Cord cutting and the 'second screen' not a considerable threat to
TORONTO, Oct. 31, 2013 /CNW/ - Canadians aren't cancelling their cable
subscriptions, but convenience, choice and a customizable experience
are of the utmost importance, says a PwC report released today.
According to the Rising to the Challenge: Canadian perspectives on the
Global Entertainment & Media Outlook: 2013-2017, it's not the cords
that are the issue for consumers—cable subscriptions are still dominant
in the media landscape, and people are still willing to pay for the
services they use. However, Canadians are keen to be able to access
content whenever, wherever and however they want. For many, this means
retaining their cable subscriptions and DVD players but enjoying access
to On Demand services and PVR devices and enhancing these traditional
media with digital platforms. But, to satisfy these demands, media
organizations face the challenge finding the fine balance between
creating new content platforms and keeping costs in line.
"Canadians are not cutting the cords yet, and we don't expect that trend
to shift anytime soon," says Lisa Coulman, Partner, Audit and Assurance
Group at PwC. "However, while they may not have concerns about costs,
what they do want is choice and an experience made just for them. As
such, there is pressure on companies to meet these demands and invest
in new ways of providing content."
When it comes to the 'second screen'—digital platforms that enable media
consumption—this is seen more of an enhancement for engagement than a
real threat to the traditional areas within the industry. Canadians
enjoy the flexibility of being able to watch a TV show or play a game
and then engage with related brands online. For media companies, this
adds a whole new dimension to advertising—one that focuses on building
communities and collaborating with sponsors on real-time engagement and
"Advertising isn't about billboards, commercials or banner ads
anymore—it's become a two way street," says Coulman. "Consumers don't
want to be talked at—they want to feel like they're part of something,
whether that's live tweeting or following a Facebook page or
participating in an interactive online contest."
The report also notes that it's not just consumers that are looking for
customization and flexibility. In fact, as pressure mounts to provide
consumers with easy and real-time access to content, media companies
are taking steps to streamline their offerings and form strategic
partnerships with organizations that specialize what they themselves do
not provide. As new costs arise as a result of consumer demands, the
'one size fits all' approach no longer applies, media companies find
themselves in a position where they need to be creative and work with
some unlikely players (including their competitors) to provide a full
spectrum of services and keep costs under control.
"Casting a wide net doesn't work anymore, not for businesses and not for
consumers," Coulman says. "While traditional media consumption has
remained strong, the industry landscape has shifted to include more
players and new sources of engagement, which companies must harness in
order to continue to thrive."
Follow PwC on Twitter at @PwC_Canada_LLP and on Facebook at www.facebook.com/pwccanada.
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SOURCE: PwC Management Services LP
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