TV & Broadcast in WiThink
- Select a blog category
And here I am at the fifth year of the Deloitte and Enders Analysis co-hosted Media & Telecoms 2016 & Beyond Conference. This grand, chandeliered hall is bursting with 400 of the most senior executives in the UK media and telecommunications industries including WPP, BT, Google, Sky, BBC and many many more.
Every attendee will have taken something different from the conference, but I would like to share my five main observations:
In a recent post, I explored the changing mix of consumption channels and the rise of streaming and subscription expenditure. Now I want to look at how this affects the record labels and individual artists. There has been debate in recent years about subscription services, and in particular the way in which the artist is financially rewarded when compared to physical sales or download to own (DTO) sales. There is a key fundamental we need to understand, the royalty amount that an artist earns from subscription services is a result of the contract between an artist and their record label. To increase the royalty payments there are broadly three options:
- Negotiate a higher royalty rate between record label and artist. This is within the artist’s control to an extent, however these rates are at risk of being squeezed as existing contracts were drawn up when subscription services were in their infancy and future contracts will be given greater scrutiny.
- Negotiate higher gross payment terms with Digital Service Providers (DSP). The terms between labels and DSPs get a lot of press coverage and with the exceptions of the really huge artists (e.g. Taylor Swift), artists require the bargaining power of their record labels to negotiate these. Tidal launched claiming they will be passing on a much greater amount to the record label which then filters through to the artist, however in my opinion, this looks to come directly from charging a higher monthly fee to its users.
- Generate more streams. Simply driving greater consumption levels will yield greater rewards to the artists. In the future I believe we will see significantly more artist innovation around personalising subscription services such as creating playlists, developing a greater online presence or choosing a single channel for a release (e.g. releasing via subscription services before making DTO or physical products available).
2015 has already been a huge year for the music industry, with a number of significant launches and announcements which will heavily impact the way in which consumers interact with content providers and the way that organisations within it will have to operate.
- A consortium of artists including Jay Z and Madonna purchase Aspiro to launch TIDAL
- Apple enter the streaming market with Apple Music
- SoundCloud begin to sign individual deals with record labels
- YouTube building up the launch of Music Key
These events all have one thing in common - they are reactions to the changes in the way music listeners want to own and consume music.
How do we ‘consume’ media? With more devices and platforms than ever, there is certainly no lack of choice. As the use of smartphones and tablets is now such an integral part of our everyday lives, it is vital for companies of all industries to understand our habits and how they shape our decisions.
The ninth annual Deloitte Media Consumer Survey presents its findings, focusing on how four generations of consumers (aged 16-75) interact with media, the challenges this creates, and how the industry can use this information to create more relevant and captivating content.
Understanding the client of the now and the client of the future: key themes from the Media & Telecoms Conference 2015
It is unsurprising that content would be at the heart of the Media & Telecoms Conference 2015, however, the event strongly confirmed how much the value of popular content is growing. The digital revolution has supercharged the value of having popular and world class content through increasing consumption options. This is why we see such large investments in original content across the spectrum by the big players.
I recently attended The Media & Telecoms Conference in London, where CEO’s from some of the world’s biggest companies gathered to discuss the current environment and vision for the future.
One of the common themes that really stood out to me throughout the day was the aspect of content creation. In a globalised economy, where barriers which once limited trade are now almost non-existent, we know that there is a market to be met. However, you then need the people with the talent to first come-up with the idea, as well as those with the requisite skills to build it.
These skills split into two groups; those with the creative skills for product and service creation and those with the digital/technical skills to make it a reality.
We’ve all been there – finishing the latest episode of our favourite programme knowing all too well that we’ve got to wait another week until we find out ‘who-done-it’. In today’s world, waiting for things is becoming rarer and rarer.
Today sees the kick-off of the 2014 FIFA World Cup in Brazil. The World Cup is a premium property for free-to-air broadcasters in particular, due to its ability to generate high audiences in many territories.
The Internet and access to data continues to provide opportunities for innovation and new business models. In the TV sector this trend has changed the way consumers can access content and the ability for new media services to be launched.
"In difficult times people deserve access to sport; sport brings people together and has a cohesive effect on community." John Petter, Head of BT's Consumer division1. I was born in 1991. I was born into a country where sport, and particularly football, was recovering from its lowest ebb.