The future of the TV and video landscape by 2030 - Deloitte

Page created by Alfredo Hardy
 
CONTINUE READING
The future of the TV and video landscape by 2030 - Deloitte
The future of the TV and
video landscape by 2030    1
The future of the TV and video landscape by 2030 - Deloitte
The future of the TV and video landscape by 2030

      More info and the video:
www.deloitte.de/de/future-of-tv-video

                                                                                      02
The future of the TV and video landscape by 2030 - Deloitte
The future of the TV and video landscape by 2030

Introduction: a market on the move                                                    04
Scenario thinking                                                                     05
The underlying drivers – and how we derived them                                      07
Expert predictions – what we are certain about                                        11
Journey into our four scenarios                                                       13
Taking a closer look                                                                  23
Methodology                                                                           25
Contacts, Authors & Sources                                                           26

                                                                                                 03
The future of the TV and video landscape by 2030 - Deloitte
The future of the TV and video landscape by 2030

Introduction:
a market on the move
“On-demand-services will disrupt the TV and video industry”, “New market
players such as Netflix or Amazon will soon replace traditional broadcasters”,
“Consumers’ demand for TV and video consumption is fundamentally
changing”: established players are being increasingly confronted with horror
news about their own positioning within the future TV and video landscape.

But will these dramatic predictions really                 From another perspective, on-demand-                    This rapidly changing market landscape
come true? TV and video are indeed                         services have quickly changed consumers’                makes future predictions difficult, if not
facing much uncertainty, and the extent                    demand for TV and video consumption.                    impossible. We therefore adopted a more
of change in the sector is hard to foresee.                The Deloitte digital media trends survey                holistic approach – and we now invite you
Streaming services no longer serve as just                 2018 states that almost 48% of all US                   to travel with us to the year 2030 to take a
a platform for movies and TV shows, they                   consumers stream television content every               glimpse into four scenarios of the future of
are also investing in producing and licensing              day or week.1 Likewise in the UK, streaming             TV and video. Our scenario approach does
their own content. This places them in                     video services have gained in importance,               not aim to predict the most likely outcome,
direct competition with the traditional TV                 already 41% of all consumers purchased                  but to illustrate what could plausibly happen
and video industry. At the same time, TV                   such a service in the UK.2 Even in the more             in the world of TV and video and how
channels and media organizations are                       conservative German TV market, 44% of the               today’s market players might adapt to deal
starting their own on-demand offerings.                    population make use of subscription-based               with the many changes and uncertainties
Also, large content producers are setting up               videos-on-demand (SVoD) at least once a                 along the way.
their own streaming services.                              week.3 With the success of VoD, consumers
                                                           increasingly expect relevant content
                                                           accessible at any time, in any place, and in
                                                           the format that best fits their needs.

Fig. 1 – Average weekly video content consumption (in hours)

Among Total Consumers

        27
                          23                22                22
                                                                                20
                                                                                        17        16                        17
                                    15                                                                              15

                 8                                  10
                                                                       7                                    8
                                                                                                                                                    Live broadcast TV
                                                                                                                                                    Streaming video

           Japan               US            Germany            France             Brazil              UK             China

1
    Digital Media Trends Survey 2018 (United States) ; 2 Deloitte’s Digital Democracy Survey 2018 (global); 3 Deloitte Media Consumer Survey 2018 (Germany)           04
The future of the TV and video landscape by 2030 - Deloitte
The future of the TV and video landscape by 2030

Scenario thinking
The highly dynamic TV and video market            work in different potential futures. It is thus
is characterized by emerging new market           necessary to generate a set of scenarios,
offerings, disruptive digital players, and        each of them describing a specific, plausible
rapidly changing consumer requirements.           world of the future which substantially
In this uncertain environment, the strategic      differs from the others.
steps of relevant stakeholders will be
crucial factors influencing the future market     The objective of scenario design thus is
landscape. What they decide today will have       not to identify future events, but rather to
major effects on their future consumer            emphasize relevant forces that move the
relationships, the market structure, and          future in different directions. Scenarios
technological standards.                          are narratives of alternative future
                                                  environments in which today’s decisions
Conventional strategic analysis seldom            might play out: they are neither predictions
manages well in such highly uncertain             nor strategies. By making the driving forces
environments, whereas scenario design             visible, strategic planners can consider them
is one approach that can look beyond the          and adapt their strategy accordingly.
usual planning horizon of three to five
years. While predicting the future is clearly
impossible, scenario design isolates the risks
and opportunities of certain strategic issues.
It helps in develop robust strategies that will

                                                                                                                                                  05
The future of the TV and video landscape by 2030 - Deloitte
The future of the TV and video landscape by 2030

Scenario design is an approach that
can look beyond the usual planning
horizon of three to five years. It
helps develop robust strategies
that will work in different potential
futures.

