The Rise of the Digital Multi-Tasker - KPMG's Digital Debate
KPMG's Digital Debate
David Elms, Partner, Head of Media, KPMG in the UK
People are adapting to consuming media much more quickly than we could have imagined. As consumers, we have never had access to so much content on demand, and this trend shows no sign of slowing down with the explosion of mobile media through devices such as tablets and smartphones.
So what does this changing eco-system mean for companies whose business it is to make money from content? How do traditional media companies such as newspaper groups and broadcasters generate revenue in a world where consumers expect to get digital content for free?
I believe the answer lies through companies building a genuine understanding of consumer's online behavior.
KPMG recently conducted an online survey of 9,000 consumers in 9 different countries to understand how global consumers are accessing media and digital content.
The fact is that consumers are willing to pay for content – but it depends on how they are accessing the content, and the type of content they are looking for. The survey found that consumers are accessing more media than ever before. It's not that digital media is replacing traditional media – we are just consuming more of all types of media. Consumers are becoming digital multi-taskers.
A large reason for this is in the "second screen" concept – the ability to view multiple devices at any one time. London's Olympic Games were named by many as the "digital Olympics" – because consumers were able to watch the games, look up details of their favorite athletes and share clips and comments all at the same time.
As each consumer is different, so is each content provider. Organizations need to get a better understanding of how each consumer interacts with their content. They need to be flexible and be able to respond to market changes. Only then can they establish an effective business model that allows them to generate revenue from their content, no matter what device or channel they are using.
Traditional media companies cannot wait for a silver bullet, or sit by and wait for their competitors to come up with the answer. Because the right answer for one will not be the right answer for another. And because, to really stay ahead in this market, the power lies with understanding what your consumers are looking for, and giving it to them – before they even know they need it.
KPMG's Digital Debate
Paul Wissmann, Partner, Head of Media & Telecommunications, KPMG in the US
Digital distribution channels are transforming the media sector, forever changing the traditional content landscape. The vast availability of content on demand via mobile devices and over the internet has increased the consumers' appetite for content and their expectations as to immediacy. It has also brought many new players into the market.
Traditional media companies need to change or fail. Consumers have been given a taste of these new possibilities and they like what they see.This is creating greater demands for innovation and quicker response. Media companies will have to make it clear how they are meeting customer needs. They also have to address the impact of digital transformation on their relationship with the content owners.
As use of DVRs and streaming options become common, consumer preferences are driving change. While traditional media is holding up well to the disruption, the impact can be dramatic in areas where over the top delivery is starting to make some inroads.
Cable companies, for example, have so far done a pretty good job of reacting to the challenges of some of the over the top content providers to maintain their subscriber base. But as more new players enter the market (especially well funded ones), it is going to be harder and harder to keep ahead.
To change from one pay tv provider to another is currently a hassle for consumers. The problem for over the top players is there is not that all encompassing product that effectively replicates the standard cable or satellite package. But when that problem is solved, then the over the top players can truly compete with the traditional providers, making it harder to hold onto subscribers.
I can see the possible winners falling into one of two groups: over the top players who have the resources to build a deep content base and also produce original content of their own. Or content owners themselves who come up with a direct-to-the-consumer model that generates sufficient revenue.
KPMG's Digital Debate
Paul Wissmann, Partner, Head of Media & Telecommunications, KPMG in the US
What does the impact of the explosion of mobile devices mean for advertisers? With the availability of content over multiple channels, consumer attention is being pulled in every direction. Adapting in this new environment is a challenge for the advertising world. As digital multi-tasking becomes more prevalent, the advertising industry needs to rethink its model for pricing and delivery.
Advertisers will need to figure out how to provide seamless campaigns where they target the consumer in all media channels at the same time.
I also believe digital multi-tasking promotes a shorter attention span that will need to be taken into account. As a result, shorter more interesting advertising will rule the day. It is going to be an experiment and there will have to be failures in order to find success. The winners will be those prepared to take risks and learn from their mistakes.