At IBC 2016, the passion for integration between broadcast and media was palpable. In his opening keynote, Dominique Delport, global managing director at Havas Media Group and head of Vivendi Content, told delegates in Amsterdam that the winning formula media companies have enjoyed over the past 50 years of mass marketing is officially over. Below, he announces a new bet from Studio Plus and shares six things you should know about today’s content-thirsty world.
In the new media landscape, content is the new pop culture. And, with the right combination of math and magic, it will be increasingly delivered at scale to a mobile-first world.
On October 11, Vivendi will enter this space with Studio Plus.
The concept is simple: partnerships with local telcos to deliver one new series each week, comprising ten episodes of ten minutes each. The series are being produced in six languages and cost €1 million each to create. By mid-2017, Studio Plus will be available to 600 million people across 20 countries on both iOS and Windows 10 and will be launched in Europe before the end of this year. Some €35 million has been invested in this unique project so far.
It’s a gamble, it’s a first, and it takes us into the unknown. Will it be a success? We certainly think it will. This, in our view, will be the preferred mobile entertainment solution for people on the go—when you have just ten minutes to spare, on your commute, waiting in a queue, or whenever you don’t want to commit to a 50-minute TV episode.
We are about to see the rise of premium short entertainment created exclusively for mobile. Why? Because the only way to navigate the new world order is with great content and a great user experience. These are the six things you need to know about the future of our content-thirsty, mobile-obsessed world:
1. Today, the audience is the media, and they’re powered by social.
For agencies and their clients, this presents a world that demands faster, more direct solutions, which use data and insights to better understand and target individuals with media that’s purposeful and accepted.
2. Advertising is now ruled by the algorithm.
Creativity is still central to our world but make no mistake—what can be automated will be automated. Programmatic began with digital display and now covers a range of other formats. Very soon, programmatic television advertising will be delivered at scale and will transform digital advertising over the next three years.
3. The rise of ad tech is powering better data collection.
This leads to improved consumer intelligence and enables us to turn harder-to-reach consumers into better customers, while giving them a better retail experience.
4. By 2018, OTT will be a $15 billion industry.
As a result, players such as Disney’s ESPN are launching a la carte offerings to tap into this behavioural change. The service won’t require a cable subscription and will provide content that you won’t find on the ESPN sports channel. Netflix also has shown incredible success with original content series such as Stranger Things and Narcos. However, the format is only sustainable if the content remains high quality, so it’s a complex business equation.
5. Google, Apple, Facebook, and Amazon are dominating western media.
The outcome will be nothing short of a bloodbath of mergers and acquisitions, which could see things such as Apple buying Time Warner and Netflix, plus 30 percent fewer digital players by next year (if the rumors are to be believed). A media revolution in which the big players will try to buy up everyone and anything that helps them reposition for the new content-driven landscape will be scary and ugly.
6. Only the most agile will survive.
Those who are currently innovating for this new world order are partnering with competitor cable networks to produce bold programming such as The Young Pope, a collaboration between Canal+, Sky, and HBO. Or they’re gambling with innovative content for mobile, as in the case of Verizon’s video platform go90 and The Runner, produced by Ben Affleck and Matt Damon.
For more insights, follow Dominique on Instagram @DD_Files and on Twitter @DomDelport. Watch the video of Dominique’s IBC 2016 keynote presentation here.