Television in transition

Accenture Media and Entertainment

Television in TransitionEvolving consumption habits in broadcast media worldwideAccenture Consumer Broadcast Survey 2008

Survey Methodology

The Accenture Broadcast ConsumerSurvey 2008 is based on a detailed,questionnaire-led research studyinvolving a total of 7,000 consumersacross eight countries. Throughout the research we took pains to elicit the frank views of each of these interviewees through balanced anddetailed questioning that revealedtheir true perceptions and aspirations, without leading them towards any particular viewpoint. The followingsummary presents some of the key

findings from the study, as well ashighlights the implications for media,technology and communications companies operating in this dynamicand evolving sector.

The research program consisted of a series of online surveys using a standardized questionnaire, conductedby Accenture among approximately1,000 demographically-representativeadults each in France, Germany, Italy,Spain, the United Kingdom and theUnited States. A further 500 telephone interviews each were

conducted among consumers living in major cities in Brazil and Mexico.Because of variations in the nationalomnibus services available in eachcountry, the age of the adults surveyed differed, with adults aged16-54 interviewed in Italy and Spain,and adults aged 16-64 interviewed in France, Germany and the UK. Inthe US, a national online omnibusreached adults aged 18 and older. In Brazil and Mexico, the telephonesurvey was conducted among adultsaged 18 to 64.

The survey was conceived anddesigned with the explicit aimof providing insights into thedramatic and global changesnow under way in consumerbehavior and preferences, inresponse to the proliferation of new content distributionchannels. This report, and thethinking within it, represent a response to ongoing issuesfaced by clients and intenseinternal debate withinAccenture, as clients in sectorsincluding media, communica-tions, high technology and

retail strive to achieve highperformance in this new environment.

In order to support clients inthese efforts, we have producedhere what we believe to be themost detailed investigation todate of consumer attitudestoward new ways of consumingand interacting with television content − a quantum leap that is increasingly putting into question how we define‘television’ today. The reportalso goes on to examine what

companies should be doing now and in the future to capitalize on the trends wehave identified and to power their journey towards high performance.

We hope you find this reportboth insightful and practical,and that it brings you somefresh perspectives on thesweeping change facing all of us in the media industries.

David WolfGlobal Digital Transformation LeadMedia and EntertainmentAccenture

Welcome to the executive summary of Accenture’s Consumer BroadcastSurvey 2008

Television in Transition 1

2 Television in Transition

Among consumers worldwide, the traditional television set is increasinglyregarded as just one option among several for consuming video content, as the boundaries between the TV anddevices such as the mobile handset and PC become more blurred by the day.As this shift in consumption behaviorsgathers pace, a massive wave of changeis in prospect − one that will ultimatelytransform the content production anddistribution marketplace worldwide.

The worldwide migration towards newconsumption habits is being driven by new content offerings enabled byadvances in distribution technologiesand devices, and involves consumers of all ages in all geographies. Three outof 10 adults across the eight countriesin our survey now watch some contentevery week via alternative devices suchas mobile and PC.

And the change has much further to run. More than 95 percent of ourconsumer interviewees worldwide still

watch TV every week, with 80 percentwatching four or more channels. Buteven those consumers mainly using theTV set in the home are adopting newhabits. They love the digitally-enabledofferings now available in their livingrooms − with an overwhelming majoritysaying they are highly attracted by the features and benefits offered byenhanced television services. Three-quarters of consumers worldwide areinterested in at least one feature ofenhanced television, primarily in on-demand services/content and the abilityto time-shift viewing − findings whichconfirm that what consumers are reallyseeking is greater control over theirviewing experience.

Watch the youth: the future wave of change

While all consumers are joining themove towards new modes of consumingcontent, the shift is being spearheadedby younger consumers under the age of

35, and especially under 25. As well asbeing more dissatisfied with currenttelevision options, under-25s are morelikely to watch content on alternativedevices, and more likely to prefer watch-ing content on demand. This behavioral shift among younger adults representsthe beginnings of an impending wave of change.

The wave promises to be all the morepowerful since consumers of all agesshare a tendency to be loyal to contentbrands rather than distribution channels.Around 70 percent of consumers globallywatch four or more programs a week on four or more channels. Consumersare seeking out the content brands they want regardless of channels, ratherthan sticking with a channel they know.The message is clear: the days of theline-up are numbered − and the value of “must-see TV” in prime time is falling.This is something the networks mustcome to terms with and address beforeit is too late.

