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Vecta Consulting
  Vecta in Media
  Competition for eyeballs and dollars is focusing more on satellite TV, Internet PC, DVD-based Games and 3G Mobile Multimedia as provision of the most compelling content propels each category towards the hands of a single dominant global media platform supplier.

And there is more to come; as broadband, broadcast, and physical content distribution compete for the future.

How will the transition to entertainment on the move pan out? Which form of wireless communication will it use and will it be the same as for information on the move? Will user-created content outplay the media at its own game?

  Today's content provider faces a proliferation of routes to the consumer - broadband, cable, physical media, satellite, terrestrial, wireless - and many receivers - DVD/PC, TV/VCR, Games Console/TV, Mobile Handset. Most are still better suited to entertainment at home but things are changing.

What content over which route to which device? Costs can be avoided by ignoring some platforms - but which?

How interactive must the content be?

Increased platform and channel choice has rendered audience aggregation over an evening's viewing of an all-purpose TV channel obsolescent. Periodic advertising slots are losing their impact. Tomorrow's consumer will be loyal only to the current performance and, even then, may want more than just a passive viewing and listening experience.


Media players beware!

  Broadcast distribution is only effective when capacity is limited and costs are high. Memory cost-performance continues to evolve, allowing physical distribution to compete in more cases. As the economics of broadband delivery improve due to capacity increases, broadcast delivery will become limited to those programmes, like sport and national events, that really do benefit from being watched live by everyone at the same time yet have little value after being broadcast for the first time.

Content providers, from sports clubs, games developers, programme makers, advertisers, and news reporters, to SMS, email, and videomail originators need to learn from successful street theatre artists whose audience retention depends totally on every second of every single compelling performance. Those hoarding material and investing heavily in digital asset management hoping to reap dividends from re-use may find the value of their content declining faster than the medium on which it is carried as today's entertainment consumers create an increasing proportion of their entertainment themselves.

Apart from short term issues regarding industry consolidation following deregulation, there are longer term considerations:

  How will further convergence between the platforms affect content providers?

What supporting media and technology partnerships will ensure maximum direct and indirect revenue per viewer?

Can broadcast survive competition from physical and broadband distribution?

What effect will location-based services have on content delivery to mobiles?

Will digital media parks become the production villages that displace vertically-integrated production houses?

Can governments achieve future windfalls from sales of spectrum reclaimed from analogue TV?

How can Digital TV and Internet PC resources achieve universal access so as to enhance education and facilitate dissemination of government information?

Will mobile multimedia supported by micropayments change the game completely?

  With increased emphasis on innovative content, there is a great need to focus media resources on origination of compelling content.
  How can you best integrate production, warehousing, and distribution to minimise origination costs by avoiding wasted effort and streamlining performance?

How can non-productive cost and time be eliminated?

How far will the market switch to consumer-created content shared with friends?

  Maximising the return on content investments requires far wider consideration than the hitherto primary broadcast audience including a careful assessment of the potential for each of these ancillary activities to interact with one another. And convergence of the digital and media worlds is continuing to create distruptive opportunities for the agile.
  • Resale to other channels and platforms;
  • Sale of format rights to other producers;
  • Video/DVD/CD/Book sales;
  • Merchandise licence sales and royalties;
  • Brand and content extension into New Media;
  • Pre-broadcast Content on Demand sales.
  Much is at stake. With PayTV services worth around $7 billions pa in UK alone supplemented by $6 billions of BBC licence fees and $4 billions pa of advertising revenue, plus $13 billions pa on Consumer Electronics and $7 billions pa on increasingly-capable mobile handsets, creating compelling content is no longer enough to succeed; timely cross-platform exploitation is critical.
  Our Digital Commerce Experts Network is dedicated to exploring the key issues related to developments in digital commerce and entertainment. This involves projecting the evolution of the competitive platforms - games consoles, mobile handsets, PC, and TV, identifying popular applications and understanding revenue models and valuations. It also requires identifying issues related to supplier and partner selection for commerce. And we can help when a system project goes wrong.

Our extended network ensures we have the expertise to help you solve just about any business or technology problem.


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Cottenham, CAMBRIDGE, CB24 8RN

Tel: +44 (0) 1954 250222, Fax: +44 (0) 1954 252333

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