Kevin Westcott is a vice chair and leads the US Technology, Media & Telecommunications (TMT) practice of Deloitte; as well as serves as the global Telecommunications, Media and Entertainment (TME) practice leader. Kevin has more than 30 years of experience in strategic and operational planning, as well as implementing global business change and technology projects for major telecom and media organizations. His industry experience spans film, television, home entertainment, broadcasting, over-the top, publishing, licensing, and games. Kevin is an author of Deloitte’s Digital Media Trends Survey a co-author of Deloitte’s Digital Media Maturity Model, and speaks regularly on media consumption trends.
Jana is vice chair and Deloitte’s US Telecom, Media and Entertainment (TM&E) sector leader. She is also a principal in Deloitte and Touche’s Risk and Financial Advisory practice. Jana has more than 20 years of experience in serving large, multi-national technology companies to help them address enterprise risk. She has leveraged her risk advisory capabilities to lead engagements for digital platform companies, helping them navigate evolving regulatory requirements and business transformation. Jana has built worldwide engagement teams to serve several Fortune 500 companies, across the Americas, Europe, Middle East, and Asia. As the US TM&E sector leader, Jana is focused on strategic direction and market eminence of the TM&E sector, and go-to-market strategies for Deloitte’s key businesses. Jana was formerly the Inclusion and Well-being leader for Risk and Financial Advisory and continues to bring inclusion and well-being into everything she does.
Chris Arkenberg is a research manager with Deloitte’s Center for Technology, Media and Telecommunications. He has 20 years of experience focusing on how people and organizations interact with transformational technologies. Chris is also an avid video game enthusiast, stomping the virtual grounds since the days of the 2600.
Billboard's 2022 Power List Revealed
Brooke Auxier is a research manager with Deloitte's Center for Technology, Media, and Telecommunications. Her research focuses on media, entertainment, and consumer technology. She has a Ph.D. in journalism from the University of Maryland.
Jeff Loucks is the executive director of Deloitte's Center for Technology, Media & Telecommunications, Deloitte Services LP. In his role, he conducts research and writes on topics that help companies capitalize on technological change. An award-winning thought leader in digital business model transformation, Jeff is especially interested in the strategies organizations use to adapt to accelerating change. Jeff’s academic background complements his technology expertise. Jeff has a Bachelor of Arts in political science from The Ohio State University, and a Master of Arts and PhD in political science from the University of Toronto.
Kevin is a senior manager in Deloitte Services LP and the sector specialist for the US Media & Entertainment sector. He has more than 20 years of systems, operations, and management consulting experience implementing business-driven technology transformation and digital modernization programs for clients in technology, media, and telecommunications, and the public sector.
The Revolution That Wasn't: How Digital Activism Favors Conservatives: Schradie, Jen: 9780674972339: Amazon.com: Books
This year’s Digital media trends survey revealed that media companies in the United States are now feeling more turbulence from the deeper currents shaping consumer behavior. After 15 years of growth, streaming video on-demand (SVOD) services have successfully unbundled video, lowered costs to consumers, and ignited fierce competition among providers. Top SVOD services are consolidating content and taking the competition for subscribers into global markets. But they face greater pressure to attract and retain subscribers who have grown savvier about their subscriptions and more cost-conscious.
In that same 15 years, screen-based entertainment has evolved beyond TV and movies. Streamers and studios are challenged to attract and retain younger generations who have grown up with smartphones, social media, and video games, which deliver finely tuned experiences that are social, interactive, and immersive. So, while SVOD providers may have disrupted TV and movies, the medium—and its business models—still looks much the same as it did when they were created 15 years ago.
Since then, social media has expanded and evolved dramatically. Social media services now deliver finely tuned and personalized feeds of images, video, music, news, gaming, and shoppable media to billions of users, all lit up by social networking and provided for free. Top services are adding new lines of revenue by becoming retail destinations and leveraging influencers and creator economies to reinforce engagement and purchasing.
The Lancet Commission On Diagnostics: Transforming Access To Diagnostics
Meanwhile, thanks to smartphones, competitive esports, and rich, Hollywood-level experiences that cast the player as the star, gaming has gone global and expanded across generations. Gaming may have started as an individual experience, but it is now highly social. And game companies have evolved to monetize many aspects of gaming, from subscriptions, in-game purchasing, and extensible games that operate more like services, to embracing the social experience of gaming with multiplayer, branded content, and virtual goods.