Executive Summary

What is television anyway?“[You are] witnessing a complete disaggregation of the networks…”

Bruce Rosenblum, President, Warner Television Studios


Content drives devices…

As well as driving their choice of channels, consumers’ content prefer-ences also shape their use of alternativedevices, since they select each device on the basis of which one will best suit the specific content they want toconsume. They find the mobile devicemost interesting as a way of receivingnews and information, while they findthe PC most interesting as a channel for full-length television programming.Clear content preferences are alsoemerging between ‘live’ and ‘on-demand’ consumption, reflecting thetimeliness and urgency of the contentexperience. 59 percent of consumersprefer to watch news ‘live’, and 46 percent say the same about sportingevents. The strongest content genrepreferences for ‘on-demand’ consump-tion are sitcoms and dramas, both at 23 percent.

…and readiness to accept advertisements

When it comes to paying for content,consumers’ most popular choice as away of paying for downloading TV showsfrom a digital service is by agreeing to view advertisements with the pro-gramming. This option is chosen by 33percent of consumers, ahead of variousfinancial payment methods — includinga monthly fee for unlimited downloads(19 percent) and paying for a season ofshows (13 percent).

As well as leading the migration to newmodes of consumption, consumers under25 are also setting the pace in terms of readiness to pay for content. They arethe most likely to agree to watch ads as a form of payment (42 percent), andthe most likely to opt for any form of payment (45 percent) for downloadingTV shows digitally.

One size will not fit all

Our top-line findings − notably thewidespread readiness to adopt newmodes of consumption − are remarkablyconsistent worldwide. But the consumerbases in the various geographies surveyed do exhibit widely varying viewsand expectations, often reflecting thedifferent offerings and infrastructureavailable in each country.

This distinction applies especially toemerging markets with, for example,consumers in Brazil being the most dissatisfied with their existing televisionexperience, and those in Mexico beingthe most interested in viewing contentvia mobile. Such variations mean thatone size will not fit all in the globalcontent delivery marketplace, and that media companies must think globally and act locally to achieve high performance in the future.

”Now TV’s not special, it's ubiquitous. And the images on our TVs, mobiles and laptops may or may not emanate from a television company...” Peter Bazalgette, Former Chief Creative Officer, Endemol

New consumption models: themass-migration gathers pace

The way people across the world consume content is changing rapidlyunder the impact of new technologiesand devices. As a result, television isshifting from its origins as a clearly-identifiable stand-alone mediumtowards a future in which it just one ofan expanding array of devices throughwhich people will choose to consumethe content they want.

The Accenture Global BroadcastConsumer Survey 2008 confirms that the migration to new modes ofconsumption is well underway andgaining momentum. Consumers world-wide — increasingly accustomed tounfettered access to content —

are questioning and bypassing theexperience provided by the traditionaltelevision device. And as people get the chance to see and experience newconsumption opportunities, they arebecoming more dissatisfied with thetraditional television experience, andhave begun to consume content in new ways.

According to IDC, today’s consumersconsume 70.6 hours of media per week,but only 23 percent of this involveswhat we would call a traditional television device. Our research echoesthese findings by showing that threeout of 10 adults across the eight countries now watch some TV contentvia alternative devices (see Figure 1).

In parallel with adopting new modes of viewing and participation, consumers are becoming increasinglyinterested in the benefits offered by‘enhanced television services’. These are offerings that provide them withfar greater control over their viewingexperience, through capabilities such as viewing on demand, time-shiftingand catch-up facilities. As Figure 2shows, three-quarters of consumers are interested in at least one feature of enhanced television services, withon-demand services regarded as themost compelling feature, closely followed by the ability time-shift their viewing. These two attributesunderline that control of the experience is what consumers want — and will ultimately get.


Figure 1: Programs watched weekly on alternate devices

8>

4-7

2-3

1

Any

Alternate devices include mobile phones, PDAs and personal computers

40% 30%20%10%0%

Percent of respondents

Television in transition

…led by youth

As consumers progressively win andexert this control, the global migrationtowards new consumption patterns isbeing led by consumers under 35 yearsof age, and especially those under 25.In virtually every country in the survey,the younger a consumer is, the lesslikely he or she is to be happy withtraditional television (see Figure 3),and the more likely to be excitedabout consuming content via mobileor PC. So it is younger consumers who are setting the pace in terms ofreadiness to embrace new technolo-gies and try new consumption options.


