The end of TV as we know it: A future industry perspective

I picked this up via Peter Bates mentions a report recently published by IBM The end of TV as we know it: A future industry perspective

Peter says; cccording to a recent report the broadcasting industry is confronting unparalleled complexity, dynamic change and is under pressure to innovate. The authors consider that the market evolution hinges on two key market drivers: openness of access channels and levels of consumer involvement with media. For the next 5-7 years, there will be change on both fronts – but not uniformly.

The industry instead will be stamped by consumer bimodality, a coexistence of two types of users with disparate channel requirements. While one consumer segment remains passive in the living room, the other will force radical change in business models in a search for anytime, anywhere content through multiple channels.

The tech- and fashion-forward consumer segment will lead us to a world of platform-agnostic content, fluid mobility of media experiences, individualized pricing schemes and an end to the traditional concept of release windows.

The report considers that these behavioural differences that will lead to the "Generational Chasm" between the passive mass audience ("Massive Passives") and leading-edge users (divided into two sub-groups: "Gadgetiers" and "Kool Kids").

Given the influence of both segments in the 2012 forecast period, the authors consider that strategists must today work amid fragmentation, divergence and opposition in the market: to optimize across nascent and long-standing business models; across new and traditional release windows; with old and new content programmers; and with both IP and traditional supply chains.

This is the beginning of "the end of television as we know it" and the future will only favour those who prepare today. IBM offers six executive recommendations to get started:

Segment : Invest in divergent strategies and supply chains for bimodal consumer types. Identify, develop and continually refine data-driven user profiles in order to optimize product and service development, distribution, marketing messaging, and service migration. Tailor content, advertising, pricing and reach dynamically.

Innovate: Innovate business and pricing models by creating – not resisting – wider consumer choice with windows, bundles, pricing and distribution. Take risks today to avoid losing position long-term.

Experiment: Develop, trial, refine, roll-out. Repeat. Conduct ongoing market experiments alone and with partners to study "real life" consumer preferences. Invest in new measurement systems and metrics for the on demand world of tomorrow.

Mobilize: Create seamless content mobility for users that require on-the-go experiences. Ensure easy synchronization across devices and without user intervention.

Open: Drive open content delivery platforms to optimize content and revenue exploitation, and to create optimum business flexibility and network cost-efficiency. Position open capabilities to bolster digital content protection with consumer flexibility, and for plug-and-play business upgrades necessary in the fast-changing marketplace.

Re-organize: Assess business assets against future requirements. Identify core competencies needed for future competitive advantage. Isolate non-core business components for outsourcing or partnership. From an external perspective, reconfigure business to exploit market and financial levers to buy, build or team to future competitiveness.

Peter comments - This report is broadly in line with what with what we have been saying. However, creating new opportunities for aggregating content around communities of interest by those providing these new TV experiences could stimulate a more rapid up-take from users.

But what amazes me is that the marketing community on both sides of the fence still seems to be driving the car still looking in the rear-view mirror. Is it the DNA? There are some many more opportunities, revenue streams, ways to engage, deliver more value in this most fluid of worlds.

We want to curate our own consumption in increasingly sophisticated ways.

Whether it be Jeff Jarvis writing on his blog the last of the presses or Bob Garfield describing the chaos scenario of a post mass media world , Doc Searls or Dan Gilmour writing about how the internet changes everything, Rupert Murdoch describing himself as a digital immigrant and then buying myspace.com The reality is our digital world is growing and evolving around us, changing us, releasing us, connecting us.

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