Five action points for content providers | KPMG | GLOBAL

Five action points for content providers

Five action points for content providers

With consumers still spending large amounts of time and money on traditional media, digital and traditional media will continue to co-exist for the next few years. Lessons learned from the mobile-centric emerging markets and from the behaviors we are seeing worldwide among media consumers need to be analyzed, understood and responded to. KPMG International has identified five opportunities for media, technology and telecommunications companies to embrace the challenges and find new ways of working together to generate more revenue.


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Understand your consumer

This is not as obvious as it sounds. Not all customers behave in the same way, and without properly understanding consumer's online behavior and preferences, media companies often end up playing to the lowest common denominator. This reduces the value of the content as it is less tailored and therefore less personally relevant to the consumer. Subsequently, businesses repeatedly fail to generate sufficient revenue from the content they are providing because they are not offering the media experience that consumers are looking for.

Create a new advertising model

The emergence of smartphone and tablet applications has enabled brands and consumers to form direct relationships, facilitated by outlets like Apple's App Store and Google Play. Today's advertisers recognize the power of digital information and want to understand prospects at a level far beyond mere demographics. Traditional media companies - such as high-end magazine publishers – cannot remain as mere intermediaries and have to give clients the kind of consumer metrics that facilitate one-to-one relationships.

Embrace the new world

For now at least, cable, satellite and digital terrestrial TV companies are holding up against online alternatives, and still generate significant advertising revenue, particularly from major events such as 'X-Factor', the Super Bowl and the Olympic Games. But traditional media companies need to continue to embrace digital and evolve their business models to ensure the strength of their positions is maintained.

Engage with digital multi-taskers

Technology companies can transform the 'second screen' experience to enrich both consumers and advertisers, by combining the reach of broadcast with the interactivity of online. Gaming consoles, set top boxes that interact with smartphones and tablets and smart TVs are already paving the way for a seamless media experience.

Find ways to make online as valuable as offline

Online consumers faced with high data transport costs are often unwilling to also pay for content. To overcome this obstacle, mobile operators should enable 'paid carriage' models, where content owners can choose to foot the traffic bill and build that cost into the price of their content. Such an approach can enable them to build 'freemium' and other business models that blend ad-supported and premium services in new ways

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