“Media companies don’t control the conversation any more.”Rupert Murdoch, Chairman, Newscorp

Figure 2: Most compelling features of an “enhanced TV service”

Watch same content on different platforms

Able to access additional content related to program

Having a catch up TV/Play it again facility

Time shift/watch when you want

View on demand content

30%20%10%0% 50% 40%

Percent of respondents

The message is clear: watch the youth— they are the leading indicator, andthe wave is coming. Our researchreveals many correlations between consumers’ age and their attitudes andbehavior about new viewing options.These findings suggest that changes in behavior will accelerate as theseyoung consumers gain greater spend-ing-power over time. For instance,compared to older consumers — andespecially those over 55 — the under-25 set is:

• Less likely to say they are satisfied with current television options;

• More likely to watch content on alternative devices;

• More likely to be familiar with on-demand TV, and to prefer watching content on demand; and

• More willing to ‘pay’ to download content, whether by paying money or agreeing to watch advertisements.

“They need to replace or exposesenior managementto what 18-20 year olds want.” US Television executive,

Accenture 2008 Global Content Study


Figure 3: Level of happiness with current TV offerings by age

Would enjoy watching content on a PC (Q6)

Would enjoy watching content on a mobile device (Q5)

Happy with current TV

<25 years old 25–34 35–44 45–54 55+

90%

80%

70%

60%

50%

40%

30%

20%

10%

Per

cent

of

resp

onts


Taken together, these characteristics set the context for the new contentconsumption environment that willemerge in the next few years, as theseyounger consumers become an evermore dominant group in the user marketplace. As Figure 4 shows, consumers under 35 are more likelythan their older counterparts to findsome features of expanded televisionservice compelling.

Under-35s, and more particularlyunder-25s, are also more ready and

willing to pay for downloading TVshows from a digital service. Thisapplies whether that payment is infinancial form (Figure 5 ), or by agreeingwatch commercials to subsidize thecost of downloading shows (Figure 6 ).

Furthermore, respondents under 35worldwide are more likely to say theywould enjoy watching programming ontheir PC (Figure 7 ) and are also morelikely than those 35 and older to saythey would enjoy watching program-ming on a mobile device (Figure 8 ).

Catching the up-waveThe under-35 lead the way to future services.

Figure 4: Proportion of consumers globally who found a feature of

expanded television service compelling

60%40%20%0% 100% 80%

55+

45-54

35-44

25-34

<25

Consu

mer

Age

Total Audience

62%

75%

77%

81%

81%

74%


The under-35 demographic is in the vanguard when it comes toadopting new content consumption patterns.


Figure 8: Proportion of consumers globally who would enjoy watching

a form of programming on a mobile device

60%40%20%0% 100% 80%

55+

45-54

35-44

25-34

<25

Consu

mer

Age

Total Audience

13%

25%

31%

37%

48%

37%

Figure 5: Proportion of consumers globally who would opt for any form

of payment (excluding advertising) for downloading TV shows

60%40%20%0% 100% 80%

55+

45-54

35-44

25-34

<25

Consu

mer

Age

Total Audience

29%

34%

39%

43%

45%

37%

Figure 6: Proportion of consumers globally who would opt to pay nothing

but watch advertisements within the program, for downloading TV shows

60%40%20%0% 100% 80%

55+

45-54

35-44

25-34

<25

Consu

mer

Age

Total Audience

24%

29%

33%

39%

42%

33%

Figure 7: Proportion of consumers globally who enjoy watching a form

of programming on their PC

60%40%20%0% 100% 80%

55+

45-54

35-44

25-34

<25

Consu

mer

Age

Total Audience

46%

56%

60%

65%

74%

61%

As Figure 9 shows, over a third of consumers are watching more than sixchannels and programs every week —with one in eight watching more thanten of each. People are not simplychoosing a channel they like and thenwatching the programs that air on it.Instead, they are switching to newchannels to get to their chosen programs. These behavioral changesherald further challenges in the futurearound customer service — as describedin the accompanying box-out.

