Although the digital strategy adopted by 60% of media and entertainment (ME) companies relies on mobile apps, it is IoT that will directly influence the market’s 16.5% growth by 2018. Here’s how the Internet of Things will take the media and entertainment industry to the next level.
IoT in Media and Entertainment: background
The Internet of Things is the global digital environment where various objects (both consumer electronics and things with no built-in connectivity capabilities) collect data through sensors and exchange it over a network. In a nutshell, the new technology enables us humans to teach objects to respond to our presence, voice commands, motion and even changes in facial expressions. Many industries including agriculture, healthcare and education turn to connected solutions in order to reduce operating costs, increase employee productivity and improve asset management. Media and entertainment companies are no exception. Since more customers access content from smartphones, tablets and wearable devices, the number of ME-related IoT connections continues to grow. Last year Verizon, the largest US wireless communications service provider, reported[1] a 120% increase in IoT connections within the media and entertainment sector; only two other industries – that is, manufacturing and insurance – were growing quicker. By 2018 the average IoT spending by a media and entertainment company will reach $ 72.6 million per year (up from $ 47.2 million in 2015). It’s all about sensors According to eMarketer, IoT will eventually prove beneficial for all types of media and entertainment companies, but it’s publishers and broadcasters that start getting value from the new tech right now. The sensor technology is a crucial component of any IoT solution. Sensors track different physical parameters regarding a user’s location, movement, activities and well-being and transform the measurements into raw data. ME companies can leverage the data for crafting detailed customer personas, increasing ad revenues and delivering personalized content. Pandora, a music streaming and recommendation service with over 80 million users which can be accessed through a dedicated app or web browser, has launched[2] a standalone channel that only plays the music you like. Users who listen to at least 4 different Pandora radio channels can mark songs as “thumb-up” or “thumb-down”. Pandora’s algorithm selects your favorite tunes and plays them on the Thumbprint Radio. Users are welcome to edit their thumbs profile. What if ME companies let their customers interact with content in the same way? That’s what Amazon did with Echo. The stylish speaker uses the Alexa voice recognition technology and is considered the best and most commercially successful home assistant on the market. It performs[3] a wide range of functions including reading Kindle books aloud, booking rides with Uber, managing Spotify playlists and orchestrating other home appliances.
IoT in Media and Entertainment: top 4 applications
Less than two years ago 87% of respondents who took part in the Acquity Group research didn’t know what the Internet of Things was. The lack of consumer awareness is the key factor that prevents ME companies from engaging in the field. Also, 50% of Internet users are reluctant to share personal data with brands (even if it impacts their online experience). And don’t forget about security. We’ve all heard about hacked baby monitors and not-so-smart refrigerators that steal Google account credentials and generate spam. Are you really capable of protecting customer data? If you consider going IoT, you should do it responsibly. First, conduct a proper marketing research to evaluate smartphone and wearable technology adoption rates among your target audience. Second, hire an experienced business analyst to determine what type of IoT solution would suit your company best (and whether you actually need one). Finally, address a reliable software development company to develop scalable and 100% secure software to power your Internet of Things ecosystem.
[1] https://www.emarketer.com/Article/Internet-of-Things-Changing-How-Media-Entertainment-Companies-Operate/1013545
[2]https://www.cnet.com/news/pandora-launches-new-personalized-station-based-on-your-thumbs-ups/ [3]http://www.trustedreviews.com/amazon-echo-review [4]http://www.business2community.com/digital-marketing/internet-things-future-advertising-01454524#dHCGYSuOEudJDFYV.97 [5]http://www.bandt.com.au/media/ernst-young-report-internet-of-things
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