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The Future of Media: Four Key Drivers Altering an Industry

Until recently, the global media industry had been relatively stable, with a robust value chain and well-defined business models.

Today, multiple factors are tearing at the fabric of those finely tuned business models: new players such as Netflix, Hulu, Amazon, and Apple offer consumers new ways of accessing professional video content; technology standards are in flux; and regulatory and macroeconomic factors undermine consumer and investor confidence.

Last week, more than 90,000 media and entertainment officials from 150 countries descended on Las Vegas for NAB Show, the annual National Association of Broadcasters conference. I attended to share some of predictions for the industry that we have developed in the Cisco Internet Business Solutions Group (IBSG). In particular, I spoke at a breakfast briefing for CxO-level executives about the impactful yet uncertain effects of four key drivers—consumer behavior, regulatory changes, technology, and macroeconomics—in an effort to better define their media-industry disruptions: Read More »

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From Internet Video Consumers, a Call for Content

lizdebskBy Leszek Izdebski, Cisco Internet Business Solutions Group (IBSG)

These days, professionally produced video can be accessed through a dizzying array of hardware and delivery choices. But which concerns are top of mind for typical video consumers?

To better understand the dramatic changes in the consumption of professionally produced video, Cisco IBSG surveyed 1,152 U.S. broadband consumers between the ages of 13 and 75+ in March 2012. The overall goal of the survey was to understand how consumers watch video: their habits, preferences, and the devices they most prefer.

Our core findings revealed that Read More »

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Streaming Is Going Mainstream: The Upward Arc of Online Video, Driven By Consumers

Only a short time ago, consumers had limited choices for accessing professional video content.

Today, a smorgasbord of options continues to multiply—from premium cable and DVDs, to online choices such as Apple, Netflix, and Hulu. Hardware options are equally dizzying, as traditional TV gives way to PCs, smartphones, and tablets. As portable devices meet the cloud, more consumers expect to view their favorite content anywhere, anytime.

The London Olympics this year were a case in point. NBC statistics reveal that more than 57 million U.S. viewers streamed Olympic events online. And over 7 million unique visitors per day accessed the BBC’s online Olympic sites, with nearly half of them watching on mobile devices.

Clearly, media consumption has evolved. Given the complexity of choices, it is essential for all players in the video value chain to understand what consumers need and want. To gain greater insight, the Cisco Internet Business Solutions Group (IBSG) studied the trends and behaviors of 1,152 video consumers in the United States in 2012.

Chief among our findings? Streaming is going mainstream—and if the quality, variety, and delivery of streaming video are held to a high standard, consumers will be willing to pay
for it.

Streaming Is Going Mainstream

Seventy percent of U.S. broadband users are watching professionally produced Internet video every week, with an average viewing time of more than 100 minutes per week. Among 18- to 24-year-olds, viewership rises to 94 percent. Overall, streaming video is ahead of downloading and about even with DVDs and Blu-ray Discs (see Figure 1). Read More »

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The Explosive Evolution of Online Media

If any doubts remained about the soaring demand for online media, the London Olympics probably dispelled them.

With 217 million viewers in the United States alone, it was the most-watched television event in history. But it also illuminated the evolving habits of online consumers. For starters, two events—the women’s soccer final and women’s gymnastics final—accounted for more online viewership than all events combined during the 2008 Olympics. Tablet computers, particularly the iPad, are driving this trend.

These kinds of striking transitions in online media consumption were top of mind during two gatherings that I attended last week. The first was a roundtable discussion of media executives in Hollywood, which I moderated; the other was a World Economic Forum Industry Partnership Strategy Meeting in New York, focused on media entertainment and mobility.

It was a privilege to be around such industry brain trusts and to share research from Cisco IBSG. Here are four core topics of conversation that emerged: Read More »

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Cisco TelePresence Is Dead. Long Live Cisco TelePresence!

A high five to Zeus Kerravala for hitting the nail on the head in his response to a recent Forbes article predicting the demise of telepresence as we know it. Here’s the key quote:

“The real question to be asked here is whether there is enough innovation left in telepresence to allow Polycom and Cisco to stay ahead of the commodity curve, and I think the answer to that is yes.”

Yes, Virginia, there is such a thing as a dancing elephant.  Why, just a mere five or so years ago, telepresence was just a twinkle in John Chamber’s eye.  Allow me to meander down memory lane. . .

Read More »

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