A similar tendency for consumers tovalue content more than channels isevident in their attitudes to choosingnew technologies and devices for consuming content. Rather than wanting to switch wholesale to a new

type of device and consume whatever it delivers, consumers are looking topick the device that best suits the specific content they want to consume.So the actual content — the type orgenre of programming — that they are seeking to consume impacts thechannels where consumers expressinterest in viewing it.

In terms of content/device combina-tions, consumers have already devel-oped clear ideas about what type ofcontent fits best on which alterativedevice. They are most interested in:

• Receiving news and information via mobile device

• Watching full-length television programming on the PC.

The ranking of their content prefer-ences between the PC and mobile platforms are summarized in Table 1.Consumers are keen to see full-lengthTV programs via their PC, while theimmediacy and portability of mobilemakes it more suited to public serviceinformation such as news, and to user-generated content. However, the moststriking trend is the impact of age onconsumers’ eagerness to use alternativeplatforms, with younger consumers universally ahead in terms of willingnessto consume content over PC or mobile.

Loyal to content, not channelsWhile young people are leading the migration towards new modes ofconsumption, a characteristic of all consumers — regardless of age — is that they select content based on content brand, rather than on thebasis of channels.


Figure 9: Relationship between channels and programs

Number of TV channels watched

Number of programs watched

30%20%10%0% 40%

1 or 2 channels1 to 2 programs

3 channels3 programs

4 or 5 channels4 to 7 programs

6 to 10 channels8 to 12 programs

<10 channels<12 programs


The rising challenge of customer service and insight

As consumers migrate to new forms of content consumption, it will be criticalfor providers to ensure that they are not only provided with offerings that work,but that they are fully supported with the advice and help they need — whetherthey are searching for specific content or simply trying to make the service work.This need will become all the more pressing and challenging as providers roll outofferings across different platforms in a range of geographical and infrastructuralenvironments.

Whatever the local environment, consumers will have little patience with offeringsand channels that fail to deliver both the content and the positive user experiencethey expect. At the same time, to make their services a commercial success in different locations, providers will need to focus on understanding how consumersof various ages and in different geographies decide which programs to watch onwhat platforms. They must then provide those target consumers with the services,help and guidance they need to find the right content via the right device.

“There will be an increasing schism between the high-end network production, meaning prime-time, and low-cost, digital material produced in collaboration with users.” UK Television executive,Accenture 2008 Global Content Study

Table 1: Consumers’ content/device preference, globally

Mobile

Public service info

Content I create

New content not normally on TV

Full TV show episodes

Program highlights

Shortened versions of shows

PC

Full TV show episodes

Public service info

New content not normally on TV

Content I create

Program highlights

Shortened versions of shows


Recent events have already highlightedsigns of the emerging alignmentbetween particular forms of alternativeconsumption and specific content genres. For example, in March 2008NBC Digital Entertainment announcedmore viewers than ever before werewatching entire online episodes on its NBC Rewind video player, with 92 percent of users who start an NBCvideo watching the whole episode.

Young consumers vote for on-demand over live content

A further factor in the content/devicedecision is between content consumedlive or on demand. Here, younger consumers under 25 are again setting the lead, expressing a greater prefer-ence than older people for consumingmany types of content on demand (see Figure 10). Similarly, fewer youngerrespondents prefer live content whencompared to older people.

To date, on-demand has not yetemerged as the clear winner over content viewed live. But the patternsemerging in our research findings, driven by the youth, make it clear thaton-demand content is going to becomemore important over time, and that the linear schedule will become correspondingly less important.

While younger consumers are leadingthe trend towards on demand, consumers of all ages say there is a lot they do not like about live TV.These points of dislike suggest that all consumers will ultimately movetowards favoring on demand, redou-bling the momentum towards ondemand consumption. As Table 2shows, advertisements lead the way interms of the elements people most dis-like, followed by the inability to rewindand the restrictions of linear schedules.However there are significant localvariations — with consumers in Mexico,for example, being the most relaxed

about advertisements, while those inSpain dislike them the most.

In terms of how people will pay for shows that they consume, our consumer research reveals a familiarparadox. As we have just seen, respon-dents cite advertisements as the mostdissatisfying part of watching live TV —but the single most popular choice as a way of paying for downloading TVshows from a digital service is byagreeing to view adver-tisements inthe programming. This advertising-based option is favoured by 33 percentof consumers, followed by a variety offinancial payment options includingpaying a monthly fee for unlimiteddownloads (19 percent), paying for a season of shows (13 percent), perepisode (5 percent), and per network (4 percent). As we mentioned earlier,younger consumers are happier thantheir older counterparts with the idea of having to make any form ofpayment for digital content.

