Report: Relevant, personalized content crucial to growth of digital video

By Jim O'Neill on Jun 03 2015 at 9:15 AM
Report: Relevant, personalized content crucial to growth of digital video

Video consumers want relevance and convenience, and are adopting delivery platforms that offer attractive content, easy discovery, social community and a personalized experience.

A new study from PwC contends those consumers – regardless of where they are – see “no significant divide between digital and traditional media.”

“What they want is more flexibility, freedom and convenience in when and how they consume their preferred content,” wrote the researcher in its Global Entertainment and Media Outlook, 20015-2019. “(Consumers have) taken on board the proliferation of content and access options enabled by digital, and are exploiting it to seek more flexibility and freedom – for which read ‘choice’ – in what, when and how they consume.”

PwC forecast worldwide entertainment and media revenues to grow at a compound annual growth rate (CAGR) of 5.1% over the coming five years, to $2.23 trillion in 2019, compared to $1.74 trillion in 2014.

The report said revenue growth will vary, but noted, “it’s apparent that when consumers around the world become connected their behavior becomes more similar.”

Still, the quality of the available infrastructure for consuming content and the ability to create relevant, personal experiences that are in line with local preferences remains crucial.

“Given the wide variations in consumer preferences, the challenge for entertainment and media companies is to blend data insights and consumer intuition to maximize the value of the experiences they offer,” said Marcel Fenez, PwC’s Global leader, entertainment and media. “The prize for achieving this is heightened by the fact that the consumer has never been more up for grabs than today.”

The reports singles out consumer desire for flexible, on-demand delivery of high-quality original programming to any device and binge viewing as keys to growth for OTT services, and as challenges to incumbent pay-TV services.

That challenge, it posits, will lead to a continued decline in North American subscription TV penetration to 78.1% in 2016 from 79.8% in 2012.

Stay tuned.

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