Accenture: traditional businesses struggling to respond to disruption | Media Analysis | Business
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A growing array of players in the video industry are facing ‘unprecedented’ disruption and intense competition, meaning that they need to recalculate their future strategies, says a report from Accenture.

accenture 4may2017The Charting the Course to Success report shows that digital disruption is redefining the video industry. It is said to be challenging the established industry value chain, redefining the rules of competition and altering traditional key success factors. Accenture believes that much of the growth is coming from digital-born disrupters, and that traditional businesses are struggling to respond.

The report suggests that digital natives are rewriting the rules of competition in the digital video industry. It says that such people are positioning themselves as innovators, with platforms that enable other businesses to innovate alongside with platform economics allowing them to enter new markets fast and at scale, and to monetise original content rapidly.

Accenture adds that through data-driven operating models, they are delivering rich and compelling video experience to consumers, decisively raising expectations. Yet it also believes that distributors are threatened by the shift in consumer behaviours and that as customers fragment their media consumption, distributors will need to drive higher customer engagement to increase loyalty and revenue per user. This, asserts Accenture, means that they need to figure out how to better understand content performance, launch new direct to consumer digital businesses and command a premium on their own advertising inventory.

“To truly attack the digital market in a manner that allows incumbents to continue to grow their traditional business while leveraging their advantages in the new, they must navigate an S-curve, transforming their core business to fuel growth while enabling the company to launch new services,” argued Accenture Digital Video managing director Sef Tuma and author of Charting the Course to Success. 

“It’s important to deal with both vision and reality — that is, where companies’ money is right now versus later, as well as their ability to disrupt themselves in the midst of organisational and technological legacy, and to deal with disruption while protecting their existing business. Many of the things incumbents must do might seem counterintuitive because the actions go against traditional thinking or motivations in their current business model. But it’s the only course to success as companies navigate through digital disruption.”