Video-on-demand is dominating the Media and Entertainment industry. This is prompting distributors to come up with different ways to bundle and disseminate content, creating new revenue models, and opening up all kinds of opportunities to push the envelope on content creation.
In Deloitte’s 2017 outlook, Kevin Westcott, vice chairman and US Media and Entertainment lead, covers three important questions:
Explore Kevin’s insights in the 2017 Media and Entertainment Outlook.
The way in which we consume news and entertainment has changed dramatically over the past decade, creating both challenges and opportunities for traditional broadcasters. Think about it: Millennials spend more time streaming content than watching it on television, and more than 20 percent of them are viewing shows on their mobile devices. Streaming services are growing rapidly, with around 60 percent of consumers using them monthly. Video-on-demand viewers are expected to reach 209 million by 2021, up from 181 million in 2015. With consumers in the driver’s seat, traditional business models are hitting some speed bumps.
Key takeaways:
Business models and the economics of the industry are changing—something many traditional enterprises are only now beginning to acknowledge. Given the continued fragmentation of audiences, companies need to focus on expanding the reach of their content to the broadest audience possible. That means recognizing that many of their viewers, particularly millennials, are “cord-nevers” and may only be reachable via Internet-streaming channels.
Key takeaways:
One of the most exciting emerging developments in media and entertainment is augmented and virtual reality. These technologies offer an entirely new set of opportunities for content creation. An arms race has already begun: In 2015, 234 companies working on virtual reality (VR) had raised a total of $3.8 billion in capital, and VR companies now have a combined market value of $13 billion.
Key takeaways: