwide, divides users into a transparent manner,” says Dirk
on-demand streaming. Newspapers larger than rivals confers advantages out-compete national broadcasters feeling and facts from sports ple in the UK say members of “taste groups” of which there are Spacek, managing associate at law 24% 34%
are fighting for readers with social net- in a number of ways. Content creators in terms of new content spend. Scale were once viewed statically. T their households sit together in several thousand. firm Walder Wyss. Messaging apps
works and viral websites. And new plat- want to broadcast their artistry to the becomes a virtuous circle, in which the only enhances the customer experi- RGautam@uk.ey.com or Will Fisher, the same room watching different In a fragmented market, deliv- Indeed, Deloitte reports that
forms are emerging. largest number of fans, so they want to rich get richer. Smaller content owners ence, but also the opportunity to add global media and entertainment programmes on different devices, ering high-quality content is 69 per cent of consumers believe
How can content brands survive and work with the largest distributors. They are squeezed out. commercial value by providing more leader, EY Transaction Advisory according to Ofcom. not enough. Media companies companies aren’t doing enough to 22% 33%
thrive in this chaotic landscape? EY want the benefit of aggregated audi- The second quality is a laser focus on real-estate space for advertisement or Services wfisher@uk.ey.com With so much competition, media need to win the recommendation protect their data, and 73 per cent Social networks
is working with the most innovative ences and the ability to access these the customer. “Standards are now sky brand enhancement. companies are vying to command game. Those chasing economies would be more comfortable shar-
global content producers and distrib- audiences efficiently. high,” says Mr Gautam. “Consumers Scale, focus on the customer and a limited and in-demand resource: of scale and the benefits of net- ing their data if they had some vis- 27% 23%
utors to identify the traits of success Consumers have a similar outlook. They expect a seamless, frictionless and innovation in delivery: these three consumers’ attention. “Unlike work effects will use algorithms ibility and control. Music streaming
across all verticals. want to access the widest variety of con- personalised experience across all qualities are found in all leading con- the captive audiences of the past, and machine-learning to per- Tristan Harris, a design eth-
“We believe the lessons are universal,” tent, so they perceive the top-ranking devices. If it takes 30 seconds to log on, tent brands. Naturally, the mission for today’s consumers can choose not ceive what consumers will want to icist and former product man-
says Rahul Gautam, technology, media brands as the default choice. Niche play- forget it. If payment is troublesome, challenger brands is to improve their only what type of content they watch or listen to next. ager at Facebook, believes people 25% 24%
and telecommunications leader at EY, ers can prosper, but usually by picking up you can expect users to abandon you. performance in each category. want, but also how and when to More than 80 per cent of the TV should be concerned about how Online news subscriptions DMA 2017
06 FUTURE OF MEDIA & ENTERTAINMENT RACONTEUR.NET 06
Commercial feature TELEVISION
Redefining audience
Agile media enterprise
Connec
experiences with evolutive TV’s Game
audie
Content budgets of major providers
fu l Internet Traditional media
e ss Non-sports programming spend in 2017, including original and acquired programming companies companies
u cc
media platforms
S
of Thrones
Collaborative
production NBCU $10.2bn
Fox $8bn
moment…
Time Warner $8bn
Seismic market shifts are drastically altering the media and entertainment
Disney $7.8bn
landscape as viewers, craving fresh content that engages in a more immersive,
Adap
Netflix $6.3bn
increasingly personalised way, tune in via ever-evolving devices and channels
t a ti
on
Viacom $5.4bn
N
works, television is in an unprece- Amazon $4.5bn
ew media and entertainment
players are rising and scal-
Advances in technology, notably artifi-
cial intelligence (AI) and cloud, will help
The Dalet Galaxy platform federates
and streamlines the content chain by
Amid a fl urry of dented state of flux. This protracted
CBS $4.2bn
ing rapidly, disrupting entire
market segments. Agile on-de-
forge new paradigms, and power busi-
ness and operational models that were
managing assets, metadata, workflows
and processes across all production
Integration
framework
mergers and game of media musical chairs is
being driven by four main forces.
