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Direct to consumer is the new approach

We have been accustomed to hearing that content is the crucial factor for any media venture in the digital world, but the reality is far more complex. No longer is it enough to develop content solely to attract eyeballs. With the supply of media growing by leaps and bounds, there is simply too much competition for businesses to survive on the experience of the casual ‘eye-ball’ and other low value audiences.

Now, you must create fans: active users united by shared ideas, interests, and experiences, who will return every day to your brands and properties.

Improvements in content search, recommendations, and personalization, can drastically unify and improve the user experience. Better methods of content discovery enable every user to tailor their experience, and to consume content and interact with their service provider in a way that makes the most sense within the context of their lifestyle. Providing the best user experience is becoming key to success.

As result we are witnessing an important shift in the E&M industry’s rapid transition to a direct-to-consumer world. Distributors are creating original TV programming and content creators are increasingly building direct relationships with consumers.

Direct-to-consumer business models enable control over the user experience

The shift in user experience in the video market has been considerable and accompanied by large investments. Companies like Netflix have created a strong fan base by investing in technologies and content and by attaching their name to hit after hit. They have truly changed the market, and watching video content wherever and whenever one likes is becoming the norm. Telecoms, broadcasters and producers are all working hard to maintain or win control over the customer in this changing market. Instead of extending their license agreements, content producers such as Disney are launching competing D2C platforms themselves, forcing Netflix to invest in its own content. At local level, Dutch broadcasters are collaborating on local OTT services. NPO, RTL and SBS have joined forces, initially by offering a joint VOD platform and more recently by launching live TV, bypassing local telecoms.

All in all, only great content will not get you very far. It’s crucial to provide the best user experience possible and to engage your audience. To do so you have to optimize your content discovery strategy and use the available technology to build the best UI. Don’t underestimate the role of metadata in this as it’s the ingredient to be able to provide the best user experience.

Contact us to get more insight and useful tips.

 

Bron: Entertainment & Media Outlook 2017, PWC

By: May Soon Ismail

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