I’m meeting a lot of incredibly interesting people for the last months, sharing my models and method. It is a very interesting way to get valuable feedback and to challenge my assumptions and findings. When discussion goes deeper in the mechanic of both DICoDE Strategies and Business Models, I often come back to the example of TV ecosystem. To me, it is a very interesting topic that highlights a few key elements. Let’s look at it in details!
First of all, watching DICoDE Strategies, we realize, as highlighted already in the past, that digital TV has doubled the aggregation role: from Broadcasters doing Curation and Distribution (through aerials) in the analog times, we have now these 2 roles split between Broadcasters and Carriers.
In fact, Carriers are even better positioned because they have the ability (and most of them use it) to Curate (and sometimes even to produce) some content. And this content is often highly attractive because it is exclusive or new.
So strategically, Broadcasters have now an extra layer between them and the user. And looking further down the chain, we see this layer even has credentials to identify and bill users that Broadcasters never had. We will come back to these 2 dimensions…
Let’s compare analog (top) and digital (bottom) TV ecosystems through DICoDE Business Models now.
Analog TV only captures users Attention. It worked well in the industrial/mass media age, but it is decreasingly relevant. Traditional (GRP-based) Business Models for TV advertising will lose ground towards richer models. New advertising will capture Engagement (via Interactivity), Data (via Relationship) and Money (via Transactional models).
The big problem is that these new currencies are captured by Carriers and not Broadcasters in the current set up. At least if these interactions are played on the TV screen, through the Set Top Box.
That’s the reason why Broadcasters need to work at several levels to make sure they’re able capturing other currencies than Attention:
- Re-considering relationships with several key players at content (creators, producers), advertising (creative & media agencies, advertisers…), aggregation (local players like carriers and global players like new STB providers: Apple, Google, Samsung, Logitech, Microsoft…), connectivity (today carriers, but tomorrow..?) and credentials (banks? others?) level
- Innovate taking these elements into account buying or building in these fields
- Consider jumping to adjacent ecosystems that provides better monetization possibilities like Mobile, Tablets, Computers… taking into account how users are watching TV today
This last element seems the best solution at a first sight. Possibilities enabled by Second Screen solutions (like BBC iPlayer on iPad) allow reaching sustainable Business Models, strengthening Relationship with audience, billing customers without Carriers intervention… This is why the future on TV might bypass TV screen and come directly to a second screen. Or a second Set Top Box…RTBF Tower (cc) Polanri / Flickr