mand streaming services, such as Netflix not previously viable. Quickly embracing systems and distribution systems. acquisitions, First, the traditional TV business Hulu
Netfl ix
$2.5bn
and Red Bull TV, bring a data-driven new technologies is imperative. The company recently introduced model is not so much ailing as in
and direct-to-consumer approach that “The building blocks remain the same: Dalet Media Cortex, a framework that powerful rivalries intensive care: TV advertising is Discovery spent more money
on non-sports content
$2.2bn
predicted to fall behind digital for
allows them to respond faster and better
to audience expectations. Their innova-
content, operations and audiences. But
everything that binds them and any-
connects and orchestrates AI and
machine-learning models at every level
and failing faster,” says Mr El
“The cloud offers this financia
are shaping the the fi rst time this year, according Scripps
than all internet companies
and many traditional media $1bn
future of TV to Dentsu Aegis, while Google and fi rms in 2017, investing more
tive offers create entire new markets and thing in between is being reshuffled. of the enterprise content supply chain digm. New products, services an
than $6 billion on 34 original
consumption models. The ability to react faster and adapt and media operations. tent formats can be easily trial Facebook are carving up an ever-in- AMC movies and countless TV $1bn
Social media titans, such as continuously to market shifts is becom- “Designed specifically to bring the limited investment, and imme creasing share of the pie. shows. This is expected
Facebook, YouTube and Twitter, boast ing critical,” says Mr Elnecave. best value from AI to media busi- scaled if successful.” Second, over the top (OTT), where Apple to rise to around $8 $1bn
content is streamed over the inter- billion in 2018
advanced technology platforms and “Proactive, continuous business nesses, this framework enables In 2018, an agile media ente
massive financial resources. They are transformation and faster adapta- key AI-infused functions, such as requires a platform, data strate JAMES SILVER net, is on the march. In 2014, OTT $1bn
T
Facebook
also actively engaging in ambitious tion is key to succeed in today’s com- automatic content indexing, topic comprehensive operations m accounted for just 10 per cent of
he TV industry is in the grip the total US video industry value MoffettNathanson/The Wall Street Journal 2018
content strategies. The potency and petitive environment, and to avoid extraction and content discovery, ment. When combined this enab
reach of social media, with its wealth being disrupted in an age of relentless recommendation optimisation and organisation to connect better of a series of mega-mergers. capture. Boston Consulting Group
of data, ought to be leveraged. Social innovation. This starts with a strate- predictive analytics,” he explains. audience, monitoring and des Leading the way is AT&T’s predict this will double in 2018, a
channels present a unique opportu- gic investment in an open, agile tech- “Ultimately it allows our customers to them better, and personalise th proposed $85.4-billion figure which represents more than
nity for media players to further their nology platform with core workflow augment team workflows and collabo- er’s experience by leveraging da (£62.5-billion) acquisition of Time $30 billion (£22 billion) in reve- J.P. Morgan analysts that Amazon But while Disney may be able to Trends of VICE, BuzzFeed and Complex
reach, connect with new audiences, orchestration capabilities that enables ration, further empower top creatives “New forms of content, gener Warner, which would turn the tele- nues in the United States alone. spent some $4.5 billion (£3.3 bil- build an audience for its streaming shaping TV Media, young media entrepreneurs
coms giant into a content behemoth, The success of streaming player lion) on original content in 2017, service, few others can. To midsize in OTT and video on demand can
deliver complementary experiences, them to build a cohesive and agile digi- and editors, automate more complex with efficient multiplatform p
with properties ranging from super- Roku also suggests a tipping point while Apple plans to spend about and regional broadcasters, includ- now reach, build and monetise large
and gather precious data and analytics. tal media supply chain.” chains of processes, boost content tions and designed for cross-c
hero franchises to CNN and Harry is on the horizon. In 2015, Roku $1 billion (£733 million) this year. ing renowned public service broad- audiences directly.
“This is a new set of complex, and performance and recommendation, complementary experiences,
Potter to HBO. Although the deal users streamed 5.5 billion hours of So if these forces provide the back- casters such as the BBC, this head- The third driver is TV has been
changing, rules for the media indus- and optimise provisioning with predic- better engagement,” says Mr El
was blocked by the US Department content. By 2016 that number had drop, what impact will they have on long rush to consolidation of content somewhat late to the party with
try,” says Arnaud Elnecave, vice pres- tion to lower total costs of operations.” “The ability to efficiently l
the future TV landscape? and financial fire power represents M&A data. That’s set to change. It’s well
ident of marketing at Dalet Digital
Media Systems, a leading technology
A specialist platform such as Dalet also fully supports Amazon
Web Services, so customers can lev-
customise and refine the con
effectively align it with the aud
of Justice on public interest
grounds, AT&T is challenging the
risen to 9 billion. In the first half
of 2017 alone, users streamed 7 bil- As we close in on the era of “stream- an existential threat. BBC direc- OTT known that Netflix, while closely
and service provider that offers a Dalet’s is vital for business erage cloud computing and storage expectations is key. Personalis move in court. lion hours, representing 61 per cent ing by default”, it’s now clear that tor general Lord Hall has already Data guarding its own data, uses it to
Next is Disney’s blockbuster year-on-year growth. alongside the major tech players, OTT warned that British TV production Peak TV drive personalised recommen-
leaders striving to build
media workflow platform with more for more flexibility, dynamic scaling more subtle digital advertising,
$52.4-billion (£38.3-billion) acqui- Then there’s the irresistible will favour those corporates with the is under serious pressure from the dations. Deploying data to hone
than 70,000 users, including BBC, Fox and seamless collaboration across dynamic, targeted product place
brand clout and content muscle to rise of Netflix, Amazon and Apple, commissioning, promotion and
Networks Group and NBCUniversal, a truly agile, data-driven multiple locations.
