The last Global entertainment and media outlook produced by PwC revealed some interesting insights. As media consumption fragments across devices, consumers increasingly want personalised experiences: their content on their chosen devices when they want it. This move to ‘my media’ can be seen in ‘cord-cutting’ where consumers abandon their pay TV subscriptions and instead access the content they want via cheaper, Internet-based content services. The cord-cutters are now being joined the ‘cord-nevers’, a younger generation who would never think of paying for TV. A further manifestation of ‘my media’ is consumers’ growing use of the ‘second screen’smartphones and tablets to comment on and share the experience of TV content with friends, often via social media.
Understanding new consumers is key
Over the next five years and beyond, all E&M businesses will increasingly engage with a new and more diverse global customer base, with different needs and expectations. According to the OECD, by 2030 two-thirds of the world’s population will be ‘middle class’, with a daily expenditure of US$10 to US$100. This new middle class will appear primarily in Asia Pacific-and the E&M industry needs to understand its needs and motivations to capture its spending power.
Economic growth + new middle class + mobile = ongoing digital growth
Economic studies in emerging markets show consistently that rising mobile and broadband penetration boost economic growth. But fibre networks and next-generation mobile broadband services demands heavy investment. So telcos will have to partner with one another to reduce network costs, and collaborate with ‘over-the-top’ content players to roll out new services. Going forward, the E&M companies that seize a profitable position in the new digital ecosystem will be those with the speed, flexibility and insight to engage and monetise an ever more diverse global base of connected consumers y delivering personalised, relevant, and ultimately indispensable content experiences.