IBM Business Consulting Services IBM Institute for Business Value Media and Entertainment The end of television as we know it A future industry perspective IBM Institute for Business Value IBM Business Consulting Services, through the IBM Institute for Business Value, develops fact-based strategic insights for senior business executives around critical industry-specific and cross-industry issues. This executive brief is based on an in-depth study by the Institute’s research team. It is part of an ongoing commitment by IBM Business Consulting Services to provide analysis and viewpoints that help companies realize business value. You may contact the authors or send an e-mail to
[email protected] for more information. The end of television as we know it A future industry perspective Executive summary next five to seven years, there will be movement on both Television (TV) has an inspiring past, ripe with milestones of these fronts – but not uniformly. The industry instead back to 1831, when British physicist and chemist Michael will be stamped by consumer bimodality, a coexistence 1 Faraday discovered electromagnetic induction. The of two types of users with disparate channel require- medium came of age in the 1950s, with popular shows ments. While one consumer segment remains largely like I Love Lucy, the 1954 World Soccer Championship, passive in the living room, the other will force radical color broadcasting and the beloved remote control. For change in business models in a search for anytime, several generations, the TV audience happily embraced anywhere content through multiple channels. The tech- scheduled programming. For the industry, making a and fashion-forward consumer segment will lead us to a connection with consumers was a pretty straightforward, world of platform-agnostic content, fluid mobility of media one-to-many experience…until recently.