“All the networks are looking to ads to create revenue from new digitalmedia, as seen with Hulu and ABC.com.” Bruce Rosenblum, President, Warner Television Studios


Figure 10: Consumers’ on-demand viewing preferences

0% 30%

Sporting events

Game shows

News

Lifestyle/cooking/home

Soap opera/serials

Sitcoms

Dramas

Under 25

All

Reality programs

20%10%

Table 2: What consumers dislike about watching “live” TV by geography

Combined Brazil France Germany Italy Mexico Spain UK US

Commercials 64% 50% 63% 57% 68% 49% 73% 65% 59%

Can’t rewind

Can’t watchwhen I want

Content notappealing

Can’t watchaway from home

Can’t interact

40% 48% 38% 39% 37% 30% 47% 40% 36%

38% 40% 37% 37% 35% 22% 50% 36% 30%

13% 40% 14% 14% 8% 16% 17% 14% 11%

8% 20% 8% 7% 12% 17% 10% 5% 6%

7% 29% 3% 5% 13% 11% 10% 4% 5%

Can’t rate 7% 29% 4% 5% 11% 8% 12% 3% 3%


A diverse and multi-polarworld of consumers

As we have described, one of the clearest findings of our research is that younger consumers worldwide are leading the migration towards new forms of consumption. However,our study also reveals clear geographicvariations in terms of consumer tastes,expectations and aspirations.

These variations align closely withAccenture’s concept of the multi-polarworld. This encapsulates a majorreshaping of the world economic order,reflecting the rapid rise of developingnations onto the world stage, and thecollapse of the traditional clear dividebetween developed and emerging

countries. It is a world in which globaleconomic activity, spending power,innovation and capital flows areincreasingly dispersed across the world.

One of the defining characteristic ofthe Multi-Polar World is the emergenceof an additional billion-plus high-spending, aspirational, middle-classconsumers into the global marketplace.These new consumers tend to beyoung, ambitious and early adopters ofnew technologies and devices. In ourresearch in Mexico and Brazil, as else-where, it is young consumers who areleading the demand for and adoptionof new modes of consuming content.These responses are often influencedand shaped by the offerings and infra-structure available in each country.

Figure 11a: Consumerinterest in MobileUnited States 23%Mexico 66%Brazil 51% United Kingdom 31%France 26%Germany 25%Italy 44%Spain 41%


Figure 11b: Consumerinterest in PCUnited States 50%Mexico 66%Brazil 59% United Kingdom 57%France 61%Germany 55%Italy 66%Spain 75%

Figure 11c: Consumerwilling to pay downloadUnited States 28%Mexico 75%Brazil 46% United Kingdom 35%France 42%Germany 26%Italy 50%Spain 42%

“People want content more than ever… Quality is more important than ever, because the marketplace is more ruthlessly competitive. Options are not merely one click of the remote away; devices undreamed of a few short decades ago are at least as tempting as a change of the channel.” Rupert Murdoch, Chairman, Newscorp


A world of variety

Some of these key variations in consumer responses across the worldare summarized in Figure 12. Crucially,these demonstrate that the pace and nature of the ongoing change in consumer tastes, expectations and aspirations varies in different geographies worldwide, often reflecting differences in local offerings and infrastructure, especially in emerging markets.

For example, when our consumersworldwide are asked whether contenton demand is one of the most compelling features of an enhancedtelevision service (Figure 12), Brazilianconsumers are the most positive inevery age-group, reflecting their highlevel of dissatisfaction with theirexisting television experience.

Similar influences from local offeringsand infrastructure are also evidentwhen we ask consumers in varyinggeographies how many programs they currently watch each week onalternative devices. As Figure 13shows, young French consumers arethe most active watcher of content onnew devices, while Italians of 35–44are leaders their own age group, andolder Brazilians have yet to catch on.

Such findings underline the fact thata one-size-fits all approach to digitalservices will not work — and thatproviders must factor local conditionsand behaviors into service design androll-out, alongside the content genreand type of device.

