Continuous change is the only guarantee, driven by the relentless forces of digital transformation and changing consumer habits and preferences. Media industry leaders must remain vigilant and respond at speed to changes if they are to maintain their competitive edge.
- Changing consumption habits
The fragmentation of consumer time and attention is evident, with individuals moving away from traditional TV and media towards greater engagement with social media, gaming, and other digital platforms. We’re also seeing increased convergence between different types of content on the same platform.
The proliferation of content across various platforms has not only changed how individuals spend their time but has also increased the importance of data and altered the way businesses strategize their marketing and engagement efforts.
- The rise of the aggregator
Consumers continue to find it frustrating trying to manage the number of streaming apps they have and, exacerbated by the cost-of-living crisis, are continuing to unsubscribe. Moving forward, we’ll see a rise in the need for aggregators, acting as a central platform to integrate various streaming services to create an accessible, seamless, and engaging consumer experience.
These will take the form of device/OEM plays, pay TV initiatives, and entertainment apps (including FAST channels) that enable consumers to view and search across content owners. Underpinned by generative AI in areas such as content discovery, it could be a game-changing year for the customer experience, providing platforms that can better profile their customers, as well as navigate regulatory hurdles.
- The emergence of the ‘lifestyle bundle’
The aggregators could go even further, integrating different products and services into their platforms, such as e-commerce, finance, social media, travel and more. Fostering a one-stop destination for consumers will result in sustainable value for both the aggregators and the services they encompass.
Media will form part of that lifestyle bundle, offering access to video, social media, and music, but the traditional media companies may not ‘own’ it, so it’s important that they consider their role in the ecosystem to ensure they are investing in the right areas to drive the most value.
Flexibility is a critical element when it comes to bundling. One person may want access to video, travel services or grocery delivery, yet another may find that music and home security are more important.
- Customisation of consumption
Consumers also want flexibility when it comes to what they are paying for. Some may prefer to pay more for an ad-free experience, while others will want to pay less and accept limited utilisation. The demand for customisation is on the rise as consumers increasingly seek personalised experiences. This prompts businesses to provide flexible models that enable users to tailor their consumption based on individual preferences.
This shift challenges traditional business models, but businesses are forced to adapt. The ability to choose between different consumption models signifies the growing influence of consumers in shaping the products and services offered to them.
- Delivering for ‘churnaholics’
In a world characterised by on-demand services, consumers have also grown accustomed to the flexibility of easily switching between different services. We’re at a point where we’ve become a generation of ‘churnaholics’, freely subscribing and unsubscribing frequently. Contrary to traditional models that aimed to retain customers for extended periods, consumers now exhibit a stress-free approach to discontinuing services and expect such fluidity as part of their experience.
This has significant implications for businesses, that must adjust by focusing on continually enhancing their offerings, ensuring they maintain their relevance in a landscape where loyalty is increasingly fleeting.
A look ahead
2024 will be an interesting time for the media industry in the UK. We have yet to see what impact the strikes will have on production and whether we’ll see a post-Covid-style bump. We are likely to see greater data transparency between the major streamers. We may begin to see reform relating to the Media Bill, which is due to get Royal Assent by summer, and there will be excitement amongst the public service broadcasters when they launch their new live TV over broadband service. After a relatively quiet 2023 on the M&A front, we might also see more corporate transactions.
In a nutshell, the landscape of consumer behaviour and digital consumption will continue to evolve. New aggregators will begin to bring experiences together, customisation will start to become the norm, and media companies will continue to fight for consumers’ attention. Businesses must use data and insights to adapt quickly to cater to changing consumer preferences and shape their strategies to meet the demands of what will surely be another dynamic year.
