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Telcos unlocking 3-Screen Revenue Opportunities

This guest post by Telco 2.0 partner Wipro Technologies describes the 3-screen opportunity, and a broad-based solution construct for ‘Content Monetization Solutions’ which are critical for realizing the opportunity. There’s more on the 3-screen opportunity in our Digital Entertainment Research Stream and at our Digital Entertainment 2.0 Americas (5-7 April, Palo Alto) and EMEA (11-13 May, London) events.


As the Media industry continues its shift towards the digital world, Studios, Music labels and TV/Cable networks continue to be faced with wider and better opportunities of monetizing content aided by direct and engaging connections with the end consumers. Laptops/ PC’s, TV’s, mobile phones, pads/ ebooks and in some instances directory or information screens make up this 3-4 screen world.

In turn, consumers are satisfying their appetite for media (Audio / Video / Images) infotainment by consuming using multiple screens targeting specific content and services appropriate to the device, the time of day and personal situation or need of the individual. This world involves more devices… but very often without replacing what has preceded it.

Wipro roles diag.png

* Source: Nielsen Report Sep 2010

In this digital, device-driven transition, media companies need to ensure that their value is not undermined in the process. Additionally, the rich customer experience that video and multimedia brings cannot be diminished. Today’s consumers are technology savvy in their interactions and transactions around digital media.

The landscape of traditional television is facing a ‘sea change’. Linear broadcast is no longer sufficient to hold consumer attention. Pay TV is facing increased competition from Digital Terrestrial TV and streaming, on-demand and Over-The-Top (OTT) video based services with selective competition from Mobile TV in specific genres.

Most video inventory is today supported by a traditional advertising model. This includes news clips; special events include world cup / Olympics, user-generated content, TV shows and more. Advertising remains a key revenue source for broadcasters with higher CPM rates ranging between $10 and $100, although revenues can be volatile. Publishers are looking for avenues that could provide greater stability to 50% or more of their company revenues. Where might this come from?

The Need for Content Monetization

  • Nielsen recently reported that 42% of consumers are willing to pay for content online. The opportunity exists today to monetize, and potentially surpass, revenue generated through video advertising networks.

  • Forrester Research predicts the online video advertising market will reach $7.2 billion by 2012. Highly targeted advertising needs to be delivered in a variety of innovative, user-friendly formats which yield a high CPM.

Monetizing Content inventory beyond broadcast is an economic necessity for the media companies but the business models are changing and evolving as new devices and services cause disruption.

Some key objectives for Media Companies include:

Wipro bullets diag.png

Content Monetization Solutions

Content monetization solutions are a generic set of technologies integrated to address these needs. The core components are a Content Management System, Inventory and Campaign Management, Subscription Management, Portal Infrastructure, Storefront, eCommerce, Billing and CRM.

Wipro Syst diag.png

The following is an ‘idealised’ set of system roles and functions needed by Media companies looking to exploit these opportunities on which Wipro bases its systems’ designs:

  • Content Management - where the content strategy should be defined with product definitions, product / content classifications, metadata, storage and unit pricing.

  • Inventory and Campaign Management - robust inventory management to enable dynamic product creations ‘on the fly’; be it single product or bundles with complex pricing engine configuration.

  • Campaign Management - enable marketers to create, optimize, contextualize and deliver the right campaigns at the right time. This should include real time campaign serving, performance-to-conversion ratio tracking and flexible/ configurable reports.

  • CRM - enable business to understand customer preferences, identify prospects, sales force automation, customer support and service, flexible customization and deliver powerful Customer Relationship Management solutions.

  • Store Front - includes product catalogue creation, multiple product layouts, customized look and feel, and search engine optimized, carrying price engine rules and definitions.

  • E-Commerce - Enables users to add their preferred products to the cart and fulfill the purchase through secure payment gateway. This helps retain recurring customers and simplify the search process.

  • Paywall - allows premium content access only to paid users. Should include comprehensive business rule definitions, customer profiling information, analytics, alerts & notifications. This is the core engine that unlocks new revenue opportunities including advertising and launch of new business channels.

  • Portal - provides the base infrastructure key services and integration points, and user management, help, faq, collaboration, roles and permissions, search etc.

  • Subscription Management - enables subscription management and commerce based transactions.

  • Promotions - incorporates loyalty points, bonus, and discounts definable to provide value-adds or benefits to the users thereby attracting more subscriptions.

  • Billing - enables micro payments - be it ‘instant buy’, pre paid, post paid, or royalty points.

  • Delivery platform - supports Offer Fulfillment phase where new media and device strategies are deployed.

Example Functions, Workflows and Media for to Unlock 3-Screen Revenues through Content, Experience, Engagement and Monetization.

Wipro flow diag.png

The author of this post is Steve Snyder, Vice President and Head - Media and Entertainment Business, Wipro Technologies.

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