Deloitte has announced an initiative aligning media, telecommunications and technology companies to meet escalating consumer demand for digital entertainment content. The Deloitte Digital Media Framework -- a combination of deep consulting experience and proprietary tools -- challenges the current status quo by establishing a new digital media value chain that will enable the delivery of content from multiple creators, on multiple devices, through multiple carriers.
Drawing from Deloitte's direct experience working with more than 1,000 leading clients in these industries and extensive primary research, the initiative is designed to clarify the increasingly complex digital media landscape.
"We believe that the form and quantity of consumer demand for digital media is predictable," said David Rips, lead architect of the Deloitte Digital Media Framework and director in Deloitte Consulting LLP's Media and Entertainment practice. "However, the technical scale and complexity required to deliver this demand far outstrips the capabilities and capacity of today's digital media companies and infrastructure."
In order to support the roll-out of the Deloitte Digital Media Framework, Deloitte has trained and deployed a team of 60 principals and directors from across its Technology, Media and Telecommunications industry consulting group, with dedicated professionals acting as a nerve center to support the team. In addition, Deloitte has developed a proprietary set of tools to map a company's optimal role in the digital media chain and develop a road map forward. These tools include dedicated business models, technology reference architectures, organizational structures and investment approaches for each of the new roles defined by the Deloitte Digital Media Framework.
"The Deloitte Digital Media Framework initiative will help our clients navigate an increasingly complex digital media landscape," said Schaffer Hilton, national managing director, Technology, Media and Telecommunications, Deloitte Consulting. "The premise of our solution is simple, yet critical: each company must declare its unique role in the digital media value chain in order to maximize returns and meet rapidly increasing consumer demands."
The framework addresses the need for three distinct roles - content creator, media distributor and consumer retailer. Today, the critical distribution layer, which Deloitte is calling the digital distribution clearinghouse, does not exist. In addition, current digital media retailers do not yet possess all the capabilities needed to fully meet consumer demands. As a result, content creators often feel compelled to distribute and/or retail their own content. This is a costly and highly complex endeavor, with diminishing returns as consumers increase their expectations for access to their entertainment whenever, wherever and however they want it.
The Deloitte Digital Media Framework is not only a call to action for media companies currently facing a stalemate with no clear way of monetizing content; it also represents a significant revenue opportunity for the technology and telecommunications industries. In addition to working with media and entertainment leaders -- including key players in the music, film and post-production industries -- Deloitte is helping to define new businesses and roles, working with major technology and telecommunications providers to align with the new value chain, select strategic partners and establish needed alliances.
"The technology infrastructure needed to meet increasingly sophisticated media demands will dwarf anything we've seen before," said Phil Asmundson, Deloitte LLP vice chairman and national managing partner of Technology, Media and Telecommunications. "This represents significant opportunities for collaboration between media companies, telecommunications carriers and technology providers. In fact, we've already vetted our approach with senior executives across these industries and their reactions have been extremely positive. Consumers and shareholders alike stand to gain exponentially when the digital content ecosystem is properly aligned."