                                                                          06
The future of the TV and video landscape by 2030

The underlying drivers –
and how we derived them
The foundation of our scenarios is a
comprehensive set of underlying drivers
                                               Traditional TV and non-linear content
that potentially shape the future of the TV
and video industry. We therefore conducted
                                               offerings will coexist. New and existing
expert interviews and made use of our
unique external environment analysis based
                                               players will reposition along the value
on Natural Language Processing algorithms.
The resulting drivers were then clustered
                                               chain in a partly consolidated market.
into social, technological, economic,
environmental, and political factors (STEEP)
and rated with regard to their degree of
uncertainty and their impact on the TV and
video industry (see Figure 1).

                                                                                                               07
The future of the TV and video landscape by 2030

  Fig. 2 – Driver evaluation according to degree of impact and degree of uncertainty
       High

                                                                          Demand for        Market entry                    Distribution                                               Importance
                                                                                                              Content                           TV         Broad-       Average
                                      Level of exclusive content          on-demand          of tech /                       of TV and                                                  of sport/
                    Importance                                                                               aggregator                     advertising    caster         time
                                       in national broadcasting             content          internet                          video                                                      event
                       of live                                                                                                               spending       role       spent with
                                                                                              giants                          content                                                   licensing
                      content                 Relative importance                                                                                                       TV/ video
                        on TV          of linear broadcasting in contrast           Level of intellectual
                                       to non-linear/ on-demand services            property regulation        Influence                            Number of
                                                                                                                                 Cooperation                                    Ownership of
                                                                                                                   of           between players      content
                    Role of OTTs        Broadcaster                                                                                                                             sports rights
                                                                                                                 aging                              producers
                                      revenue streams         Introduction of   Content
                                                                                                  Net          viewership
                       Quality                               media regulation    rights
                                                                                                neutrality                                                            In-car
                      of digital            TV               for online/ mobile
                    infrastructure                             pure offerings                                                                                       relevancy
                                        advertising
                                                                                               Global
                                       measurement
                                                                                            media market
                    Regulation                            Advertising     Owner of the      consolidation         Convergence of
                     of media           Producer             focus        advertising
                     company
                    ownership
                                                                          relationship
                                                                                            Availability
                                                                                                                    advertising
                                                                                                                      markets         Zone of interest                                  National
                                                                                                                                                                                        economic
                                       Advertising         Level of
                                                                          Capability         of All-IP                                                                                   climate
                                          sales             market
                   Requirements                                             of data           media
                                        approach          regulation
                   for employees                                           analytics         networks                  Piracy                                        Sensitivity
                      in media                                                                                                                                        regarding
                                       Ability of AI to
                                                              Convenience of                                                                                         data privacy         Legal
                                         influence                                        Cybersecurity
                                                           technological progress                                                  Digital                                             restrictions
                    Digitalization       audience
                     of video/ TV                                                                                                capability of                                         in national
                                                                                                                                                                 Attractiveness
                     production        Polarization of        Advertising             Demand for                                   general                                             advertising
                                                                                                                                                                   of national
                                                               payment                                       Diversification        public
                      processes         advertising                                 in-home, large-                                                Mobile         video sector
                                                                                                                of players
                                          into sales                             screen entertainment                                             relevancy        for talents
                                                                                                             in the TV/ video                                                        Attractiveness
                                         and brand               Data                                             market                                                               of national
                   Innovative                                 monetization            Ability of AI                                      Demand for social            Demand          video sector
                    capability          Size of                                        tools to                                       content/ user-generated        for micro-
Degree of Impact

                                                                                                                                                                                       for talents
                     of video          supplier                  Vertical           predict content                                           content                payments
                     suppliers        ecosystems               integration            acceptance
    Medium

