Wireless World assets kpmg

Wireless World Assets Kpmg-Free PDF

  • Date:25 Sep 2020
  • Views:1
  • Downloads:0
  • Pages:12
  • Size:236.18 KB

Share Pdf : Wireless World Assets Kpmg

Download and Preview : Wireless World Assets Kpmg


Report CopyRight/DMCA Form For : Wireless World Assets Kpmg


Transcription:

Race for the platform,Wireless World scenario, Wireless carriers already have the combined strength of connectivity bundling. and low marginal costs affording them a distinct advantage in becoming the. platform of choice for pairing mobility and premium video access. In our introductory paper Race for the Platform what s virtually everyone has a smartphone and they all need. around the next curve June 2017 we examined connectivity delivered to those smartphones the wireless. the evolution of the premium content business and carriers have a significant market advantage With the. specifically the possible maturation of over the top OTT trifecta of smartphone adoption constant connectivity and. business models We considered various outcomes for the promise of 5G they are well positioned for the future. this evolution and believe that ultimately a platform will. The wireless carriers have three distinct advantages that. arise that will become the new aggregator of content as. lay the foundation for them to become the platform of. the traditional video distribution ecosystem over cable. choice for pairing mobility and premium video access. satellite and fiber optic becomes challenged,Connectivity With our growing dependence on. The resulting platform model would be significantly. smartphones and need for constant connectivity, different than what is currently in place It would cater. combined with the promise of a 5G future the, to the needs of the customer in ways that traditional. wireless carriers provide the clearest path to a single. cable and numerous OTT offerings don t Rather than. network provider that meets all the connectivity needs. forcing TV viewers to juggle several devices remotes. of the consumer, and subscriptions a platform model would essentially.
create a one stop shop for OTT network and premium Bundling The consumer will likely move to an option. content delivered through one access point that is one where they can get cost savings from a bundled offering. subscription and one bill of connectivity and premium content whether in an. a la carte or pick a package environment This is not. In the rapidly shifting content delivery ecosystem which. simply about pricing it s about crafting a reimagined. players are likely to win the race for the platform In this. bundle that doesn t exist today Regardless of provider. paper we look at the possibility that the wireless providers. the optimal combination of content and delivery will. will become the dominant platform for consumers to. gain market advantage The wireless carriers own the. obtain their premium content, pipe for connectivity and have the existing relationship. Market advantage connectivity with the customer but they currently lack a compelling. The smartphone has become the control center of our content offering. lives In the U S alone the number of smartphone users. Low marginal costs Wireless carriers have a massive. is expected to reach 224 million by the end of 2017 and. economic incentive to monetize the content going,projected at 271 million by 2022 1. over their networks especially as they continue to. One outgrowth of our reliance on smartphones is a major invest large amounts in network upgrades Ultimately. shift in content consumption preferences Mobility has monetization of the bundle will rest with the content. changed the game in terms of where and when people provider whether inside or outside of the wireless. consume content In this mobile first landscape when provider ecosystem. umber of smartphone users in the U S 2010 2022 in millions Individuals of any age who own at. least one smartphone and use the smartphone s at least once per month. Source Statista DMO, https www statista com statistics 201182 forecast of smartphone users in the us. 2018 KPMG LLP a Delaware limited liability partnership and the U S member firm of the KPMG network. of independent member firms affiliated with KPMG International Cooperative KPMG International a. Swiss entity All rights reserved The KPMG name and logo are registered trademarks or trademarks of. KPMG International NDPPS 736464,No longer business as usual. The traditional bundling of premium content with the underlying delivery network has been the. primary business model for decades The seeds of change began with the offering of the network. separately via the sale of broadband service without bundled content This movement intensified. with the shift to mobility where the out of home experience was just as important as or maybe. more important than the in home experience This explains the move by many content players to. try and shift to a more all encompassing experience while still maintaining the existing business. ecosystem that pays the bills, There are important elements putting pressure on the existing ecosystem It s clear that with.
the increasing importance of mobility the wireless players are in an interesting position to. take advantage of these changes The fragmentation of viewing the increasingly high price of. pay television subscriptions the increasing number of alternatives to standard bundles and millennial. purchase and viewing patterns are just a few of the changes simultaneously in play These pressures. are slowly starting to impact how share of wallet is allocated to viewing choices and there is. evidence that people are increasingly foregoing pay television. Cord cutters and cord nevers are on the rise, Number of U S cord cutters and cord nevers 2016 2021 forecast in millions. 69 7 2016 2021,Cord cutters 19 1,31 7 36 1 40 1,Cord nevers 4 8. 32 5 34 4 36 3 38 0 39 6 41 0,2016 2017 2018 2019 2020 2021. Source eMarketer July 2017, There are other factors to take into account when considering the wireless providers as the primary. platform in a new premium video ecosystem Mobility is a necessity that has put certain traditional. in home providers such as cable and satellite in a difficult position The consumer clearly expects. a fully mobile experience for their entertainment options and access to a superior wireless network. is fundamental to success in the new video ecosystem. The providers that opt to conduct business as usual to protect themselves from the economic. hit of transformation will be left by the wayside Creating a competitive bundle with a compelling. video offering is not only essential to compete against other industry players but also against. other wireless providers said Paul Wissmann KPMG s national sector leader for media and. telecommunications, 2018 KPMG LLP a Delaware limited liability partnership and the U S member firm of the KPMG network.
