Data analytics will lead to cognitive content
The media and entertainment industry is undergoing significant changes in audience viewing habits, increased competition and access to insight via data analytics that had previously been unavailable. Two recent studies—Personal TV: The Future of Broadcasting (IBM Global Business Services, 2015) and The Best vs. The Rest: Deriving Value from Audience Analytics (IDC iView, 2015)—provide a look at these changes. And they demonstrate the immediate impact on the media and entertainment industry worldwide and discuss how companies in this industry can leverage these industry changes for continued success.
New consumption patterns
A major change in the way audiences consume media is occurring. Both of the previously cited publications agree that consumers are connected and accessing content simultaneously from multiple devices. The common thread is that audiences want access to their favorite content on many types of devices at the same time. And according to the previously cited IBM Global Business Services report, more than half consume media while multitasking on different devices.
Consumers today want a choice. They want content on demand, and they want the content to be flexible enough to take wherever they go.
Personalized content recommendations
In addition to being able to access choice content from any device, consumers also want a personalized viewing experience. The previously cited IDC iView report states that two-thirds of consumers are looking to improve their overall viewing experience, craving access to personalized, on-demand content.
Brands such as Netflix and Amazon are already meeting this demand exceptionally well, bringing a new breed of competition to media and entertainment, according to data in the IBM Global Business Services report. These providers give viewers unprecedented levels of choice paired with personalized engagement that is provided through a customized and convenient experience. This type of choice-driven business model is outperforming traditional media companies, a sign that media and entertainment providers may need to offer similar experiences to remain competitive.
Data analytics on the rise
The common thread evident in both of the previously cited reports is the importance of data and relevant insight. New consumption patterns and the desire for personalized content are intertwined by the need for real-time data analytics. Media and entertainment companies that recognize this need are starting to modify their processes to make smarter data-driven decisions. The IDC iView report states that 81 percent of media and entertainment organizations have expanded their analytics techniques, and 67 percent are using new metrics or key performance indicators (KPIs). These efforts are all in response to the changes in the industry, and they are expected to continue on an upward trajectory.
The cognitive content future
The previously cited IBM Global Business Services report describes how cognitive content will be integral to the future of media and entertainment. Consumption is expected to continue to transform into an immersive viewing experience that is built on real-time insight. Customer profiles can be developed from different sources such as apps, streaming preferences, social media activity, and a highly personalized, on-demand experience is expected to be available.
Essentially, your television—regardless of what type of device it is—will learn what you like and direct your viewing experience to maximize your satisfaction. And, this cognitive content expands beyond just television to include music, books and gaming.
Is your media and entertainment company positioned to provide consumers with the cognitive content experience they want? Do you have access to the data needed to advance with the industry? See what you can do with IBM Behavior-based Audience Insight for Media and Entertainment.