                    National           Video/ TV          Length and         Disruptive           Content
                                                                                                             Development         Education       Transmission/       Length of         Placement
                    content          consumption           format of          changes              focus
                                                                                                               of cord-          on media/         Frequency         program/         of advertising
                     quotas            behavior              video           in release
                                                                                                                cutters          video use                            content
                                                          advertising         windows
                                                                                                                                 in schools

                     Degree of                                                 Device            Fiction
                       interde           Dependence             Stock          control                                                                 TV as            Global            New
                                                                                               focus of TV            Fan/            Focus of
                     pendence              of local            market                                                                                 enabler           media/         categories
                                                                                                                    follower           pay-TV
                      between            productions           pressure                                                                              for social        content          of video
                                                                                                                      focus
                    social media         on subsidies                                                                                               interaction       regulation        devices
                                                                               Pilot
                        and TV                                               selection         Relevance
                                                                                               of global
                                                                                                audience
                                                                                                                 Cloud            Multi-
                                                      User                                                         in            Channel                         Demand
                    Level of                                                                                                                                                           Ratio of
                                                   multitasking                                                operations        Networks                        for new
                     child                                                                                                                                                           pay-per-use
                                                                                             Focus                                                            forms of story-
                   protection                                                                                                                                                            vs.
                                                                        Corporate           of user                                                               telling
                                                                                                                                                                                     subscription
                                                                          social          engagement                                                                                  payments
                                     Price of
                                     techno-       Integrated           responsi-
                                     logical         online               bility
                                     devices        shopping
                                                                                                                Application of
                                                                                             Demand                                                                                  Degree of
                     Holo-                                                    Political                          blockchain-
                                                                                                for                                                                                 personalized
                    graphic                                                  influence                              based
                                                                                            augmented/                                                                                content
                      TV           Tracking                                    on the                              content                                        Cross-
                                                            Existence                         virtual              trading
                                     with                                     national                                                 Market entry of           screen/
                                                              of the                          reality             platforms
                                   built-in-                                   video                                                 totally new players       transmedia
                                                            European                         offerings
                                   monitor                                     market
                                    sensors                   Union
       Low

                   Low                                                                               Medium                                                                                     High
                                                                                               Degree of Uncertainty

              Technology               Society             Environment              Politics            Economics

                                                                                                                                                                                                    08
The future of the TV and video landscape by 2030

In this way we identified the two relevant        further approach. The 23 driving forces in                       questions, “What will the player
types of driving forces for our scenarios:        the ‘zone of interest’ have subsequently                         structure look like?” and “Who will
                                                  been tested by measuring their inter-                            have access to customers?”, illustrated in
•• Drivers with a high impact and with a
                                                  dependencies and relevance to each other,                        Figure 3.
   clearly predictable evolution (see the
                                                  and clustered according to their degree of
   chapter on Expert Predictionssee Expert
                                                  relatedness. At the end of this process, a
   Predictions)
                                                  combination of ‘critical uncertainties’ was
•• Highly uncertain drivers with a high impact    chosen, which created the most challenging,
   on the TV and video industry.                  divergent, and relevant scenarios. This
                                                  process led to a scenario matrix, serving
Those drivers that are uncertain and highly       as the basis for our scenario analysis. The
relevant are located in the ‘zone of interest’,   matrix is built on two axes addressing
which is the fundamental section for our          the critical uncertainties by raising the

Fig. 3 – Scenario Overview for the Future of TV and Video in 2030

                                                              Platform owner

                                                                                                               Universal
                                     Lost in Diversity
                                                                                                             Supermarket

      Driven by             What will the player structure look like?                                                                         Driven by
national players                                                                                                                              gobal players
                                                                        Who will have access to consumers?

                                      Revenge of the                                                           Content
                                       Broadcasters                                                           Endgame

                                                              Content owner

                                                                                                                                                                 09
The future of the TV and video landscape by 2030

The axis “What will the player structure         The second axis or critical uncertainty
look like?” reflects the changing provider       that will determine the future of video is
landscape in the TV and video industry.          “Who will have access to customers?”
This dimension not only illustrates potential    This raises the question of whether
tendencies towards internationalization          broadcasters, digital platform companies, or
with global media players perhaps                content producers will be able to leverage a
pushing national broadcasters and                direct consumer relationship – with massive
content producers to the fringes. It also        impact on monetization options, either
considers the fact that large digital platform   via innovative advertising or paid content
companies (DPCs) such as Amazon, Apple,          models.
Facebook, Google or Netflix, increasingly
enter additional stages of the TV and video
value chain e.g., by producing their own
content.

