2015: A video space odyssey — Value shifts in the TV and video ecosystem

Published: April 20, 2011

Executive summary

Changes in consumer behavior, driven by new technologies, are profoundly reshaping the TV and video ecosystem. Consumers will continue to enjoy video over traditional TV in large numbers, but most of the future growth in viewership will take place on new screens like PCs, tablets, and smartphones, and through new, nonlinear video formats. Social media will rise in importance for video as a place to talk about, share, and distribute content. As a result, companies in a wide variety of industries are viewing TV and video as an ever more important way to gain access to and control over expanding value pools that are converging in the rapidly evolving, overlapping and more competitive TV and video ecosystem.

The consequences of these changes are significant for the strategies of TV and video players, both to preserve their current value and to capture the new value that will arise. Competition is intensifying as companies in media, communications, and adjacent industries — e-commerce, games, and betting, for example — seek to grab their share. Meanwhile, those that provide the infrastructure for all this activity will face significant challenges — that is, unless they can leverage content, an increasingly valuable asset, to differentiate their core value propositions.

Ultimately, success in the new ecosystem will depend on several factors. High-quality content, and the rights to that content, will remain critical, as will the ability to aggregate and offer to advertisers the largest audiences possible. Players that can gain much deeper insights into their audiences’ preferences and consumption habits stand to benefit by offering greater value to advertisers. The growing complexities of the evolving ecosystem also place new emphasis on alliance and partnering capabilities — no single player, however strong it may be in its core business, will be able to succeed on its own.

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2015: A video space odyssey — Value shifts in the TV and video ecosystem