Content Connectors: How the Coming Digital Content Revolution Will Change Everything
Posted on 4th August, 2014 by Mark Mulligan
MIDiA Research has published a groundbreaking new report “Content Connectors: How the Coming Digital Content Revolution Will Change Everything”. The report reveals how Content Connectors, devices such as Apple TV, Google Chromecast and Amazon Kindle Fire TV, will push paid content out of its current early adopter niche to the mainstream. The report is immediately available to MIDiA Research clients along with an entire data set and presentation. To find out more about how to become a MIDiA Research client click here.
Here are some of the key findings of the report:
Approximately 35 million Content Connector devices
have already been sold globally and according to a MIDiA Research consumer
survey 10% of adult consumers now own one across the US, UK and Brazil. The US
is the leading market with 13% penetration. Content Connector owners are more
twice as likely as overall consumers to pay for digital content. 51% pay for video subscriptions like Netflix
and 50% pay for digital music. The fact that 48% are female, indicates that
this is a technology category with true mainstream appeal (niche technologies
typically have a young male skew).
Home content consumption is stuck in silos between
smartphones and tablets and the TV.
Content Connectors break down these silo walls by bringing digital
content to the living room’s main entertainment device. They disrupt TV broadcasters by getting
online video onto the TV and also TV manufacturers by turning dumb TVs into
smart TVs, thus neutering already weak sales of expensive Smart TVs.
Apple, Google and Amazon are digital content’s power brokers and Content
Connectors will increase their influence dramatically. Amazon, Apple and Google
have highly diverse ambitions but are each willing to loss lead on at least one
of device and content to establish their living room foothold. Consumers, presented with highly affordable device
and content pricing will adopt both in droves.
Google is the most interesting of the three big tech companies. Content
and device strategy both matter to Google but less so than to either of its two
peers. Google’s end game is consumer
data, being able to paint the 360 degree picture of the consumer and to build
advertising and other business around that information. Thus we see Google clearly loss leading with
Chromecast but with no particularly bold ambition for paid content.
Smartphones and tablets did a great job of getting
paid content kick started but the market will transform in scale and appeal
when it gets onto mainstream consumers’ TVs. Content Connectors will transform
the face of paid content across all content genres. In fact, they are an iPad moment for the
mainstream living room.