                                  Taking a closer look: We see digital platform
                                  companies being the major disruptors in
                                  the future TV and video market. By contrast,
                                  broadcasters and content producers face the
                                  greatest pressure for change.

                                                                                                                                              10
The future of the TV and video landscape by 2030

Expert predictions –
what we are certain about
As mentioned above, our scientific scenario approach identified another
group of relevant influencing factors. By contrast to the ‘critical uncertainties’,
our experts predict a distinct evolution for those. They also highly impact the
future of TV and video and have relevance for all of the four scenarios.
Six statements outline the key future developments in the TV and video
industry which can be clearly foreseen:

Digitalization will change content            Traditional TV and non-linear content        Advertising becomes targeted.
production, distribution, and                 offerings will coexist.                      TV and video advertising will adapt to
recommendation functionalities.               Linear and on-demand content will            new formats and increasingly focus on
All-IP becomes the standard for TV and        be equally important and will coexist        personalized ads. Leveraging consumer
video distribution. Fiber infrastructure      peacefully. Video-on-demand will soon        data will enable stakeholders to hyper-
and 5G networks will handle the massive       become mainstream in all population          target their ads and content, and thus
increase in digital traffic caused by an      groups, at the same time linear TV remains   maximize customer experience and value.
increasingly flexible and mobile use of       significant. Especially live content such    However, the extent of targeted advertising
media offerings. Beyond that, they will       as sports and major events will preserve     still depends on regulation and consumers’
strongly drive the digitalization level of    the high importance of traditional, linear   willingness to share their data. Advertising
video production processes. Artificial        television.                                  marketing will be something between a
Intelligence (AI) and analytics become key                                                 fully automated process and individual
elements of smart content discovery with                                                   sales negotiations.
intelligent recommendation functionalities.

                                                                                                                                         11
The future of the TV and video landscape by 2030

There will be moderate market                   Advertising and direct revenues will           New and existing players will
regulation overall.                             remain most relevant.                          reposition along the value chain in a
Market regulation will be more moderate         Generating new revenue streams is rather       partly consolidated market.
compared to the highly regulated media          difficult for the protagonists in the TV and   The global media industry will be partly
industry today. The lower level of regulation   video market. Innovative offers such as        consolidated. Stakeholders will make use
for online and mobile offerings leads to        demand-based-pricing for content will          of strategic mergers, acquisitions, and
a reduction of the regulatory pressure          not prevail to a major extent. In addition,    alliances to strengthen their content quality
for all market players, especially for the      consumer data has been only partly used        and distribution capability. Moreover,
traditional media companies. In particular,     to monetize. There are only a few new data-    numerous market players will shift
lower regulatory pressure will lead to a        driven revenue streams for broadcasters,       along the value chain by expanding their
higher level of freedom when it comes to        as consumers show only a moderate              businesses. Broadcasters will focus on
cooperation between market players and          willingness to pay with their data.            their core competencies but also occupy
concentration of media ownership. Net                                                          some other positions in the value chain.
neutrality will continue to exist.                                                             OTTs become more important in the future
                                                                                               TV and video market, whereas tech players
                                                                                               play a minor role. Looking at content
                                                                                               production, both traditional studios and
                                                                                               non-traditional providers will be part of it.

                                                                                                                                             12
The future of the TV and video landscape by 2030

Journey into our
four scenarios
The following scenarios demonstrate how
different the future paths of the TV and video
market could be. Let us explore each one
individually to see how they differ and what risks
and opportunities might arise in the future.

                                                                                                   13
The future of the TV and video landscape by 2030

Scenario 1

Universal Supermarket
In this scenario, a few global digital platform
companies have taken over the leading role in
aggregation and distribution from national broadcasters.
They control the TV and video market and have entered
all steps along the value chain, including creation,
aggregation, and distribution of content and the direct
customer relationship. Like large supermarkets, each of
the digital platform companies offers an extensive range
of global and national content, only differentiated by
some exclusive productions and sports rights.

