Tuesday, April 8, 2014

AMZN, AVID, NFLX: Sessions at Avid's ACA and the 2014 NAB Conference ...

We attended a few information and discussion sessions at AVID’s ACA and at the NAB (National Association of Broadcasters) 2014 conference the last couple of days.  Below are some of the main points made in one of them, and our takeaways.

This session was held during AVID’s ACA by Mukul Krishna, Sr. Global Director of Frost & Sullivan, covering digital media practice.

  • The old lines between content, networks for delivery, and content consumption devices are now blurred. 
  • Current siloed systems must be integrated in one workflow; collaborative workflows have become a necessity.  AMBlog: this is where tech vendors’ business strategies (such as AVID’s, its peers’, and competitors’) that include technologies combining all the components of the workflow,  make sense.
  • With more companies, small and large ones, coming out with newer tools and apps, the market is fragmented, which means we should expect consolidation within the next 5 – 7 years.
  • Content must be made available on multiple screens, but need to be monetized on all of those screens. 
  • Monetization means more ads.  Attractive ad ROI is necessary for more ads; and the ROI can be maximized via more eyeballs and targeted advertising.  Those ads become more effective if they are based on targeted content, or on-demand content.  AMBlog: this is why analytics of content consumption and overall consumer behavior have become more and more valuable, which explains why more tech vendors are focusing on enhancing or developing data analytic applications in addition to gathering the data.
  • Unfortunately, it is becoming more difficult to project which consumer devices will attract the most eyeballs.  That is why content must be made available everywhere.
  • Frost & Sullivan expects nearly 27% CAGR screen-device by the end of 2017 (from 2012).  With so many different screens and service providers (cable, satellite, OTT, etc.), all participants have the objective to keep their viewers.  Simply put: minimizing subscriber churn, especially for OTT, has become even more important.  AMBlog: this goes along with what we said when discussing AMZN’s Fire TV and NFLX. 
  • In addition to asset monetization via ads and minimization of subscriber churn, efficiency, which helps in cost-control, is a priority.  AMBlog: this again brings us back to a collaborative workflow for all participants.

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