Opportunities and challenges for the content industry.
The rapid growth and consumer uptake of the Internet has created both opportunities and challenges for the content industry. The advent of new form-factor devices such as tablets and content types such as short-form video are creating significant shifts in consumption patterns. The increased ease of transfer of electronic files over the Internet has also led to an increase in piracy. For consumers, the cost, convenience, and anonymity are the prime drivers for piracy. Content owners have traditionally countered piracy by seizing counterfeit CDs/DVDs and prosecuting online distribution platforms and pirating consumers. However, piracy is not the only challenge facing content owners. While consumers have rapidly increased consumption, the pace of monetization has been much slower. A combination of advertising and consumer payments is likely to establish itself as the de facto monetization model for most content owners.
In the long run, content providers need to evolve beyond only selling content. One way of achieving this is to provide superior digital content consumption ecosystems that provides anytime, anywhere access across multiple devices. In this aspect, cloud-based services will play a critical role in adding significant value to the content proposition. Moreover, such ecosystems are difficult to pirate and they enhance the content’s value proposition. Content owners should also actively work with Governments and Internet Service Providers (ISPs) to create legislation modelled on the “three strikes rule” in order to create a credible deterrent and cut down on piracy. In the end, the imperative for the success of content players will be, creation of platforms where consumers get a superior experience, in the most convenient manner.