Content Connectors How the Coming Digital Content Revolution Will Change Everything

The 20,000 Foot View

Content Connectors, devices such as Apple TV, Google’s Chromecast, Amazon Kindle Fire TV and Roku, are set to transform the way in which mainstream consumers interact with digital content.  Current adopters of these devices are the most valuable paid content consumers across all content genres, not just the video for which Content Connectors are best known. These devices have already gained solid market traction but their combined potential is far greater.  If this potential is realized Content Connectors will transform the relationship consumers have with content, driving paid content towards the mass market but also threatening to break down the dividing walls between multiple media industries.  

Key Findings

• Home content            is stuck in silos between            and tablets and the TV.            Connectors break down these silo           
           of consumers have a Content Connector, with the US leading with             Approximately            million of the devices have been sold globally
• Content Connectors            TV broadcasters by getting online            onto the TV and TV            by turning dumb TVs into            TVs
• Content Connector            are highly valuable consumers and            more than twice as likely            overall consumers to pay for            forms of digital content
• Content Connectors            drive a decline in overall            consumption time by reducing media           
• They may            provide the opportunity for music            finally establish a beachhead on            TV, though with YouTube the            likely winner
           of Content Connector Consumers are female, indicating that this is a technology category with true mainstream appeal
• Amazon, Apple            Google have highly diverse ambitions            are suitably different that the            is likely to be able            support all three
• Content Connectors            an iPad moment for the            room and may transform the            of paid content across all            genres

Companies mentioned in this report: Amazon, Apple, Google, Roku, Netflix, Hulu, Amazon Prime, Facebook, Twitter, YouTube, Samsung, Sony