The study "The Age of Curation: From Abundance to Discovery" by international management consultancy Bain & Company analyzes the use of digital formats by more than 6,000 consumers in Brazil, China, Germany, France, the UK, India, Russia and the USA and reveals major differences between industrialized countries and emerging markets.
In mature markets such as the USA, the UK, Germany and France, the number of smartphone owners literally exploded in 2013 with an average of 64% compared to 49% in the previous year. Brazil, Russia, India and China (BRIC) increased from 24% to 37%. In the industrialized nations, 39% currently have a tablet PC, compared to 18% in 2012. Emerging markets account for 21% - up from 13% in 2012. Almost 70% of subscribers to online video services in industrialized countries now also consume more videos than three years ago. The situation is similar for subscribers to internet music services: almost 60% spend more time listening to music than three years ago. People who own several devices also watch more videos. In industrialized countries, around 70% of multi-device users consume more videos today than in the past - in contrast to 45% of average users. In the emerging markets, as many as 83% of multi-device users are watching more videos than three years ago. For the average user, this figure is only two thirds.
"Tablet PCs and smartphones are becoming a permanent means of watching movies, playing games and listening to music on the go," says Imeyen Ebong, Partner at Bain & Company and head of the Media, Tech & Telco practice group in the German-speaking region. "These devices represent a quiet revolution in the lives of millions of people who increasingly want to access digital content around the clock and everywhere."
However, the study also reveals major differences between the individual markets and formats. In the UK and the USA, for example, 40 percent of respondents have read at least one e-book in the past year. In Germany, this figure is only 26 percent and in France just 17 percent. In 2013, 76% of consumers in the USA watched online videos. In the UK, the figure was 70 percent, in France 67 percent and in Germany 63 percent. Internet music services such as Spotify, Google Music and Pandora have almost doubled their user numbers since 2012. The USA and France have the highest usage rates in this segment at over 40%. These are significantly lower in the UK at 30% and in Germany at 27%.
In addition to media usage - downloads are now being replaced by streaming - the study also shows how consumers discover new content. More than 85% of respondents in the industrialized countries and almost 70% in the BRIC countries access at least one of the well-known platforms such as Amazon, Apple, Google and Sony to buy or view digital content in all possible formats. The average number of platforms used varies between 2 in Germany and 2.9 in the USA.
In addition, users in all industrialized countries now listen less to reviews from professional sources, preferring instead to trust personal recommendations from their social networks. Less than half still rely on reviews from professionals, while over 50% prefer the advice of other customers. In China and India, two thirds are also willing to provide personal data in exchange for personalized video and music recommendations. In the USA and the UK, this figure is only half, and in Germany and France even less than a third.
In the current study, Bain shows three ways in which traditional media companies continue to play an important role in a market in which online platforms increasingly have direct customer contact:
1. invest in your own content and thus strengthen your influence on production: Publishers of all formats are still in the best position to drive innovation and product development, produce content and develop an audience and make it profitable - even if platforms such as Netflix are already experimenting with their own content.
2. leverage economies of scale to retain access to talent and capital: Media companies still manage to monetize high-quality content with traditional audiences. This puts them in a promising position to develop and offer content that will continue to generate a broad audience in the future - even on digital platforms.
3. drive data analytics to complement the publishing approach: Media producers need to invest in consumer data and more customer data-driven approaches for their marketing, program planning and creative processes if they want to compete with online platforms in the future.
"Today more than ever, successful strategies are driven by quality and original content that stands out in an increasingly cluttered market," says Bain expert Ebong. "But these strategies require analyzing data on consumer behavior. Connecting these two worlds is the biggest challenge, but also the most promising opportunity for today's media companies."