                                                                                                         14
The future of the TV and video landscape by 2030

Broadcasting as we know it today has             Advertising, as well as consumer
disappeared. Since video content is              relationships, has also shifted to the digital
distributed in all-IP and mainly online          platforms. Broadcasters are dependent on
over the internet, broadcasters have             the revenue shares from digital platform
been through a painful process of change         companies and cut off from direct paid
and evolved into pure creators of largely        content and advertising revenues.
national or specialized content, without
any stakes in distribution or customer           Advertising agencies and traders have
relationship. They are now a supplier of their   disappeared, rendered irrelevant by digital
own channels and streams to the digital          platforms’ direct models of ad trading.
platform companies’ universal supermarket.       Beyond that, their technological prowess
However, broadcasters remain a relevant          helped in implementing new, personalized,
part of the video landscape. Consumer            and interactive forms of advertising.
demand for relevant content such as news
or local(ized) formats has saved their           In this scenario, regulators did not take
existence.                                       significant steps to monitor and control the
                                                 digital platform companies’ market strength.
At the beginning of the market                   Though the market is consolidated,
transformation process, consumers were           access to local content is widely regarded
overwhelmed by the quantity of content           as guaranteed. From the regulator’s
available and the proliferation of content       perspective, the digital platforms are doing
providers. That confusion quickly evolved        a decent job in catering for different cultural
into frustration. Subsequently, global           tastes and providing local quality content.
digital platform companies exploited their
technological capabilities to develop smart
selection and recommendation, supported
by artificial intelligence.

In addition, they initiated the consolidation
of the vendor landscape: The financial
capabilities of the global digital platform
companies allowed them to acquire
exclusive sports rights and produce
global blockbuster content, displacing
comparatively smaller players such as
broadcasters and content creators from
important stages of the value chain.

                                                                                                                                                 15
The future of the TV and video landscape by 2030

Scenario 2

Content Endgame
In the ‘Content Endgame’ scenario, large global content
owners are the winners of the market transition. They
have integrated vertically along the entire value chain
and started to withdraw and withhold content from
digital platform companies and distribute via their own
channels, bypassing the platforms and establishing
direct customer relationships.

                                                                                                        16
The future of the TV and video landscape by 2030

Content has become the main                    Digital platform companies have retreated
differentiating factor in the video market,    to becoming pure distribution channels,
while technologies such as distribution,       focused purely on technical delivery. The
search, and recommendation are                 digital platform companies’ business
considered a commodity.                        model has changed fundamentally, since
                                               consumers are no longer paying for a
Big content owners with strong program         specific platform, but directly for their
brands and global reach target a global        preferred content. Apart from advertising,
audience with costly blockbuster               freemium services have become a relevant
productions and benefit strongly from          source of revenue for digital platform
economies of scale. Smaller producers have     companies.
been pushed out of the market. The variety
of content has decreased, but the quality      As content really is king in this scenario,
of global productions has reached new          global content owners negotiate directly
dimensions.                                    with advertisers. New ad models on a
                                               global scale have proved to be beneficial for
Broadcasters have survived by shifting their   content owners and international consumer
focus solely to the creation of strong local   brands. Finally, advertising partnerships
formats. They have evolved into suppliers to   have been established in the market, with
the big global content owners and benefit      sponsoring and content marketing being the
from the protection of national regulators.    most important examples.

                                                                                                                                             17
The future of the TV and video landscape by 2030

Scenario 3

Revenge of the Broadcasters
In this scenario, national broadcasters have successfully
accomplished thetheir digital transformation and
secured a strong position in the TV and video ecosystem.
Broadcasters have evolved into digital platforms
established direct customer relationships and deliver
on-demand content. During the transformation process,
broadcasters developed excellent digital capabilities. They
have entered new services such as targeted advertising
and recommendation functions, which had previously
been dominated by the digital platform companies.
Furthermore, the high relevance of content for a national
audience puts broadcasters in a superior market position,
supported by regulatory measures such as content quotas.
                                                                                                        18
The future of the TV and video landscape by 2030

