Precepta Studies




How the delinearisation process overturns the broadcast business model ?

posted Sep 26, 2015, 7:11 AM by Julien Pillot

A GENUINE REVOLUTION IN HOW AUDIOVISUAL MATERIALS ARE CONSUMED

The delinearisation process is not less than a genuine empowerment of  audiovisual programmes's consumers.  Such a revolution gives rise to an unprecedented situation in which broadcasters are progressively losing their historic competitive advantage : their ability to edit valued programme schedules able to bring viewers back regularly. Delinearisation allows customers to regain their freedom of choice : now, they can select the appropriate content, and watch it in the place, the screen and the moment of their choice. Even as new prefered formats arise, audiences become fragmented, and consumer's attention is more and more scarce, incumbents' business models are more disturbed than ever.  For mainstream medias, the shock is severe and their strategy have to be questionned. However, at the very core of the model transition, lie new market opportunities, and plenty of possible and efficient strategic schemes.


THE FIRST STEP OF A COMPLETE RECOMPOSITION OF THE AUDIOVISUAL INDUSTRY
 
As the perfect consequence of both the digitalisation (and the dematerialisation) of the audiovisual sector, and the change in consumers' preferences (such as binge viewing, ATAWADAC, etc.), the delinearisation process is not less than the first step of a sound - and unavoidable - recomposition of the audiovisual sector. With delinearisation comes an unrivaled burst of the value all along a much more complex digital chain than the traditional one. In such a nascent ecosystem, :
(1) commercial broadcasters have to think omnichannel and omnidevice, notably via avant-garde multimedia platforms ;
(2) integrating the content production (especially contents with international projection objectives) is a strategic imperative in order to experiment new formats, capture and retain viewers, and irrigate multichannel networks ;
(3) coopetition and co-creation agreements tend to replace pure rivalry.

This brand new - and admittedly - more complex competitive field still affords a lot of new business opportunities. To seize them, actors of the audiovisual ecosystem have no choice but to transform their business models, to pinpoint/get/(and then) capitalize on new strategic assets, and to operate the indispensable organizational adjustments to best manage the transition. This is the purpose of this study to provide businesses with an original "reading grid" to decrypt the different strategic opportunities flowing from moving environments, and to help them to manage change consistently. To be able to compete in such a Framework, they have no choice but to focus on these 3 major strategic levels : 
 

The business models and the new strategic links analysis

The essential assets valuation and winning response strategies

The examination of organisationnal mutations and new key expertises




STUDY DETAILS
Series : Precepta (PTAC)
Code : 5COM16
Paperback :  148 pages
Language : French
Publication date : June 2015
Price : € 2 400 [Commercial Link]

INTERVIEW ON "PRECEPTA STRATEGIQUES" CHANNEL

Magazine ediitors' new business models - The age of cross-channel diffusion

posted Jun 8, 2015, 6:06 AM by Julien Pillot   [ updated Jun 8, 2015, 7:28 AM ]

THE ENDING OF AN ERA, THE AWAKENING OF AN OTHER

The digital revolution entails a decompartmentalisation of medias as well as an overturn of information consumption practices.  For editors, the shock is severe and their strategy have to be questionned. However, However, at the very core of the model transition, lie new market opportunities, and plenty of possible and efficient strategic schemes.

 

The era in which the traditional two-sided model - e.g. intermediation between readers and advertisers - was the dominant design is over.  Indeed, the digital revolution establishes a new ecosystem of the press which is included into an enhanced continuum, from print to Internet, from connected screens to events. Although paper keeps its credentials, it is now just a dimension of a complex business, enhanced by large opportunities in the digital and non-media markets. 


REACHING PERFORMANCE IN ATTENTION-DRIVEN ECONOMIES AND MOVING FRAMEWORKS DEMANDS A COMPLETE RETHINKING OF TRADITIONNAL STRATEGIES AND THE ACQUISITION AND VALUATION OF ESSENTIAL ASSETS
 
Such a large amount of possible market strategies results in higher risk of scattering and crumbling investments. Consequently, the sound assessment of the consistency of strategic choices is - more than ever - recommanded. Both digital and habits révolutions introduce a whole new level of complexity in which there is no "best practices" and "one best way" yet to  solve magazine's editors issues. It is far too early to implement follow-on and imitation stratégies. Instead, it is necessary to test and learn from new formats, to replace old conventions by newer, and to experiment new assets combination to - possibly  - reach economic performance.  

