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Digitally Yours

Analogue bites the dust – What’s the big deal?

Original article: www.imediaconnection.com/summits/coverage/20574.asp
Why the death of analog will change the industry.

Exciting times! This ‘brave new world’ that we’ve been hearing about is so tantalisingly close, you can see new elements of it entering our lifestyle on a daily basis. Actually to be more accurate, you can hardly escape it. Every new technological device that enters the market is a potential new platform for your engagement, giving more entertainment options than ever before, even changing the way we think (but more on that later).

Are you ready?

According to the Australian Communications and Media Authority (ACMA), digital television is watched by 42% of households, and digital televisions now account for about 25% of overall stock. ACMA Chairman Chris Chapman reveals better picture quality to be the key reason for digital television uptake, with extra channels and new content driving unusually strong growth in Tasmania and Mildura (both comfortably exceeding 60% uptake).

What’s stopping you? Well, the ACMA research suggests 24% of households simply aren’t interested in TV, don’t feel the need to change, or would rather spend their money elsewhere. More contentious though is the fact that many households just can’t receive digital TV yet (54% of television-watching households receive digital services), while a-third of the nation is unaware of the analogue switch-off.

2013 is slated in as the year television’s analogue signal draws its final breath (2009 for the United States), and the effect will be more profound than simply having to turf the old TV in favour of a digital-ready idiot box. It’s not an entirely new concept by any means, as free-to-air channels in Australia have been broadcasting since 2001, and we’re continuously gaining momentum with turning technological potential into commercial reality. To illustrate this more clearly, Mark Kvamme (general partner at Sequoia Capital – United States) recently scribed a 10-strong list of reasons why the switch to digital is changing the world – here is a consolidated summary of his comments.

How Digital is changing the World

1. Old: Appointment Media New: On-demend

With exception of certain events – sporting events as an example – media information and entertainment will be freed from the constraints of schedules. Kvamme reveals “I don’t know what we’ll do around water coolers anymore”, in reaction to the concept that people will watch what they want, when they want, as opposed to the same scheduled time that everyone else does. No more “I wonder what’s on the telly…” the answer is: whatever you like.

2. Old: Individual Media New: ‘The Cloud’

‘The Cloud’ that Kvamme is referring to here is the evolution to user-defined media. The notion that media is placed in a newspaper for example will be outmoded; rather content can now be created, and it’s up to the individual consumer to decide how to view it.

3. Old: Information Generation New: Attention Generation

This shift evolves almost by default in response to the two previous points. With the constant rapid expansion of options available to audiences of media, those audiences are fragmenting so the fight for their attention also constantly grows. Having already mentioned that content will be delivered when and where an individual wants it, this is virtually secondary to getting their attention in the first place.

4. Old: The Product New: The Experience

From a marketing standpoint, creating brand loyalty and increasing levels of engagement is less about the product than creating a rich experience for the individual consumer. So expect to see media offerings adopting a more holistic approach to keep you from looking elsewhere for entertainment. Social networking sites – like facebook, myspace – are prime examples; there is no product per se, but the experience generated by the social-marketplace is so engaging that phenomenon such as ‘facebook addiction’ are an increasing trend.

5. Old: TV Guides New: Search

With the proliferation of digitally delivered information and entertainment, the venerable TV guide may be a thing of the past. Search engines continually refine their offerings to facilitate a more powerful and enriched experience, with more visual information being the latest demand. Kvamme highlighted Searchme.com, which provides views of the site and allows videos to play on the generated results page to make it a powerful platform for media search.

6. Old: Reach & Repetition Ad Campaigns New: Word of Mouth

“Hey have you seen the clip on youtube? Watch it, it’s awesome!” What better way to steer an audience to your media offering than with an endorsement from friends / peers? The uptake of this strategy is gaining momentum as the marketing vehicle of choice; it’s a better fit with a user-chooser world where every last advantage has to be leveraged just to get your attention.