National broadcasters and global digital         In this technologically advanced scenario,
platform companies coexist in the market.        broadcasters are gaining valuable customer
This guarantees a great richness of content.     insights that are highly relevant to
While national broadcasters focus on local       advertisers. The collected user data would
quality content, digital platform companies      be an effective enabler for fully personalized
supply global productions and blockbusters.      advertisement, but advertising is part of a
Viewers can chose whether they want to           strong regulatory framework with strict data
watch linear or non-linear content from          privacy rules. Advertising agencies have
global or national sources.                      remained in the market and are helping
                                                 broadcasters implement innovative ads
Apart from several content partnerships,         within the legal guidelines.
technological alliances have also shaped
the market. All-IP network operators helped      Broadcasters also benefit from strong
broadcasters during the transformation           media regulation at a national level as
process with their expertise in digital media    local content production enjoys firm
distribution and by leveraging customer          regulatory support. The strict national and
data. With their national footprints,            European regulatory regime is the answer
network operators and broadcasters are           to the threat of globally dominant digital
ideal partners serving the same regional         media companies. With corresponding
markets. The alliance resulted in an efficient   measurement systems, broadcast industry
distribution of content via high-performance     bodies have secured a strong national
platforms with smart access to customer          media industry.
data.

                                                                                                                                                19
The future of the TV and video landscape by 2030

Scenario 4

Lost in Diversity
In our fourth and final scenario, the TV and video market
has evolved into a diverse ecosystem with no dominant
players. Instead, consumers are served by numerous
distribution platforms, a great richness of content, and
a steady turnover of players in the market. Demand
for national content remains strong, so partnerships
between global and local players are widespread. The clear
distinction between content production and distribution is
another key characteristic of this scenario.

                                                                                                           20
The future of the TV and video landscape by 2030

Everyone does everything in this scenario:       In this vivid and dynamic market, advertising
Global digital platform companies have           agencies continue to have a high relevance.
established direct customer relationships.       They systematically allocate advertising
Telecommunications providers,                    budgets and provide guidance within
broadcasters, and content producers have         the complex TV and video ecosystem. As
also successfully created their own digital      digital platforms facilitate personalized
platforms. Digital platform companies            advertisement, agencies had to acquire
contribute global formats such as high-          comprehensive data analytics skills. In this
profile series. To provide relevant local        way, they became indispensable advisors for
content they also forge alliances with local     advertisers.
producers. Network operators act as
super-aggregators. They provide access to        The primary concern of regulators in this
content and structure the market from the        scenario is the preservation of local content
customer’s perspective by offering guidance      and media companies. With their regulatory
across platforms. Consumers are only             decisions, they have strongly protected
interested in content and therefore tend not     national broadcasters and put them in a
to be loyal to any one platform.                 position to compete against the digital and
                                                 financial muscle of the large global digital
National broadcasters capitalize on the          platform companies.
consumers’ huge appetite for local news,
sports, movies, and series. Broadcasters
who started their digital transformation at
an early stage are using their own platforms
for content distribution. Others have
established partnerships with platform
providers, with the general trend towards
co-productions between broadcasters and
global digital platform companies. All in all,
national broadcasters remain independent
and maintain their livelihood by various
revenue streams.

                                                                                                                                               21
The future of the TV and video landscape by 2030

Fig. 4 – We clustered the main trends and drivers and prioritized two main forces influencing the future…

                                                         Platform owner

                                                     1                                           2
                                                                                     Universal
                               Lost in Diversity                                   Supermarket

      Driven by                                                                                                             Driven by
national players                                                                                                            global players

                                                 3                                                     4
                                Revenge of the                                  Content Endgame
                                 Broadcasters

                                                         Content owner

   1                                                        3
The TV and video market has evolved into a               National broadcasters contested their place
diverse ecosystem with no dominant players               by successfully accomplishing their digital
and a steady turnover of market participants.            transformation.

   2                                                        4
National broadcasting has been replaced by a             Global content owners can leverage a direct
few global digital platform companies.                   consumer relationship which gets them in
                                                         the driver seat.

                                                                                                                                         22
The future of the TV and video landscape by 2030

Taking a closer look
Looking at the final set of scenarios, we see digital platform companies (DPCs)
being the major disruptors in the future TV and video market. By contrast,
broadcasters and content producers face the greatest pressure for change.
We will therefore take a closer look at the strategic options for those two
stakeholder groups.