Thus, efficient 360° value-creation strategies emanate from drastic and original choices made by press editors to get and enhance the most essential assets in an hybrid world (print/digital). Where the thinkings of businessess were often circumscribzed to arbitrations between readership, content and volume of advertisments, they now have to adopt a cross-channel dimension, which is evidence of a changing business. During this transition, editors progressively leave known and tagged territories to explore unknown horizons in which being continuously  innovative, transgressive, and creative is a fundamental prerequisite.

This is the purpose of this study to provide businesses with an original "reading grid" to decrypt the different strategic opportunities flowing from moving environments, and to help them to manage change consistently. To be able to compete in such a Framework, they have no choice but to focus on these 3 major strategic levels : 
 

The business models and 360° strategies analysis

The essential assets valuation

The examination of organisationnal mutations and new key expertises




STUDY DETAILS
Series : Precepta (PTAC)
Code : 5COM15
Paperback :  132 pages
Language : French
Publication date : March 2015
Price : € 2 900 [Commercial Link]

INTERVIEW ON "PRECEPTA STRATEGIQUES" CHANNEL

The distribution of household goods in a digital world

posted Dec 19, 2014, 1:40 AM by Julien Pillot   [ updated Dec 19, 2014, 1:45 AM ]

DESPITE CHALLENGING ECONOMIC CONDITIONS, THE DIGITAL CONVERGENCE IS GOING TO HELP THE MARKET TO REBOUND

Despite evident slowdown, the household goods market is full of opportunities for companies able to manage the digital transition efficiently. Our study shows that the market still enjoys significant expansion potential, especially thanks to important drivers of long-term structural growth. However, while the supply side of the market faces a deep paradigm shift, managing the digital transition remains the only way for undertakings to take plainly advantage from the forthcoming rebound.

 

TOWARDS 360° DIGITAL STRATEGIES

Fast-changing competitive and technological environments force firms to develop attack-minded 360° digital strategies. Most of the suppliers have already clearly noticed that cross-channel mechanisms are more than ever at the very core of such a strategy in order to benefit from synergies between their different channel of distribution. But, such mechanisms are far from being selfsufficient. As they seek to provide customers with "seamless journeys", suppliers have to explore new avenues and approaches of development, which shall include (among others) digitalization of physical stores, drive-thru services and augmented reality systems and experiences.

ADOPT THE "CO" ATTITUDE
Household goods suppliers also meet the sharing economy challenge, and especially the rise of collaborative consumption. Sharing, crowdfunding, leasing, second-hand : many emerging concepts are now undermining incumbent operators' positions. So much so that understanding true drivers as well as limits of that alternative form of consumption is likely to grant undertakings a real competitive advantage. While the rise of intermediation platforms on the web opens up new perspectives, traditional business models evolve to make room for more ccopetition, co-creation and co-marketing. For suppliers, time has come to adopt the "co" attitude. 


STUDY DETAILS
Series : Precepta (PTAX)
Code : 4DIS61
Paperback : 308 pages
Language : French
Publication date : December 2014
Price : € 2 400 [Commercial Link]

VIDEO TEASER

Marketplaces B2C : future of e-commerce ?

posted Oct 31, 2014, 1:36 AM by Julien Pillot

MARKETPLACES ARE PROGRESSIVELY EMERGING AS A DOMINANT DESIGN IN THE E-COMMERCE SECTOR

Platforms capitalizing on a win-win intermediation model, marketplaces have both attracted (and even converted) consumers and vendors. The former enjoys greater variety of products and extensive range of high level services, while the latter takes advantage of marketplaces ability to generate online traffic and to become unique commercial showcases. As for their owners, marketplaces have to be seen as an opportunity to generate important margins in monetizing the Internet audience, while pooling costs and risks traditionally beard by the sole retailers. For sure, the business-model has proven success. Still confidential just few years ago, marketplaces now represent a substantial part of the B2C e-commerce and become, naturally, very attractive for a growing number of undertakings from all walks (pure players, click & mortar, traditional catalogue-based mail-order retailers, etc.)

