Mobilizedtv

Six Tips for a Digital Transformation

At the Tech Retreat of the Hollywood Post Alliance–a confab of high-level tech executives in Hollywood–mobile TV was a hot topic. At a panel on Mobile TV, which I moderated, Jerry Whitaker of the ATSC (Advanced Television Systems Committee) detailed the technological underpinnings of the ATSC’s new Mobile Handheld (MH) standard and gave an update on
the roll-out of what the broadcasters are calling Mobile DTV. The DTV stands for Digital TV and is a reference to the fact that U.S. broadcasters just finished a long and costly transition from analog to digital TV. Though digital TV, or DTV, is often understood as High Definition TV (HDTV), broadcasters have also used the spectrum to multicast their signal into several different broadcast stations or offerings. With the advent of the Mobile ATSC standard, these same broadcasters are multiplexing (or splitting) off part of the signal to provide on-air broadcasts to mobile devices.

Whitaker revealed that seven stations have already begun their Mobile DTV broadcasts, which includes a model Washington, D.C. model station. He estimates that 100 stations will be online with Mobile DTV by the end of 2010.

GOTV Networks was also represented on the panel, as Thomas Ellsworth and Rubber Duck Media Labs Paul Childers described the mobile TV model they have been successfully involved in for the last several years. TDVision’s Ethan Schur also spoke about the possibilities of viewing 3D content on mobile devices.

Mobile TV was also a topic of discussion by Mark Borao of Ernst & Young who spoke about the “Direction of the Digital World” in media and entertainment. Sharing insights gained from conducting studies with CEOs and CFOs, Borao noted that “CEOs are focused on balancing the shift to the digital future with the realities of the present.” “They’re most excited about new content creation and internet media,” he continued. “They’re taking money out of traditional models for new models they’re taking bets on. Their top priorities are to develop new product and balance the transition to a new business model.”

The digital transition is forcing tough decisions, he added. “You’re competing with free, so it’s a time issue more than a dollars issue,” he said. “Everyone believes digital is where they want to go, but they don’t know where to go. They’re not sure what that means for them.” That destination is most likely to mobile and broadband.

“Broadband and mobile devices are the foundation for change,” said Borao. “Consumers continue to adopt digital media on a global basis. Time spent on traditional media is declining. We advise clients all the time where to spend their marketing dollars. In the studios, it’s an interesting question. What made you go see the last movie you saw? Which made you do a digital download through Netflix? Those are the questions people are starting to struggle with as these trends continue.”

Media and entertainment companies are focused on a range of strategic and tactical initiatives, with the single biggest issue being how to protect the content. “There’s piracy but also the tracking of it, internally,” he said. “Everyone is rethinking distribution. Do I need seven distribution capabilities within the company? Monetization tends to be the tough one. When we search online, we want it to be free, but free doesn’t pay the bills. Everyone is exploring this. Ad-supported content creates royalty obligations. With regard to analytics, It’s not just measuring what you’ve got but now you have assets that people are interested in.”

Borao listed issues you need to touch on in a digital transformation:

1. Digital supply chain–Companies invest millions in a physical supply chain but the digital supply chain is run off FTP. Companies need to make investments in this area and understand how these processes converge.

2. E-commerce. Where you locate your physical media can have tax implications. Location strategy is key, especially when the company is global.

3. Content protection

4. Contract and IP management-–”We see the most transformation required in this area. Do you really need 3,000 variations of studio accounting to determine a royalty? There are complex rules that have been around for 30+ years. As the financials continue to erode, people are looking at how to approach this. New Media deals brokered in 2008 started a lot of change.”

5. Inbound royalties (which are very hard to audit) and outbound royalties-–”As companies go digital, implications for royalties must be considered.”

6. Digital CRM-–”How do you entice, market to this brave new world? This is the biggest question I get asked.” The answer? “When you get people tied into a community, they get sticky in that relationship with you.”

Tags: 3D mobile, analytics, ATSC, ATSC MH standard, Ernst & Young, GoTV Networks, HPA Tech Retreat, Mobile DTV, mobile television, monetization, Rubber Duck Media Labs, six tips for digital transformation

This entry was posted on Tuesday, February 23rd, 2010 at 8:30 am and is filed under Advertising/Marketing, Content, Devices, Home Feature, Monetizing Mobile.