Even though our four scenarios are highly        processes, and mastering them is a
divergent, a few overarching implications        prerequisite to being well-positioned in an
are highly relevant for all of them. Firstly,    increasingly digital video market landscape.
broadcasters and content producers can           As a result, traditional players must become
no longer rely on their current market           attractive enough for digital talents as well
positions. To safeguard their business           as for creative minds, because in addition to
models and future revenue streams,               technology, attractive and creative content
they need to be open to cooperation and          certainly remains king.
alliances, even with their direct competitors.
Joint production, distribution or even           Next to these overall implications, we
platforms are appropriate measures for           have different distinguishing factors in
countering the threat posed by the DPCs.         each of the four scenarios, which affect
In parallel, regulators need to become           the actual options for broadcasters and
less restrictive when it comes to alliances      content producers. Depending on the
between equally positioned players within        respective scenario, stakeholders must
the TV and video value chain. Broadcasters       draw appropriate fundamental conclusions.
and content producers must work towards          However, the risk potential for each market
convincing regulators to permit such             player must be analyzed separately in order
cooperative models.                              to develop individual strategic options.

Beyond that, established broadcasters and
content producers must continuously invest
in their technological skills. Technology has
become a core element of their business

                                                                                                                                               23
The future of the TV and video landscape by 2030

     Universal Supermarkets
     In the Universal Supermarket scenario, broadcasters und content producers
     need to focus on the implementation and positioning of strong content brands.
     This branded content must be used to improve bargaining positions when
     negotiating partnerships with content distributors. Also, content brands
     should seek more international licensing and levereage. To secure additional
     revenue streams, broadcasters and content producers must extend their
     business models beyond the TV and video market into other fields, such
     as merchandising.

                                               Content Endgame
                                               Larger content producers need to invest more strongly in international content
                                               production directly or via subsidiaries to keep pace with their big global
                                               counterparts. Besides this focus on content, larger producers must strengthen
                                               the fields of customer relationship and advertising marketing in the Content
                                               Endgame scenario.

                                               Smaller broadcasters and content producers need to position themselves as
                                               inimitable national partners for global players through unique, local, and
                                               strongly branded content. Furthermore, they must explore alternative
                                               distribution channels through strategic alliances with DPCs or IP network
                                               operators.

Revenge of the Broadcasters
In this scenario, broadcasters must keep an eye on the general conditions
of the video market. They need to be aware of their political role and must
exert influence to prevent adjustments in the the regulatory framework
towards a less strict regime.

                                                    Lost in Diversity
                                                    In the Lost in Diversity scenario, broadcasters and content producers must
                                                    clearly place the emphasis on their own strengths. In a world in which
                                                    everyone does everything, only a strong focusing strategy and appropriate
                                                    investments secure the future market existence of broadcasters and
                                                    content producers.

                                                                                                                                     24
The future of the TV and video landscape by 2030

Methodology
The methodology of this study is based              Fig. 5 – Center for the Long View Scenario Methodology
on the proven scenario approach first

                                                                       7
employed by Shell, and then perfected by
Monitor Deloitte. A seven-step scenario                                    Monitoring                                      1   Focal Question
development approach (see image)
applies the guiding scientific principles of
objectivity, reliability, and validity. The study
is the outcome of a series of interviews,
questionnaires, and workshops involving
TMT experts from the Deloitte EMEA
network and industry professionals as well          6   Implications
                                                                                                 Seven Step                                2    Driving
                                                        & Options                                                                               Forces
as experienced scenario practitioners from                                                        Scenario
Deloitte’s Center for the Long View (CLV).                                                      Development
                                                                                                  Approach

Scenario design starts by identifying the
focal question of the underlying issue.

                                                                                                                                      3
Since we could tell an infinite number of
different stories about the future of the TV                5   Scenario                                                                  Critical
                                                                                                                                          Uncertainties
and video industry, we first had to agree on                    Narratives