 

MARKETPLACES, NETWORK EFFECTS AND THE WINNER-TAKES-ALL PRINCIPLE

Despite the meteoric rise of the sector, no more than a handful of marketplaces will be successful, especially if they duplicate the business-model of Amazon.  Archetype of platforms likely to generate huge network effects, marketplaces are converge naturally towards market concentration, and disillusioned days to come for undertakings unable to quickly obtain a critical size, or to gain a strong position on a specific market segment. If marketplaces are unlikely to win the battle for audience, they have to win the one for relevance. Basically, to be successful in such a business, undertakings will have to be able to develop a true business expertise, to operate in a dynamic and complex ecosystem, to adopt a business-model suited to their own ambition, and to address the strategic challenges ahead.

 

THE CLASSIC BUSINESS MODEL IS NOT AUTOMATICALLY THE ONE BEST WAY

Some original business models emerge in addition to the classic one, and brings new opportunities to a growing number of companies. Freemium and dropshipping platforms now appears as viable alternatives to the pure performance related model for highly specialized marketplaces looking for relevance rather than audience. If not every retailer is intended to operate an audience-based marketplace, the very model of intermediation platform has a brilliant future in the e-commerce sector.


STUDY DETAILS
Series : Precepta (PTAX)
Code : 4DIS57
Paperback : 284 pages
Language : French
Publication date : October 2014
Price : € 2 400 [Commercial Link]

VIDEO TEASER

The media advertising networks market : crisis or transition?

posted Aug 17, 2014, 1:32 AM by Julien Pillot   [ updated Oct 17, 2014, 7:08 AM ]


A FAST-CHANGING ENVIRONMENT

In just a few years, advertising networks have become real suppliers of “tailored” plurimedia advertising solutions. In this way, they have largely annexed a value territory once over-dominated by media agencies. The transfer of value added activities to special operations, cross-media solutions and brand publishing has led to a sound mutation of organizations, professions and know-how in the ad networks sector. This transformation is far from being complete yet. New (r)evolutions are, indeed, expected in the next few years, especially due to the growing automation/computerisation of purchases and sales options and the increasing importance of data in marketing strategies.

 

AD NETWORKS HAVE TO DEAL WITH DEFLATION

The advertising market is now facing a structural deflationary trap. In such a context, ad networks fight for growth and the preservation of the advertising spaces value. And they are doing well : according to our data, major media advertising networks have clearly exceeded market expectations in recent years. Such results flow from their capacity to innovate, to diversify and to their high commercial tenacity. Regardless the perseverance they prove, managing the market decrease remains the harsh reality of ad networks. Torn between innovation/development requirements and costs control imperatives, ad networks are always looking for the best organisation possible, e.g. the one likely to help them to preserve a thin equilibrium between these two almost irreconcilable objectives.

 

RECONSIDERING THE CORE OF THE BUSINESS MODEL : THE ONLY WAY OUT ?

It is now urgent to reconsider the traditional ways value is created in the advertising market. Regarding the increasing advertising saturation, it is indeed no longer possible to neglect consumers preferences. The quest for efficiency is far too often gone together with the implementation of aggressive advertising facilities. Impact is not intrusiveness. Advertising avoidance strategies as  well as the rise of personal adblockers both threaten the very existence of many market segments and seriously challenge one of the great current belief that datamining will constitute the principal growth driver of the advertising market for the coming years. Indeed, there will be no data collection without ad cookies, and more generally, consumer content.

STUDY DETAILS
Series : Precepta (PTAC)
Code : 4COM14
Paperback : 387 pages
Language : French
Publication date : August 2014
Price : € 2 900 [Commercial Link]

VIDEO TEASER

The mutation of the performing arts industry

posted Aug 14, 2014, 8:35 AM by Julien Pillot


BUSINESS MODELS ARE ABOUT TO BE OVERTHROWED

Formerly, the performing arts ecosystem remained relatively sheltered from changes in consumer behaviour and arbitrations in time of crisis. Recent years have, nevertheless, make a radical change in the industry background : gradual reduction of public subsidies, increase in price which are now reaching their limits, technology boom, etc. Drivers of change are multiple, concern all levels of the sector (production, diffusion, performance hall management, ticketing, digital service providers, etc.) and are definitely about to overthrow dominant business models.