Figure 12: Proportion of consumers saying content on demand is one of the most compelling features of an enhanced television service

80%

60%

40%

20%

<25 45-5435-44 25-34 55+Age of respondents

Figure 13: Number of programs watched in a typical week on alternative devices –by age and geography

<25 45-5435-44 25-34 55+Age of respondents

Brazil

France

Italy

Spain

United Kingdom

Germany

United States

Mexico

Average

Key60%

40%

20%

The overall message is clear: our researchpaints a picture of a diverse, consumer-led, multi-polar world,where overarchingtrends and strategiesmay be global, butlocal executionrequires local knowledge andawareness.


Given the findings of the AccentureGlobal Broadcast Consumer Survey2008, what steps should companiesacross the media, communications,technology and retail sectors be taking now to ensure they are positioned for high performance in tomorrow’s global consumer marketplace for digital content? Our research and industry insightshave enabled us to identify the keystrategic mindset that high perfor-mance companies in this space willneed to possess, together with threecore attributes that will determinehow successfully they execute andrealize their chosen strategic agendain the evolving multi-polar world.

A shifting balance…

Throughout our findings, the clearestdynamic among consumers globally is their absolute demand for controlover their viewing experience: agreater ability to watch what theywant, when they want, via the devicethey want.

Power has already shifted substantiallyto the consumer, and will continue todo so. Linear TV is not dead — indeed,it will be a very long time before thishappens — but, as our study makesclear, non-linear consumption is onthe rise, and is increasingly where consumers’ interest and excitementare focused. This transitional phase ischaracterized by the current blurringof boundaries around what constitutesa TV experience. Catch-up viewing viathe PC? YouTube clips on a mobile?Self-generated movies on an iPod? It actually doesn’t matter whetherthese are categorized as televisionexperience. What matters is that consumers want them.

…involving three key factors

As consumer preferences continue tochange, and as their collective powercontinues to grow, our research confirms that companies trying tomeet, capture and monetize consumerdemand for digital content anywherein the world face a complex three-waybalancing-act. The three factors thatthey must reconcile are all distinct yetclosely interrelated, each exerting asubstantial influence on the other two.The three factors are:

• The content genre • The consumption device• The infrastructure and offerings

available in the local geography.

Any content-based strategy in anymarketplace across the world will onlysucceed if it takes these three factorsinto account. And each of the threefactors has a significant local element.For example, will the content genreplay well with consumer tastes in thelocal marketplace? Is the consumptiondevice widely available and suited tolocal lifestyles and budgets? And is the

Achieving high performance in the emerging media landscape


“Change inevitably takes longer than you think to happen, but when it happens, it’s more profound than you could have imagined.”UK television executive, Accenture 2008 Global Content Study


local network infrastructure sufficientlydeveloped to deliver the content inhigh quality to consumers via the tar-get device?

Thinking global, acting local

In our view, this means achieving thissuccess will require a strategic abilityto think globally and act locally —what we term a ‘glocalized’ capability— across multiple devices and contentgenres/formats. Given the fast-movingnature of consumer demand world-wide, flexibility and speed of develop-ment, launch and response will beequally critical. So companies willneed the operational and executionalability to streamline R&D, bring newproducts to market quickly, and scaleup fast when something takes off.

These attributes must be delivered inthe context of the multi-polar world —where innovation and consumers areincreasingly dispersed around the world. On innovation, it is no coin-cidence that major content producers are currently making aseries of acquisitions in emergingmarkets, seeking access to innovation,talent and content that they can both leverage locally and recycle to developed and emerging marketsworldwide. And in terms of consumers, the combination of rising user spending-power, decliningcosts and advancing technology ismaking it ever more viable and cost-effective to target identifiableniche groups of consumers, be they theIndian diaspora in the UK or Hispanicsin the US. Here again, there are majorcross-border opportunities in themulti-polar world.

Content innovation: two current examples

There are several examples of major content companies innovating with newapproaches to content.

In February 2008, US media conglomerate The Disney-ABC Television Grouplaunched Stage 9 Digital Media, which will focus on creating original short-form programming, blending creativity with superior production quality. The studio's experimental new content premiered with the comedy seriesSqueegees in a co-exclusive premiere on ABC.com and YouTube, with the initial run sponsored by Toyota.