“Businesses need to adapt faster, and
is only a matter of quarters awa
Media organisations can re
sition of most of 21st Century Fox, a
deal that has since been complicated
rise of the technology superpow-
ers and of Netflix in particular. win market share. Disney is exhibit and faces a £500-million shortfall. even, perhaps, the creative pro-
powers 900 customer sites and thou-
sands of channels. media organisation this is often achieved by trying more their business by using that dat by NBCUniversal-owner Comcast’s Since launching 20 years ago, the A. Ahead of pulling its content from
Netflix in 2019 to launch its own
Caught in a similar bind, commer-
cial broadcasters are already team-
cess itself is certain to be adopted
across the industry.
for advertising, subscriptions, c $31-billion (£22.6-billion) offer to buy monster streaming service now
Sky, of which Fox owns 39 per cent. has 125 million subscribers in 190 streaming service, the entertainment ing up to help weather the advertis- A fourth trend is that we’ve entered
licensing or other forms of reve
Meanwhile, Vodafone has joined countries. Wall Street bank Piper powerhouse has long been bolstering ing storm. Such was the rationale the age of “peak TV”. A record 487
Dalet, with almost 100 third-pa
50%
Ad revenue is shifting across video distribution channels partners in its ecosystem, has the fray with an $18-billion deal Jaffray predicts it will reach 160 its intellectual property via acquisi- behind the recent tie-up between scripted shows aired in the US mar-
to buy European cable networks million by 2020, while Netflix tions of Lucasfilm, Marvel Studios the UK’s Channel 4, France’s TF1, ket last year, while producers have
$billions CAGR (%) up the digital media supply cha
from Liberty Global. Then there’s says it will spend $7 billion to $8 and Pixar. Hence its play for Fox. Italy’s Mediaset and Germany’s gone from selling to a handful of
100 2010-2016 2016-2020 enables and encourages clients
CBS’s still-in-the-balance reun- billion on content in 2018. That ProSiebenSat.1. potential buyers to today’s prolifer-
advantage of the latest technolo
of adults aged 22 to 45 87 Overall 4 4 ion with Viacom, whose brands level of spending places Netflix Meanwhile, “cord-cutting’ will ation of channels, streaming plat-
soon as they become available, in
didn’t watch any broadcast include Paramount Pictures, MTV ahead of competitors such as Time accelerate. In America, according to forms and services.
collaboration, build competitive
or cable TV in 2017 80 75 tages and operate more dynamic and Nickelodeon. Warner’s HBO and Hulu. However, eMarketer, 22.2 million adults will As the battle for attention intensi-
19 fies, telcos, corporates, tech giants
7X
have cut the cord of their cable, sat-
7
Non-TV video 35 30 Further, the Dalet platform With other media mergers and
acquisitions reportedly in the
Netflix isn’t the only tech player
disrupting TV as it’s estimated by
With media mergers ellite or telco service by the end of and upstarts are all jockeying for
ages efficient, component
59 1
2
5 workflows, so content does n and acquisitions in last year, a rise of 33 per cent from position, resulting in an alpha-
16.7 million in 2016. bet soup of distribution and busi-
increase in global mobile data
60 0 16
15
Non-linear TV 35 30 to be rendered at every stag
life cycle. For media organis
the works, television Yet these unchartered territo- ness models. With viewers increas-
traffic between 2016 and 2021 15
Broadcast 1 -2
this approach significantly spe is in an unprecedented ries will throw up opportunities
too, particularly for niche, disrup-
ingly voting with their remotes, the
industry’s Game of Thrones moment
processes, facilitates compl
Study by the marketing agency Hearts & Science
40 20
networks
(national) mass content volume workflow
state of flux tive content creators. In the wake is far from over yet.
19
18 as international versioning and
Broadcast TV 1 -1
platform content distribution,
82%
stations (national
and local spot) mises operating costs and e
20 better collaboration. This w
26 24 -2
Cable networks 4 mately reduce the industry’s
21 (national)
of all consumer internet traffic storage and compute footprint
will be from IP video by 2021, is a good thing for the planet.
4 5 5 0
up from 73 per cent in 2016 Cable multiple- 5 Clearly, a specialist platform
2010 2016 2020 system operators Dalet’s is vital for business leade
(national and
Cisco BCG analysis
local spots) ing to build a truly agile, data
media organisation that in
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