We predict that the connected entertainment and media market will be worth US$135 billion globally by 2020, representing 20% average annual growth over the period.
It’s clear that some consumers are no longer content to be passive recipients of broadcasters’ programming and schedules, with 62% of respondents to our ‘connected living’ survey agreeing that technology gives them greater control over the media they consume.
As digital players find out more and more about consumers’ likes, dislikes and habits, they’re using the insights from their relationships with consumers not simply to manage content but also to make it. Amazon Prime Instant Video, for example, reaches out to consumers to find out which of the pilots they run should move into full production. Netflix uses advanced analytics of consumer data to make decisions about actors, directors and content for its ‘House of Cards’ series.
Younger consumers are more willing to share their information with entertainment and media companies. Our survey shows that 65% of consumers between 18 and 34 years old are willing to share, compared to less than half that number (27%) in the 55+ age range.
While it is clear that connected entertainment and media provides a massive opportunity to both incumbents and innovators, one of the biggest challenges they’re likely to face is around the growing awareness that personal data and information has a real value – there’s really no such thing as ‘free’ content for the audience, who are providing their data to these companies. So how much are consumers prepared to tell entertainment and media companies about themselves in exchange for the content they offer? And how much more are they prepared to pay for greater personalisation, which in turn funds the investment required to deliver these new technology-driven solutions?
Read more about the market potential for connected entertainment and media.