Although SVOD broke apart the cable bundle, since then, streamers and studios have mostly focused their innovation strategies on content delivery and licensing rights. Social media and gaming companies have been quickly evolving their business models and products, leveraging technology, and capitalizing on behaviors. This doesn’t mean all digital media must become social and interactive. But SVOD services should be aware that more audiences are finding entertainment, community, and even meaning, elsewhere.
This year’s study expanded beyond the United States: We also included the United Kingdom, Germany, Brazil, and Japan—areas where media and entertainment companies are competing for digitally mature audiences. Overall, the trends we’re seeing in the United States are echoed in these countries, with the same generational contours. Amidst a global pandemic that has constrained in-person activity, people and companies are being accelerated into digital life, setting the stage for the current excitement about the metaverse—where virtual spaces become common destinations for work and play. But these shifts were already in place before COVID-19. With millions recording themselves doing the latest viral dance moves, influencers driving sudden demand spikes for products, top musicians delivering other-worldly concert experiences to global gaming audiences, and virtual goods becoming valuable and scarce with non-fungible tokens (NFTs) and cryptocurrencies, digital life may be gaining on so-called real life.
Top 10 It Issues, 2022: The Higher Education We Deserve
Social media broke open the TV screen and made fame much more accessible. Gaming enables us to act in the movie. Media and entertainment executives—and especially those in SVOD—should be thinking hard about how people socialize around entertainment and how entertainment itself is becoming more personalized, interactive, and immersive. The business models that have brought them this far, and even the technologies they have relied on, may not carry them through the next wave of change.
Like TV and movies before them, SVOD companies have relied on the innate emotional and intellectual value of their stories to engage audiences and monetize their attention. But will people always value this kind of passive, lean-back-and-watch experience? That’s the big question. As more major media providers launch their own streaming video services, competition among them has heated up, just as their value proposition to audiences may be losing some of its luster.
As they pursue global markets, and as those markets mature, they may be facing the same challenge. For consumers, getting their entertainment through the fragmented SVOD landscape requires more effort and, increasingly, nearly as much money.
The Computer Revolution
Over the past two years, US consumers have become increasingly frustrated when they lose content to other services, have to manage multiple subscriptions, and receive poor recommendations.
These conditions lead to churn: when people cancel, or both add and cancel, a paid SVOD service. In the United States, the average churn rate has remained consistent since 2020 at about 37% across all paid SVOD services (figure 1).
It should be noted, however, that churn for a given service might be significantly lower than the overall average. In the United Kingdom, Germany, Brazil, and Japan, the overall churn rate is closer to 30%. (This number varies for each country, largely driven by subscription penetration and number of SVOD services.)
Digital Media Trends Survey Summary
People are attracted to SVOD by the content, but they often leave due to cost. Generation Z consumers are especially sensitive to services being too expensive. It costs money to acquire subscribers, so losing them too quickly can hamper providers’ ability to recoup their acquisition costs.
However, cancelling a service doesn’t mean they won’t return. One-quarter of US consumers have cancelled a streaming video service in the past 12 months and resubscribed to the same service, with younger generations significantly more likely to return (figure 2). In the United Kingdom, Germany, Brazil, and Japan, around 22% overall have churned and returned. Once again, the behavior is stronger among younger generations.
Why do respondents say they churn and return? Either a new season of their favorite show was released, they got a free or discounted rate, or content they wanted to watch moved to the service. Around a quarter of people across the countries we surveyed admit they routinely cancel and resubscribe to manage costs. In every country we surveyed, consumers—particularly Gen Zs and Millennials—are getting savvier about determining how much money they will spend on what content. As we have stated before, it looks like consumers are winning the streaming wars.
Lessons For The Next War From Russia's Invasion Of Ukraine: 12 Experts Weigh In
To retain more subscribers, SVOD providers are exploring ways to shift the value proposition in their favor. Offering flexible pricing options could be the most direct path. Among consumers in all
0 comments
Post a Comment