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Redrawing the Lines in the Battle for the Living Room
The battle for the eyes of the consumer has been raging for some time now. The term was first coined way back in 1996 in an article examining the rise of digital experiences in the home. Since that time Devin Funchess Jersey , through the advent of the internet, smart phones, Wi-Fi and non-linear television, things have advanced dramatically. The connected-TV medium is still in its infancy and a wide range of newcomers are entering the market Shaq Thompson Jersey , whilst strategies for success are still being formalised. With consumer’s attention being the ultimate goal the lines are shifting as we enter the beginning of the end, or at least the end of the beginning, of the Battle of the Living Room.
How has the television landscape has evolved in recent years?
Over the last 12 years there has been a shift in the viewing habits of television watchers both in the UK, USA and around the world. Terrestrial services; once the kings of the television broadcast have been squeezed from different sides by increasing competition from satellite and cable services. In the UK alone this has led to a 40% drop in viewing figures for terrestrial services over that same period James Bradberry Jersey , which shows that consumers for the most part are willing to pay for premium subscription services providing the content is there. Interestingly enough however is the impact on those same satellite and cable services which the global economic slowdown is having, with Comcast reporting losses in terms of number of subscribers particularly in the low income household brackets. In essence people are turning back to free-to-air programming due to cost implications in light of the recession.
“…change happens very fast. If consumers do not perceive that their needs are understood and met, they are likely to transfer their allegiance rapidly”
Video-Over-Internet Consumer Survey 2012, Accenture
Additionally the influx of internet delivered programming and OTT services such as Netflix and Lovefilm have further impacted the existing subscription market by offering a simple entry to content delivered on demand and possibly at a price point which suits the consumer better than the high price subscription model. Responding to these ‘cord cutting’ internet streamed services also is the recent creation of new lower priced Daeshon Hall Jersey , or entry level service offerings by TV giants, such as ‘TV Essentials’ in the USA from Time Warner Cable and the new ‘Now TV’ from BSkyB in the UK, both set to take on the new OTT upstarts at their own game.
This diversification of core offerings shows that ultimately even the heavyweights in this battle are still struggling to call the plays long term and that ultimately the tide is turning and the consumer is able to demand that services that are more tailored to their requirements, more cost effective and deliver the content they want Taylor Moton Jersey , where they want it and when they want it.
64% of online consumers use international online providers for viewing content across TV, PCs and smart phones
Video-Over-Internet Consumer Survey 2012, Accenture
Spotlight on the major players, both the old guard and how they are adapting to brash new market entrants
The advent of broadband and the internet has mean that no longer do viewers require an aerial Curtis Samuel Jersey , cable or satellite connection to view the content they know and love. Cord cutting or the move away from fixed services such as linear TV, satellite and cable services has been on the rapid increase ever since the proliferation of fast internet connections, and boy, are the existing TV providers feeling the heat?
The latest developments sweeping the globe and capturing large swathes of viewers are flexible Christian McCaffrey Jersey , consumer tailored and cost effective OTT services such as Miniweb’s woomi across Europe, Mediaset Premium Play in Italyand particularly Netflix in the US and UK. These services which enable the viewer to receive the content they specifically desire when they want it, across multiple devices both in and out of the home makes static, contractual pay-TV services seem very outdated Cheap Carolina Panthers Hats , and in fact are beating the old guard at their own game by cornering the VOD market. Netflix alone has amassed a whopping 20million members worldwide and is starting to even throw its weight around in terms of content purchasing having increased it spend on content from $180million in 2010 to an impressive $1.98billion reputed in 2012. It seems the new boys are really packing a punch.
“Netflix US subscribers watched 80% more streaming video hours than were viewed in the same period on all US pay-TV VOD.”
TDG March 2012
Responding to these challenges Pay-TV operators and developing their own version of OTT services to compete with the likes of Netflix. Now TV from BskyB in the UK and TV Essentials from Time Warner Cable in the US are offering customers pay on demand services without the contract thus building on their breadth of experience and customer loyalty, despite Now TV not being branded as Sky, to attempt to claw back some lost ground to the young infiltrators. Despite subscriber figures slowing for many established Pay TV services, by offering an entry level service and a diversified product line means that companies such as Sky are actually bucking the trend and continuing to drive ARPU (average revenue per user) up year on year Cheap Carolina Panthers T-Shirts , a testament to their understanding of how best to tackle opposition.
From a hardware perspective, Smart TVs such as Philips and Samsung are delivering centralised entertainment and content services direct to the user unlike anything seen before. In fact the concept of a television in the traditional sense in some ways is being lost forever. The Philips Smart TV dashboard offers content service providers the opportunity to deliver their offerings
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