The future of Media Entertainment in TV

From XR to personalized content recommendation and ad-supported video

In recent years, digital disruption has upended traditional business models within the media and entertainment (M&E) industry. Content consumption across media channels, devices, and demographics is on the rise. Due to unprecedented Internet usage and adoption of Internet-enabled devices, consumers are now at the heart of a digital ecosystem in which they actively create, distribute, and consume content. 

The digitalization of the media and entertainment industry has been driven by changing consumer behaviour and expectations, especially among younger generations who demand instant access to content, anytime, anywhere. According to research from PwC, virtual reality (VR), over-the-top (OTT) video, and Internet advertising will see the most annual growth in the near future. 

During the year 2020, major networks and studios are understanding that the power of selling direct-to-consumer (DTC) streaming services allows them to engage directly with their audience in a way that’s not possible through third-party distribution platforms. Disney for example realized that owning the entire customer experience takes on a special imperative. After all, this is the company that’s built on creating immersive experiences for generations. 

Deloitte’s Digital Media Trends Survey found that consumers are willing to pay for an average of only three streaming video services, and as major networks and studios are withdrawing content rights from third-party streaming platforms, the ones that offer the best and broadest content libraries will likely own the inside track to success. 

One method of getting there is “re-aggregation” (or re-bundling) of streaming offerings. Providers have an opportunity to offer highly customized packages of content that, in addition to video, could include streaming of music and games, as well as the option for customers to accept ad-supported video: advertising in exchange for “free” (non-subscription) content. 

One of the additional advantages of ad-supported video is the advanced advertising capabilities that come with it. While this isn’t entirely new, with the combined power of AI and big data analytics, these offerings will become more intelligent, helping to promote effective measurement and campaign management. 

Another big change will be the way media is consumed. Screens in private use are already highly diverse; in terms of size alone, they range from smartwatches to huge flatscreen TVs. And with many innovations on the way, the number of different formats and device types will increase significantly in the coming years. This includes virtual and augmented reality glasses, folding screens, 3D holograms, and direct projections, e.g. onto car windscreens. Consumers will be able to use these displays to control their appliances as much as for enjoying media content. The digital world and the physical world are now being combined into a merged reality. 

Optiva Media Research and Innovation (R&I) is also facing the challenges and opportunities of these radically new technological developments. We are working to adapt the latest AI-based technology to automate as many tasks as possible, significantly reducing operating costs in the medium to long term. Optiva Media R&I also offers more competitive infrastructure, finding innovative ways to use our core technologies while building the framework to unleash the potential of 5G. The decisions we make today will have a major impact on users, companies, and the economy in the future.

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