the issue or strategic challenge we wanted
to address. This enables us to support
our TMT clients’ decision-making in an
appropriate way. Scenarios are tools for                                                   4   Scenario Frameworks
shedding light on the strategic challenge,
while the focal question sets the scope
of the scenarios. In the present case, we
focused on the question, “What will the TV
and video landscape look like by 2030?”             the bias of the traditional approach, which       as the building blocks for creating our
                                                    often has a built-in tendency based on the        scenario sets.
Scenarios are a way of understanding the            character, mood, or preferences of the
dynamics that shape the future. Therefore,          scenarists.                                       The scenario framework was developed in
in a second step, we pinpointed the forces                                                            the next step by focusing the entire list of
that drive the focal question. Driving forces       As a part of the workshop series, in              related uncertainties into two orthogonal
are fundamental sources of future change.           a third step we identified the critical           axes. We then defined a matrix consisting
They shape the course of events and                 uncertainties for the focal question. Not         of crossing and independent axes that
history and dramatically enhance our ability        all driving forces are uncertain, some may        allowed us to define four very different,
to imagine future scenarios. These drivers          be pre-determined. These are the trends           but plausible, quadrants of uncertainty. In
can be grouped into five categories, known          already in the pipeline, unlikely to vary         the underlying study, we used “What will
as STEEP forces, as they consist of Social,         significantly in any of the scenarios. Critical   the player structure look like?” and “Who
Technological, Economical, Environmental            uncertainties are driving forces with the         will have access to consumers?” as critical
and Political forces. Since most issues             potential to tip the future in one direction      uncertainties.
involve more than one of these categories,          or another. They have two fundamental
they are only handles. In order to derive           characteristics: they have an unusually high
our driver list, we also conducted expert           impact and are uncommonly uncertain or
workshops using Deep View, an artificial            volatile. Initially, all uncertainties appear
intelligence (AI)-based trend-sensing and           unique, but by stepping back, we can
analysis machine. Deep View helps to avoid          reduce uncertainties to clusters that serve

                                                                                                                                                    25
Contacts
                                                                                       The future of the TV and video landscape by 2030

Alexander Mogg                             Florian Klein
Partner | Industry Lead TMT                Director | Head Center for the Long View
Monitor Deloitte                           Monitor Deloitte
Tel: +49 (0)89 2903 7939                   Tel: +49 (0)69 9713 7386
amogg@deloitte.de                          fklein@deloitte.de

Authors

Klaus Boehm                                Ralf Esser
Director | Media and Entertainment Lead    Senior Manager | Head of TMT Insights
Deloitte                                   (Germany) Deloitte
Tel: +49 (0)211 8772 3545                  Tel: +49 (0)211 8772 4132
kboehm@deloitte.de                         resser@deloitte.de

Paul Lee                                   Jasmin Raab
Partner | Head of TMT Research             Senior Consultant | Scenario Practitioner
Deloitte                                   Center for the Long View
Tel: +44 (0)20 7303 0197                   Monitor Deloitte
paullee@deloitte.co.uk                     Tel: +49 (0)211 8772 4969
                                           jraab@deloitte.de

With the contribution of:
Mark Casey, Partner and Global Telecoms, Media & Entertainment Lead Deloitte
Patrick Steemers, Partner and Telecom, Media & Technology Lead The Netherlands
Jean-Charles Ferreri, Partner Monitor Deloitte France

                                                                                                                                     26
The future of the TV and video landscape by 2030

                                              27
More info and the video:
www.deloitte.de/de/future-of-tv-video

This communication contains general information only not suitable for
addressing the particular circumstances of any individual case and is not
intended to be used as a basis for commercial decisions or decisions of any
other kind. None of Deloitte Consulting GmbH or Deloitte Touche Tohmatsu
Limited, its member firms, or their related entities (collectively, the “Deloitte
network”) is, by means of this communication, rendering professional advice
or services. No entity in the Deloitte network shall be responsible for any loss
whatsoever sustained by any person who relies on this communication.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK
private company limited by guarantee (“DTTL”), its network of member
firms, and their related entities. DTTL and each of its member firms are
legally separate and independent entities. DTTL (also referred to as “Deloitte
Global”) does not provide services to clients. Please see www.deloitte.com/de/
UeberUns for a more detailed description of DTTL and its member firms.

Deloitte provides audit, risk advisory, tax, financial advisory and consulting
services to public and private clients spanning multiple industries; legal
advisory services in Germany are provided by Deloitte Legal. With a globally
connected network of member firms in more than 150 countries, Deloitte
brings world-class capabilities and high-quality service to clients, delivering
the insights they need to address their most complex business challenges.
Deloitte’s approximately 264,000 professionals are committed to making an
impact that matters.

Issue 8/2018
You can also read