THE DIGITALIZATION PROCESS OPENS UP NEW MARKET OPPORTUNITIES

Businesses are not facing a mere evolution of dominant models, but a true revolution. In such a context, understanding the stakes flowing from digitalization to wisely select efficient market strategies is now an essential survival condition for a growing number of operators. First, the digitalization process gradually blurs lines between live, recorded and virtual performances. Second, the digital revolution opens up a myriad of opportunities : implementation of true 360° cross-channel strategies, community management, live streaming, improvement of customers intimacy and expectations (through data analysis), crowdfunding, online sharing services of concert videos, etc. With digitalization comes abundance of new concepts, but future success and value capitation are unquestionably linked to competition for the acquisition of scarce human and technological resources.


THE PERFORMING ARTS INDUSTRY IS WHETTING APPETITES AND LARGE MOVES HAVE BEGUN

Preserved from vertical integration strategies for a long time, the competitive landscape of the performing arts sector is deeply affected by the growing interest of new players from media and digital industries. The latter are engaged in vigorous competition in order to acquire essential assets such as concert halls or effective ticketing services. Such a sudden interest for the performing arts industry is not limited to the sole rent capture. The benefits of vertical integration notably include cross-channel strategies likely to create spillover effects on the performing arts markets in taking advantage of dominant positions in the media industries. But despite the significant ambitions of these large Groups, the final positions are far from being set since businesses are just starting to apprehend the forthcoming effects of the ongoing digital revolution. Numerous innovative digital services and concepts abound and are about to redesign the entire industry as well as the way we consume artistic performances. Far from having delivered its verdict, the digital war in the performing arts industry has only just begun.


STUDY DETAILS
Series : Precepta (PTAX)
Code : 4COM16
Paperback : 443 pages
Language : French
Publication date : June 2014
Price : € 2 400 [Commercial Link]

VIDEO TEASER

The French e-cigarette Market - Competition and regulatory challenges

posted Aug 8, 2014, 12:32 PM by Julien Pillot   [ updated Nov 1, 2014, 6:08 AM ]


PHENOMENAL GROWTH, GROWING UNCERTAINTIES

After just two years in existence, the French e-cigarette market already presents staggering figures : 1,5 million of regular users, about 2 000 specialized retail outlets, and a € 275 million market in 2013. Constant new store openings and the rise of e-commerce force authorities to quickly adapt European and National rules in order to meet economic, fiscal and public health challenges. In a context of fierce competition between retailers, forthcoming stricter legislative control measures, and expected offensives of both tobacco giants and alternative distribution channels, what about the true potential of the French e-cig market ?

 

KEY POINTS OF THE STUDY

  • Exclusive market figures and forecast scenarios to 2016

French market valuation and growth from 2010 to 2013, assessment and location of specialized retail outlets, impact on the tobacco and smoking cessation markets,
3 exclusive forecast scenarios to 2016, etc.

  • Focus on regulatory challenges

Analysis of current European regulatory debates on the e-cig legal status, focus on economic, fiscal and public health challenges, etc.

  • Analysis of new uses and demand evolution

Consumers preferences regarding distribution circuits and model of e-cigarettes, drivers for experimentation and usage, substitution rate between tobacco and e-cigs, etc.

  • Exclusive analysis of the competitive environment

Ranking of leading retailer networks and e-liquid manufacturers, financial performances of a panel of specialized outlets, SWOT Analysis of different retail networks, threats flowing from traditional cigarette manufacturers and retailers, identification cards of 26 leading firms, etc.

STUDY DETAILS
Series : Xerfi Research
Code : 4DIS42
Paperback : 128 pages
Language : French
Publication date : April 2014
Price : € 1 600  [Commercial Link]

VIDEO TEASER



UPDATE (SEPTEMBER 2014)

Interview given last September at the 2014 Vapexpo Edition 

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