And Warner Bros. TV says it is creating its own ad-supported channels, whileits Studio 2.0 operation, which produces short-form videos for broadband and mobile, is working on more than 20 projects at a total cost less than that of an hour of a broadcast network drama.

“Participation with the audience for content companies will be unrecogniz-able in the next five years. There's a whole kind of user generated transfor-mation underway.” UK television executiveAccenture 2008 Global Content Study


Taking all these factors into account,here are Accenture’s four steps tofuture high performance for mediacompanies:

Think global and act local, applyingflexible ‘glocalized’ management ofthe three-way balancing-act of con-tent genre, consumption device, andlocal infrastructure/offerings. Strikingthe right balance requires companiesto have the technology in place toknow their customers and their habits,aspirations and expectations. Thisinformation must then be applied toensure that the right consumers aretargeted with the right content at the right time and place, and via theright device to suit both the type ofcontent and local tastes and lifestyles.This comes down to knowing the customer, meaning that companiesneed to ensure they have the ability

in each marketplace to monitor and understand consumer behaviorthrough sophisticated CRM techniques.

Build a robust capability to productize and monetize contentmanaging rights, technology and content formats. This must be donerigorously to ensure that content canbe repurposed, packaged and bundledquickly and effectively across differentdevices and geographies. New mediumsneed to be well positioned for deliveryin response to changes in consumerdemand, the available infrastructure,and new devices. Companies need toleverage technology better to buildthe ability to understand their rights.

Implement the right product creationand delivery infrastructure, includingflexible production, post-productionand distribution capabilities andcapacity, while seeking out andexploiting opportunities to streamlineand automate the production process.

Create differentiated customer service capabilities. Consumers worldwide want access to contentanytime, anyplace, and they want it to work first time. Customers are also increasingly demanding of service quality and consistency. In the multi-screen media environmentof the future, effective and responsivecustomer service will be more impor-tant — but even more challenging to deliver. Crucially, the challenges will vary depending on the legacycapabilities that each participant inthe value chain brings to the party.

Four steps to high performance“Digital media has levelled the playing field, opening doors for anyoneto have immediate and unlimited access to an audience. But content must evolve with the platform.” Mark Pedowitz, President, ABC Studios

For example, media companies havehistorically been business-to-businessoperations, and have not needed tobuild sophisticated customer service functions. In contrast, a mobile communications company already has a strong customer service capability. In the multichannel world,the mobile operator will need toimprove its focus and capability tosupport users of content-rich servicesmore effectively, while the mediacompany will need to start building or sourcing such a capability if it isgoing to be successful in interactingdirectly with the consumer.

The quotes from industry leaders inthis report — some drawn fromAccenture’s 2008 Global ContentStudy — underline the extent to whichconsumers are now in control of theagenda. The high-performance mediacompanies of the future will be thosethat enable consumers to exert thiscontrol and thereby enjoy the contentthey want through the right device.We believe the four steps above willenable a business to do this effectively,consistently — and profitably.

“What do audiences want? In all areas of television they hunger for surprise.” Stephen Poliakoff, leading screen writer


Copyright © 2008 Accenture. All rights reserved.

Accenture, its logo, and High Performance Deliveredare trademarks of Accenture.

About the Accenture ConsumerBroadcast Survey 2008

The study was fielded for Accentureby Opinion Research Corporation(ORC) at the beginning of 2008. The results are based on telephoneand on-line interviews.

All efforts were made in good faith tosecure a balanced and representativesample of respondents across allcountries.

Author: Ross Sonnabend

Contributions: Julia Martin Wrightand David Wolf

About the Media &Entertainment Group

For more information on this studyand what Accenture can do to helpyou reach high performance in yourconvergence business, please contact:

Greg DouglassGlobal Managing DirectorAccenture Media & Entertainment

David WolfGlobal Digital Transformation LeadMedia & Entertainment

Websitewww.accenture.com/mediaandentertainment

About Accenture

Accenture is a global managementconsulting, technology services andoutsourcing company. Combiningunparalleled experience, comprehen-sive capabilities across all industriesand business functions, and extensiveresearch on the world’s most success-ful companies, Accenture collaborateswith clients to help them becomehigh-performance businesses and gov-ernments. With 178,000 people in 49countries, the company generated netrevenues of US$19.70 billion for thefiscal year ended Aug. 31, 2007. Itshome page is www.accenture.com

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Television in transition