The proliferation of the internet of things and the resultant interconnection between billions of devices is going to help the media and entertainment industry in a massive scale, says a recent report from Ernst & Young.
According to the report, the M&E industry is already using categories of sensors such as inertial, motion and image sensors used in animation, gaming, video images, camera stabilization, sports and 3D. This is opening up new, intimate entertainment experiences for consumers.
“Armed with meaningful insights about consumer behaviors and preferences, M&E companies will be able to use data to deliver highly personalized, contextually relevant entertainment experiences to help people reimagine their experiences on devices they already own,” says Chris Gianutsos, Executive Director, Media & Entertainment Advisory Services, Ernst & Young
“To fully exploit the potential of IoT, there’s also an opportunity to expand to platforms that may not be considered part of the entertainment ecosystem or even exist today … think about having news and information delivered on household appliances or video streaming in self-driving cars. We expect this will dramatically redefine consumer expectations in the near future.”
For M&E companies to realize the full potential of Internet of things, the report suggests, they need to consider the associated risks, including regulatory hurdles, legal precedents, intellectual property rights, lack of connectivity standards and lack of IoT scale to reach critical mass, the report finds. The biggest challenges are around privacy and cybersecurity. Protecting personal information is an issue that will become exponentially more difficult as IoT collects enormous amounts of data and connects more devices, software, machines and humans.
Gianutsos says, “IoT is both disruptive and inevitable. For M&E companies to be successful, they will have to address risk and quickly innovate to respond to evolving customer needs and deliver rich content experiences. Only then will the M&E industry find real value in its IoT investments.”
One of the most anticipated benefits of IoT for marketers is its potential – through the use of sensors – to unlock data on a person’s habits, preferences and most significantly, the context in which media is being consumed. Better data analytics will also address deficiencies in the current measurement system for media consumption, such as avoiding the duplication of unique users across platforms, and enhance what marketers know about their audiences.