of independent member firms affiliated with KPMG International Cooperative KPMG International a. Wireless World 3, Swiss entity All rights reserved The KPMG name and logo are registered trademarks or trademarks of. KPMG International NDPPS 736464, Wireless providers have the advantage of owning the wireless connection to the consumer and. some have branched out to offer their own OTT offerings as well as other forms of digital media. and premium content Moreover 5G technology with its promise of vastly greater data speeds. and capacity could be a strong enabler for wireless providers to position themselves in the new. landscape They could offer a more relevant triple play mobile 5G delivered home broadband and TV. The promise of 5G wireless technology holds the possibility of a sweeping transformation of the. TV and film industry into a platform business model While a 5G standard has not been finalized the. capabilities of what is expected from 5G are strong contributors to solving the current limitations of. speed and capacity Although several years away from practical widespread deployment 5G offers a. bigger pipe a faster stream and lower latency, In addition the future of 5G also includes the likely emergence of a viable high speed broadband. service to the home without the same last mile issues of other competitors 5G would eliminate. the need for that neighborhood infrastructure and could become the sole source for Internet. connectivity for home and mobile in addition to phone service. Customer is king, It s safe to say that consumers have historically shown that they favor simplicity and easy access as. long as it is delivered with competitive pricing Which makes a single supplier or extremely limited. number of suppliers a necessity for seamless delivery and access to content. Wireless providers have an advantage in their strong customer base and consumers desire to have. an out of home high speed wireless connection It is therefore likely that the wireless providers will. be able to be a one stop shop for broadband needs both in and out of the home. This advantage may be challenged as others try to exert themselves as the platform of choice. But without the wireless network access it will be hard for anyone else to compete with as. compelling a proposition To further round out their offerings wireless providers could possibly. acquire a large content creator to make sure they have a seat at the content distribution table. While overall media consumption is slightly growing the devices such as mobile phones and. tablets are growing the fastest while most other traditional outlets are shrinking. Growth of average time spent per day with major media by U S adults 2014 2019. Percentage of change,2014 2015 2016 2017 2018 2019.
Digital 7 3 6 0 5 1 4 1 3 5 2 8,Mobile nonvoice 15 7 11 0 8 9 6 5 5 2 4 0. Desktop laptop 1 9 2 0 3 3 2 0 0 6 0 4, Other connected devices 15 0 21 2 24 5 15 0 9 1 7 0. Radio 2 0 1 0 1 0 0 7 0 6 0 5,TV 3 7 3 7 1 9 3 1 2 5 2 2. Print 9 1 10 4 10 1 6 4 5 3 4 4,Other 16 5 7 3 6 8 6 6 5 7 4 9. Total 0 1 0 4 0 9 0 4 0 5 0 4, Note ages 18 time spent with each medium includes all time spent with that medium regardless.
of multitasking for example 1 hour of multitasking on desktop laptop while watching TV is counted. as 1 hour for TV and 1 hour for desktop laptop time spent with desktop laptop includes all Internet. activities on desktop and laptop computers excludes digital. Source eMarketer September 2017, 2018 KPMG LLP a Delaware limited liability partnership and the U S member firm of the KPMG network. of independent member firms affiliated with KPMG International Cooperative KPMG International a. Swiss entity All rights reserved The KPMG name and logo are registered trademarks or trademarks of. KPMG International NDPPS 736464, Another consideration is the impact of 5G in the race The predictability of the millennial continues to dog. for the customer In addition to impacting consumers the existing framework The question of whether we. current mobile needs 5G technology is going to be can expect them to act like their parents may miss the. significant as it relates to emerging technologies such point This may not be a matter of changing preferences. as IoT or autonomous vehicles said Wissmann It and economic situations as they get older but more the. really comes back to bundling concept and how the fact that whatever their ultimate tastes and economic. wireless carriers are able to bundle and monetize their situations the impact of the changing technology will. offerings to stay one step ahead of customer needs never make their parents actions a relevant indicator. Therefore we believe that while the millennial may. In order to create a new truly coordinated bundled. change what they watch over the coming years and, offering carriers must successfully cobble together the. how much they spend the way they watch it and the, rest of the ecosystem and integrate more broadly They will. expectations of the way they consume it have forever. need to work not just with content providers but also with. changed the dynamic of the video ecosystem There is. others such as auto companies cities smart cities and. no turning back The millennial is wedded to a mobile. IoT providers to produce a truly all encompassing product. future where they can get what they want on demand. that makes the purchase easy and use just as easy, When comparing pay television and SVOD preferences.
This level of integration is not a one way proposition the millennial segments look very different than. Other players in the ecosystem must see the need to Gen X and Boomers. work with the wireless companies to enhance their own. success or these potential partners may quickly become U S Internet users who would choose pay TV versus. the primary obstacles One proactive move that we are subscription video on demand SVOD services if. already seeing from the wireless players is to vertically forced to choose by age July 2017. integrate through acquisition This would make them. Percentage of respondents, important players in all levels of the business model. and therefore create a hurdle for other players to go 18 24. around them Without the wireless network access it will 65 4 34 6. be hard for anyone else to compete with as compelling 25 34. a proposition 53 7 46 3,SVOD Pay television, Note n 1 297 broadband users who subscribe to both pay TV. and SVOD The Diffusion Group TDG Benchmarking of the. Connected Consumer as cited in press release July 12 2017. Source eMarketer July 2017, 2018 KPMG LLP a Delaware limited liability partnership and the U S member firm of the. KPMG network of independent member firms affiliated with KPMG International Cooperative. arise that will become the new aggregator of content as the traditional video distribution ecosystem over cable Wireless carriers already have the combined strength of connectivity bundling and low marginal costs affording them a distinct advantage in becoming the platform of choice for pairing mobility and premium video access 1 Number of smartphone users in the U S 2010 2022 in

Related Books