
This year's Outlook focuses on a 'golden age' for the digitally empowered consumer, and the new collaborative E&M industry emerging from the global recession.
By 2015, we believe that most E&M companies will have digital collaboration infused into their DNA, and that their success will lie in a focus on three key areas: the empowered consumer, the involved advertiser, and transforming their business for digital by reshaping into a Collaborative Digital Enterprise.
Today’s empowered consumer is in a “golden age”, with unprecedented choice of content, often accessible for “free”. But the industry cannot survive if content cannot be monetised. Last year, we cited quality, convenience and experience as three key factors in encouraging consumers to pay. We are now adding two more: “participation”, by enabling people to actively shape their content; and “privilege”, such as special offers and earlier access.
To monetise content engagement, newspapers are implementing online paywalls, and movie studios are trying out new ways of "windowing" releases. Various models are also being tried for how people pay, including freemium, micropayments, and selling bundled multi-platform access. There is also a shift towards selling streamed content on a “rented” basis. The key is to collaborate flexibly and mould the payment model around what the consumer wants.
Download Engaging the empowered consumerAs content providers apply creative thinking and innovation to drive digital revenues from consumers, so advertisers and agencies have become increasingly sophisticated in seizing the new opportunities brought by digital. To do this, they are collaborating, experimenting and innovating with E&M companies and other participants to embed and target their brands.
A key focus is using mobility and social networking to reach consumers directly, turning social media into social intelligence. Filmed entertainment companies are experimenting with paid-for streaming on social networks, and TV and social networking are increasingly being integrated as a single offering and experience. Meanwhile advertisers are looking to the next stage, harnessing location-based marketing and addressable advertising to target consumers.
Download The involved advertiserThe dynamics outlined above are taking E&M companies towards a new operating model—the Collaborative Digital Enterprise, or CDE—designed for an environment of constant digitally driven disruption and opportunity. Migrating to the CDE model will enable companies to collaborate continuously along their entire value chain, while keeping costs down.
To do this, E&M companies will need to master data mining and “future-proof” their content against changing platforms. These capabilities will require the right balance of creative and digital skills, a robust end-to-end digital workflow, and an ability to manage ongoing regulatory challenges.
In 2011 we are seeing collaboration emerge in virtually every E&M industry relationship—including with consumers, advertisers, and platforms. The Collaborative Digital Enterprise will escalate and elevate this collaboration into a sustainable and interconnected collaborative digital ecosystem. By 2015, most E&M companies will have digital collaboration infused into their DNA.
Download Collaboration and the new normal
Download The collaborative digital enterprise
Marcel Fenez, PwC's Global leader, Entertainment and Media, talks about the 'golden age' for digital consumers
"2009 seems like 1999 when it comes to technology. It's only two years ago but it feels like the stone ages." Gary, 30, New York
"I would readily pay for US TV series, but they are not available here legally." Karan, 19, Mumbai
"I'm only prepared to give away personal information to certain sites, but it has been worth it for special offers and news." Bruce, 60, Johannesburg
"If I don't have to pay, I won't. So I'm still spending more on traditional content than digital." Julian, 23, Madrid
"When I pay for content I want to be able to load it to every device and listen to it as often as I like." Alex, 32, Berlin
"When I read about brands on micro blogs, it feels like talking to my friends face to face. It feels closer." Ruan, 24, Shanghai