How the Coming Digital Content Revolution Will Change Everything

The 20,000 Foot View

Content Connectors, devices such as Apple TV, Google’s Chromecast, Amazon Kindle Fire TV and Roku, are set to transform the way in which mainstream consumers interact with digital content.  Current adopters of these devices are the most valuable paid content consumers across all content genres, not just the video for which Content Connectors are best known.  These devices have already gained solid market traction but their combined potential is far greater.  If this potential is realized Content Connectors will transform the relationship consumers have with content, driving paid content towards the mass market but also threatening to break down the dividing walls between multiple media industries.

Key Findings (Data Points Are Removed From This Preview Summary)

  • Home content consumption is stuck in silos between smartphones and tablets and the TV.  Content Connectors break down these silo walls
  • X% of consumers have a Content Connector, with the US leading with X%.  Approximately X million of the devices have been sold globally
  • Content Connectors disrupt TV broadcasters by getting online video onto the TV and TV manufacturers by turning dumb TVs into Smart TVs
  • Content Connector adopters are highly valuable consumers and are more than twice as likely as overall consumers to pay for most forms of digital content
  • Content Connectors may drive a decline in overall media consumption time by reducing media multitasking
  • They may also provide the opportunity for music to finally establish a beachhead on the TV, though with YouTube the most likely winner
  • X% of Content Connector consumers are female, indicating that this is a technology category with true mainstream appeal
  • Amazon, Apple and Google have highly diverse ambitions and are suitably different that the market is likely to be able to support all three
  • Content Connectors are an iPad moment for the living room and may transform the face of paid content across all content genres

Companies mentioned in this report: Amazon, Apple, Google, Roku, Netflix, Hulu, Amazon Prime, Facebook, Twitter, YouTube, Samsung, Sony

Price includes excel dataset