Video Consumption Growing While User Experience Lags Behind
More than half of consumers watch videos on mobile devices – expected to grow 45 percent in three years
September 18, 2017
Share this

Digital video consumption is viral and, according to a new study released by IBM and International Broadcasting Convention (IBC), more than half of the 21,000 consumers surveyed are using mobiles every day to watch streaming videos, and that number is expected to grow 45 percent in the next three years.

Today, the explosive growth of new digital content available via online video distribution networks such as YouTube competes directly with traditional broadcasting creating a new connected landscape with data at the center. With this shift in industry competition, media and entertainment companies aim to maximize content investment and return while providing a differentiated and exceptional customer experience. Ninety-two percent of surveyed media and entertainment executives say cognitive technologies will play an important role in the future of their business.

The Creating a living media partner for your consumers: A cognitive future for media and entertainment study, conducted by the IBM Institute for Business Value (IBV), is based on findings from two studies. The first is a survey of nearly 21,000 consumers in 42 countries about their video consumption habits, and the second offers insights from 500 global media and entertainment executives about the impact of cognitive computing on their industry.

Globally, the study found 51 percent of surveyed consumers -- and 67 percent in emerging markets — access free, over-the-Internet video from providers such as YouTube, Facebook and Snapchat, whereas 48 percent access video through regular subscription services from traditional pay-TV providers. Among the 55 percent of surveyed respondents who watch video regularly on mobile devices, about a quarter spend one to two hours using mobile broadband instead of WiFi.

Despite consumers’ drive to go mobile, many respondents say the experience leaves much to be desired. For example, 65 percent of surveyed consumers very often or regularly experience buffering problems and 62 percent have long waiting times to start a video.


Although media companies have advanced in recent years, most lag digital disruptors in the application of data, machine learning and advanced automation to deliver next-generation experiences at scale. Cognitive capabilities can play a critical role in this transformation by unlocking and interpreting previously inaccessible data, yielding audience, content and contextual insights that can help media companies reach viewers with compelling, personalized experiences.

With the rapid evolution of customer preferences and demands, media companies face immense pressure in a hyper-competitive market. The IBV and IBC recommend organizations embrace the opportunities that the marketplace is currently presenting by:

Applying cognitive technology to achieve personalization

Delighting and engaging each individual consumer by understanding the personalized, in-the-moment experiences each customer craves is critical. Cognitive applications in media and entertainment can help do just that, by delivering audience insights and content enrichment, as well as content prediction to create a compelling customer experience based on audience preferences, affinities and tastes.

Revamping infrastructure to meet the coming demands

Moving from several hundred channels to several million “cable channels for one” that predict and serve individual needs in real time will require much more flexible and scalable processes. Companies will need to implement hyperscalable systems to manage the ever-expanding data processing necessary to analyze, personalize, and distribute video content. Such a platform must be scalable to accommodate growth, resilient to support uninterrupted service and secure to manage identities and protect valuable assets.

Content value chains — from acquisition through production to distribution — need to be unified, requiring workflow automation, which must consider the media content, associated rights and technical and descriptive metadata.

Media workflow systems must monitor system infrastructure, the location of content and distribution channel characteristics. By applying cognitive methods to both audience insights and content distribution, media companies can create an architecture that scales automatically based on predictions of audience demands and peak loads, helping to match costs and resources dynamically to changing market conditions and business or operational needs.

Reengineering business models to profit from in the new media landscape

Media companies will need to make backend systems and processes more intelligent to fully monetize the new opportunities while cutting costs and refocusing investment on content and customer experience.

As media companies look to the future, those that apply data to optimize revenues and costs and strip out non-core activities will free up funds to reinvest in content and enabling technologies, driving further growth and success. Emerging technologies like cognitive solutions and blockchain may play a key role in that future. Industry leaders will be those who can institutionalize such capabilities as part of their Digital Reinvention efforts and focus their companies on investing in great content and delivering superior customer experiences.

Share this

The Latest

February 20, 2020

Over 70% of C-Suite decision makers believe business innovation and staff retention are driven by improved visibility into network and application performance, according to Rethink Possible: Visibility and Network Performance – The Pillars of Business Success, a survey
conducted by Riverbed ...

February 19, 2020

Modern enterprises rely upon their IT departments to deliver a seamless digital customer experience. Performance and availability are the foundational stepping stones to delivering that customer experience. Along those lines, this month we released a new research study titled the IT Downtime Detection and Mitigation Report that contains recommendations on how to best prevent, detect or mitigate brownouts and outages, given the context of today’s IT transformation trends ...

February 18, 2020

While Application Performance Management (APM) has become mainstream, with a majority of tech pros using APM tools regularly, there's work to be done to move beyond troubleshooting ...

February 13, 2020

Over the last few decades, IT departments have decreased budgets in part because of recession. As a result, they have are being asked to do more with less. The increase in work has amplified the need for automation ...

February 12, 2020

Many variables must align for optimum APM, and security is certainly among them. I offer the following APM predictions for 2020, which revolve around the reality that we will definitely begin to see much deeper integration of WAN technology on the security front. Look for this integration to take shape in the following ways ...

February 11, 2020

When it comes to growing a successful company, research shows it isn't about getting the most out of employees, but delivering an experience that empowers them to be and do their best. And according to Priming a New Era of Digital Wellness, a new study conducted by Quartz Insights in partnership with Citrix Systems, technology is the secret to doing so ...

February 10, 2020

Only 11% of website decision-makers feel that they have complete insight into the scripts that they use on their websites. However, industry estimates state that about 70% of the code on a website comes from a third-party library or service. Research highlights a clear need to raise awareness of the potential threats associated with the vulnerabilities inherent in third-party code ...

February 06, 2020

The ever-increasing access and speeds offered by today's modern networks offer many advantages to businesses and consumers, but also make the integrity of their performance and security more paramount than ever before. Organizations are struggling to manage the constant fluctuations in network conditions and security threats. This has prompted many to explore how automation can help to streamline network management and security processes ...

February 05, 2020

The demand to deliver a consistently positive and innovative customer experience is something that many companies — more specifically, their DevOps teams — are currently grappling with. While the ability to push out multiple features a week may appear as a great accomplishment for DevOps teams, our survey showed that 82% commonly discover bugs in production ...

February 04, 2020

Ensuring reliable data security is a critical part of Application Performance Management (APM) — or at least it should be. The fact is, as a result of our need for speed, increasingly development teams are confronted with the problem of releasing applications faster without compromising security ...