Wednesday, April 19, 2006

 

Team Project_TV Industry_Draft 1





1) Shift of Industry Capabilities:

Tivo’s set-top box (DVR) began a revolution in the TV industry. Viewers no longer need to sit in front of the TV at a certain time for a particular TV program. According to a study conducted by Forrester, the broadband internet penetration of North American will surge from 29% in 2004 to 62% in 2010 with near 71 million households in the U.S. having broadband access. In addition, multiple electronic devices – the mobile phone, the video MP3 player, the HD TV, the laptop, and other hand-held devices available for consumers to choose the way they want to watch TV in order to cope with the always-on-the-go life style. Due to all these factors, the IPTV is getting market’s attention, and will become the central media in 2010 for people to view the TV programs. Moreover, Mobile TV will be getting some market share (According to Informa Telecoms & Media, the worldwide mobile TV will be worth $8.4 Billion.).

The shift of time and place in the way people consume TV, as well as seamless connection between multiple devices, change the industry from simply push to pull. Because of this shift, content providers and publishers will increasingly focus on providing diverse content in order to fit different devices and stay competitive. In addition, because of the Internet, it allows independent video makers to distribute their shows. How do customers face the abundant choices of TV content and how does the market serve the long tail market? Our team suggests the information aggregator layer (recommendation/ indexing system) will become the most important capability layer in 2010, and capture the most value in the TV industry.



2) New Revenue Models:

Technologies make it possible for people to skip advertisements, so more and more consumers are willing to pay for the TV they watch. As a result, the combination of free and premium content is co-existing today, and in 2010, money from IPTV subscribers will become a significant part of businesses’ revenue stream. Moreover, the competition between phone companies and cable companies, there will be a package bundling all services that provide customers one single price for telephone, internet connection, TV on-demand, and online-video games to grab the biggest pie possible.


3) The Biggest Winner in 2010:

Our team looks from the perspective of Walt Disney (the tools & content provider, and publisher) and intends to figure out who would be the hub in 2010 for WD to build the networked partnerships. From our capability analysis, we expect that the company who can most understand consumers’ viewing behaviors and preferences, and provide the most slick and robust indexing system will be the hub in the industry. Because of its business model and search technology, Google owns the most intelligence about consumers. Therefore, Google will aim to be the hub for the TV industry, and WD needs to establish relationship with Google and other important information aggregators as well.


Technologies make it possible for people to skip advertisements, so more and more consumers are willing to pay for the TV they watch. As a result, the combination of free and premium content is co-existing today, and in 2010, money from IPTV subscribers will become a significant part of businesses’ revenue stream. Moreover, the competition between phone companies and cable companies, there will be a package bundling all services that provide customers one single price for telephone, internet connection, TV on-demand, and online-video games to grab the biggest pie possible.


Media & Entertainment Team: Aaron, Corrin, Dave, Dominic, Taylor

Comments:
Motivate a broader storyline upfront on why the network era shifts are important. Then lay out your arguments; conclude with key trends to watch; key moves that could accelerate or slow down the shift to the network era. What key alliances and partnerships are required to win in this new market? Good luck.
 
The latest Economist issue (April 22-28th) has a survey on the New Media that may of interest and use for your work.
 
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