Recently I
was thinking of the increase in adoption Over-The-Top (OTT) players have gained
and the consequent dilemma it’s wrapping around operators who now have to
grapple with the concern of who owns and influences the consumer.
This also got me thinking about something else we tend to hear a lot, that term “Content is king” which has become a catchphrase in telecom parlors. It therefore begs the question of who owns/controls the (mobile) content consumers voraciously consume on a daily basis?
Certainly not the operators but rather the likes of Youtube, Instagram, Snapchat for user generated content, to Iroko, Apple, Showmax for your movies and TV shows to mention a few.
This also got me thinking about something else we tend to hear a lot, that term “Content is king” which has become a catchphrase in telecom parlors. It therefore begs the question of who owns/controls the (mobile) content consumers voraciously consume on a daily basis?
Certainly not the operators but rather the likes of Youtube, Instagram, Snapchat for user generated content, to Iroko, Apple, Showmax for your movies and TV shows to mention a few.
After all, operators simply
provide the pipe much like a highway with a tollbooth giving one access to a
destination. Consumers invariably will cease to care which pipes are feeding
the content, and would rather, as they should be only interested in making
decisions about which show, news or user generated clips they seek. In almost
all markets in Africa there are several alternatives available for consumers to
pick from and not just with the major operators but also new 4G entrants that
are still small, and independent ISPs, all providing access-ways to content.
Is it therefore better to own and
manage access to the pipe or control of the content? I believe that ultimately
whoever controls the content will own and influence the consumer to pick
whichever pipe they want to use as an access point. AT&T by acquiring Time
Warner (if approved) will have control of the content and the pipe thereby
giving them a stake in both arenas. It is already offering access to premium
cable channels for free with certain mobile packages to tie in consumers. Other
MNO’s are realizing the shifting consumer behavior and are appointing Digital
Officers who will primarily be responsible for developing their content
ecosystem.
Now why is mobile content
relevant for Africa? If you think about it, most individual’s primary source of
entertainment in Africa is their mobile device. Very few have access to flat
screen TVs, which is still a luxury by the way, to watch movies and shows.
However pretty much everyone has a mobile phone of some sort that is used for
listening to music, news, sports, movies etc. As a result, mobile content is
fast becoming the channel of choice for consumers that like to access their
shows on-demand and not be subjected to TV schedules.
For instance, my son and his
friends consume most of the content they like on smartphones. Their smartphones
have eclipsed television as the entertainment tool of choice where they can
share clips, movies, music and chat amongst themselves through various apps.
This group hardly ever uses voice; their preferred mode of communication is
chat and video calling. They really do not care which network their friend is
on it is irrelevant. For this group it is what content they can consume,
access, or share amongst themselves and the service (OTT) that allows them to
do it that matters most.
Some operators are beginning to
look beyond infrastructure and experiment with digital models, however many are
still yet to adapt to the shifting landscape.
Whoever is able to figure it out first and lock in providers and
consumers, will leave the rest playing catch-up. Content (in the broader
sense), therefore really is king…or is it not?
*Tenu Awoonor is an international business executive with
experience in both the private and public sectors. He has proven himself to be
a telecommunication and turn-around specialist, specifically in mobile and
financial services arena. On twitter, his handle is @TAwoonor and LinkedIn .
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