INTERNET TELEVISION POISED TO REACH 60 PERCENT OF HOUSEHOLDS BY 2014
Strong Interest in “Connected Content Experiences”
Paris—November 22, 2011—An anticipated surge in the household penetration of next-generation Internet-connected devices indicates solid consumer interest in new content to experience on these devices, according to a new study (“Connected Devices and Services: Reinventing Content”) presented today by global consulting firm Bain & Company at the Forum d’Avignon.
The study finds however that while consumers are inclined to increase their adoption of online content for video consumption, video games, live entertainment and cultural activities, media companies and cultural institutions face stiff competition for incremental consumer spending unless new business models and “ambitious content” are created.
Bain’s survey of 3,000 consumers in France, the United Kingdom, the United States, China and India suggests that a high degree of consumer enthusiasm may have limited incremental profit potential for businesses unless new innovative ways for experiencing content are developed.
“The permanent media revolution continues,” said Patrick Behar, head of Bain’s Media & Entertainment Practice in Europe and lead author of the study. “But media and entertainment companies must pursue aggressive content development and diversification strategies to unlock new consumer spending.”
Video games are fertile ground for creating innovative content experiences. Forty percent of those surveyed in Western markets use a connected console or terminal and more than 60 percent of the occasional players surveyed said that they were likely to increase their game playing. Yet a generation gap will remain amongst gamers－while 60 percent of those under age 35 see themselves playing more on connected devices, fewer than 25 percent of those older than 55 agree.
“Significant change lies ahead for the media and entertainment industry as content platforms, new entrants, and incumbents battle for profits and market share,” concluded Behar.