ARE CONTENT COMPANIES READY TO LISTEN?

In this new environment, the a priori existence of content companies or media formats does not guarantee their continuation. Established companies will have to move fast to defend themselves against new digital challengers. As firms work through a range of unresolved issues, from interoperability across multiple platforms and devices to digital rights management, they will need to understand the true scope of the consumers’ newfound power.


THE THREE C’S OF DIGITAL ENTERTAINMENT: CHOICE, CONVENIENCE, CONTROL

One of the most surprising findings from the study was the large number of people who consider themselves likely to buy digital devices and content. Everyone is interested in digital media and entertainment, even though the first generation of these devices lacks many of the features most desired by consumers. What is more, the number of likely purchasers does not vary by age group.
When consumers were shown a futuristic eBook reading device, or considered a television entertainment service that let them control the viewing experience, or envisioned a digital “audio device” that gave them the ability to listen to any music of their choosing, anywhere and anytime, the response was largely enthusiastic (see Figure 4-1). Based on consumer responses and all other available data on adoption trends, Accenture estimates that, with the right conditions prevailing over the next five years:
• 28 million consumers will purchase an eBook reading device
• 37 million consumers will use interactive digital audio
• 31 million consumers will subscribe to a multifunctional
interactive television service Based on their stated preferences, consumers want eBooks that are highly reliable. They want access to an extensive library of works on a lightweight device that has a back-lit screen displaying a clear, highly readable image. Color and connectivity are cool; features like phones, pagers, organizers, and video are far less attractive (see Figure 4-2). In a digital audio device, consumers want high sound quality, access to virtually any music, a device that is virtually indestructible, and adequate storage capacity. In interactive television, consumers are expecting video-ondemand, the flexibility to watch programs any time they want, the ability to watch past programs at will, and almost total control over live television, from pause to instant replay. Key to the mass-market potential of these entertainment devices is their ability to excite consumers beyond the young “early adopter” trendsetters (see Figure 4-3). The appeal of these devices already touches the average consumer. This finding is quite surprising; conventional wisdom has it that younger consumers are more open to new technologies, and thus would be the early adopters of most new digital devices. Our study indicates that consumer interest in future digital entertainment devices is actually quite high across the age groups we surveyed, provided content is readily available and these devices have the functionality consumers want.