20141105-Bain-Generation_Hashtag_A_New_Wave_of_Content_in_the_Age_of_Digital_Natives_24页_6mb

Generation #Hashtag: A New Wave of Content in the Age of Digital Natives - Summary

Executive Summary

Bain & Company's report highlights a third wave of media formats moving beyond physical and digitized forms to native digital content, driven by Gen #Hashtag. This group includes digital natives and migrants who favor streaming, subscriptions, and new consumption models. The shift is fueled by widespread digital device use, and while monetization remains challenging, opportunities lie in emerging markets and innovative strategies.

Key Trends

• Digital Consumption: Pervasive use of smartphones and tablets leads to high digital media adoption across all ages, with younger consumers leading the shift toward native formats like streaming and user-generated content.
• Native Digital Formats: New models like subscriptions, microtransactions, and data-driven monetization replace traditional ownership-based systems, spreading across music, video, and gaming.
• Monetization Challenges: Profitability varies; many models show high growth but thin margins, requiring rethinking to balance advertising, subscriptions, and data utilization.
• Emerging Markets: Growth potential is high in developing countries due to rising smartphone penetration and Gen #Hashtag adoption, offering alternatives to piracy.

Recommendations

• Invest in Native Formats: Focus on innovative content creation and data-driven approaches to develop unique offerings.
• Rethink Monetization: Explore diverse revenue models, such as subscription-based services, microtransactions, and data sales, to enhance profitability.
• Strengthen Partnerships: Collaborate with communications networks and telcos to ensure reliable content delivery and support for new media platforms.

Conclusion

The media industry must transform to embrace native digital formats, address monetization issues, and tap into global growth, particularly in emerging markets, to sustain long-term value creation.