ARMONK, N.Y., and AMSTERDAM, Sept. 14,
2017 /PRNewswire/ -- Digital video consumption is viral
and, according to a new study released today by IBM (NYSE: IBM) and
International Broadcasting Convention (IBC), more than half of the
21,000 consumers surveyed are using mobiles every day to watch
streaming videos, and that number is expected to grow 45 percent in
the next three years.
Today, the explosive growth of new digital content available via
online video distribution networks such as YouTube competes
directly with traditional broadcasting creating a new connected
landscape with data at the center. With this shift in industry
competition, media and entertainment companies aim to maximize
content investment and return while providing a differentiated and
exceptional customer experience. Ninety-two percent of surveyed
media and entertainment executives say cognitive technologies will
play an important role in the future of their business.
Released this week at IBC's annual conference, the "Creating a 'living' media partner for your
consumers: A cognitive future for media and entertainment"
study, conducted by the IBM Institute for Business Value, is based
on findings from two studies. The first is a survey of nearly
21,000 consumers in 42 countries about their video consumption
habits, and the second offers insights from 500 global media and
entertainment executives about the impact of cognitive computing on
their industry.
Globally, the study found 51 percent of surveyed consumers--and
67 percent in emerging markets—access free, over-the-Internet video
from providers such as YouTube, Facebook and Snapchat, whereas 48
percent access video through regular subscription services from
traditional pay-TV providers. Among the 55 percent of surveyed
respondents who watch video regularly on mobile devices, about a
quarter spend one to two hours using mobile broadband instead of
WiFi. Despite consumers' drive to go mobile, many respondents say
the experience leaves much to be desired. For example, 65 percent
of surveyed consumers very often or regularly experience buffering
problems and 62 percent have long waiting times to start a
video.
Although media companies have advanced in recent years, most lag
digital disruptors in the application of data, machine learning and
advanced automation to deliver next-generation experiences at
scale. Cognitive capabilities can play a critical role in this
transformation by unlocking and interpreting previously
inaccessible data, yielding audience, content and contextual
insights that can help media companies reach viewers with
compelling, personalized experiences.
To deliver audience-tailored services in the moment,
broadcasters must gain actionable, relevant insights from large
amounts of data, leveraging advanced data tools and cognitive
systems. In fact, organizations such as the All England Lawn Tennis
Club who organize the Championships, Wimbledon are already using
cognitive computing and artificial intelligence (AI) to create,
acquire and program content, personalize services, manage
advertising inventory management, streamline production and enhance
staff productivity.
Cognitive tools can also be applied to interpret video and audio
content in terms of sentiment and automating the identification of
key moments of interest. Applied at major events such as the
Masters and the U.S. Open, these tools help streamline the editing
process and support customization at scale to better serve
individual fan interests.
"The proliferation of video platforms and services are enabling
more dynamic social, short-form, and immersive content formats that
creates cross-platform competition for traditional licensed and
original content," says Michael
Crimp, CEO, IBC. "This is a challenge for advertisers and
content providers to reach target audiences with relevant,
personalized offerings and messages--to succeed they need to
embrace technologies and innovations in the marketplace, such as
cognitive computing."
"With an ever-increasing array of devices and over-the-top
direct-to-consumer platforms, connected consumers are now clearly
demanding high quality and personalized anytime, anywhere content
experiences," said Steven Canepa,
Managing Director, Global Telecommunications, Media &
Entertainment Industry, IBM. "The challenge is to use the
data emanating from this connectedness for competitive
advantage. Cognitive computing allows media companies to
better understand their audiences, to enhance customer choice and
engagement, and to derive the insights necessary to better connect
the right content with the right audience member."
With the rapid evolution of customer preferences and demands,
media companies face immense pressure in a hyper-competitive
market. The IBV and IBC recommend organizations embrace the
opportunities that the marketplace is currently presenting by:
- Applying cognitive technology to achieve
personalization. Delighting and engaging each individual
consumer by understanding the personalized, in-the-moment
experiences each customer craves is critical. Cognitive
applications in media and entertainment can help do just that, by
delivering audience insights and content enrichment, as well as
content prediction to create a compelling customer experience based
on audience preferences, affinities and tastes.
- Revamping infrastructure to meet the coming demands.
Moving from several hundred channels to several million "cable
channels for one" that predict and serve individual needs in real
time will require much more flexible and scalable processes.
Companies will need to implement hyperscalable systems to manage
the ever-expanding data processing necessary to analyze,
personalize, and distribute video content. Such a platform must be
scalable to accommodate growth, resilient to support uninterrupted
service and secure to manage identities and protect valuable
assets. Content value chains —from acquisition through production
to distribution —need to be unified, requiring workflow automation,
which must consider the media content, associated rights and
technical and descriptive metadata. Media workflow systems must
monitor system infrastructure, the location of content and
distribution channel characteristics. By applying cognitive methods
to both audience insights and content distribution, media companies
can create an architecture that scales automatically based on
predictions of audience demands and peak loads, helping to match
costs and resources dynamically to changing market conditions and
business or operational needs.
- Reengineering business models to profit from in the new
media landscape. Media companies will need to make backend
systems and processes more intelligent to fully monetize the new
opportunities while cutting costs and refocusing investment on
content and customer experience. As media companies look to the
future, those that apply data to optimize revenues and costs and
strip out non-core activities will free up funds to reinvest in
content and enabling technologies, driving further growth and
success. Emerging technologies like cognitive solutions and
blockchain may play a key role in that future. Industry leaders
will be those who can institutionalize such capabilities as part of
their Digital Reinvention efforts and focus their companies on
investing in great content and delivering superior customer
experiences.
About IBM's Institute for Business Value
For more
information about the IBM Institute for Business Value visit
www.ibm.com/iibv or @IBMIBV. Download the IBM IBV app on your
Android device or iOS tablet.
About IBM Global Business Services:
For more
information about IBM Global Business services, please
visit:
www-935.ibm.com/services/us/gbs/consulting/. Follow IBM GBS on
Twitter at @IBM_Consulting.
Katie Leasor, IBM Media
Relations, 212-671-9356, kleasor@us.ibm.com
Marisa Conway, IBM Media
Relations, 212-671-9408, conwaym@us.ibm.com
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SOURCE IBM