The future of TV

The telecom and media space is going through significant changes as the way we consume media evolves. The move to content digitalization accelerated and we received confirmation of the emergence of key players in the video and music distribution industry.

 We can therefore imagine a future of linear TV in which the video stream edition is virtualized and handled by a recommendation engine or the viewer himself. The editor (or TV channel) would be producing/acquiring rights for different types of content with a wide range of choices, and then proposing personal streams to their users based on their preferences.

 As illustrated below, the stream can be produced along a specific editorial line and adapted by the viewers, who can tailor them with specific on-demand programs.

This does not mean the end of premium or mass-market content or of traditional players, but a more customized user experience in which players need to demonstrate why it is better to view TV content through them and not directly through the content owner’s OTT service or the TV channel’s on-demand service.

 In this vision of TV, three different viewers are watching the same contents built around the same editorial line, but with a different sequencing / experience.

The major sport event (say a EURO football game) is starting at 20:30 and needs to be viewed by all viewers at exactly the same time (nothing more frustrating than to hear the neighbor screaming out when the goal hasn't been scored yet on our own screen)

The evening news or the reality show needs to be viewed by all interested viewers in the evening, but the exact time does not matter. What is important is to be able to discuss/comment the following morning with colleagues around the coffee machine.

And last, the rest of the contents can be totally customized depending on the viewer's own preferences, choices and time available.

 These changes will:

• ƒƒProvide Internet players with the opportunity to further enter the ecosystem, with differentiated offers in terms of user experience and business models;
• Force traditional media players to adapt and engage in digital transition with impact on their value propositions and cost structures;
• ƒƒFilter the content landscape to provide only the most attractive content, as there will be less gaps to  fill with low-cost content at remote times or on less-viewed channels. The number of long-tail channels in large pay-TV bouquets will significantly decrease.

 One of the key question being on who will capture the related advertising revenue.

 This article is an extract of Arthur D. Little / Exane BNP Paribas report “Telecom and Media – how to ride the OTT wave”