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Executive Insights

Volume XIX, Issue 12 | February 9, 2017 | By: Alex Evans, Gil Moran Time spent consuming various forms of media content (2015) Preference for favorite eSport vs. favorite traditional sport

L.E.K. Consulting recently conducted a survey among different age groups that looks at the various forces reshaping sports fandom in the U.S. In the first of a two-part Executive Insights series, we examine how engagement, preferences and trends across traditional and alternative segments (e.g., eSports), as well as emerging platforms (e.g., over-the-top broadband Internet television (OTT)), are poised to redraw the map for teams, leagues, broadcasters and marketers/retailers.

Volume XVIII, Issue 37 | October 13, 2016 | By: Ray Fujii Smartphone penetration in Japan, 2011-2016 Benchmarking snapshot of key news media statistics Revenue for mobile gaming apps by operating system Paid apps downloaded per smartphone user, by country, 2013

Smartphone penetration in Japan has taken off, rising from just 15% of the population in 2011 to more than 75% today. The surge in handheld devices has paved the way for an explosion in mobile application development. This Executive Insights analyzes key factors behind the growth in smartphones and mobile apps, and identifies four critical success factors for market entrants to consider.

Volume XVIII, Issue 30 | August 9, 2016 | By: Peter Smith L.E.K.'s Seven Step Dynamic Performance Management Process Metrics that Reflect How the Business Really Works Economic Framework to Model Future Cash Flows Critical KPI Identification KPI Prioritization Matrix Data Capture Process and New Supporting Technologies

There are only a few KPIs which have a large influence on profitability – but defining and understanding how they interact with each other can be difficult. L.E.K. has developed a Dynamic Performance Management tool which can help businesses to address this problem and improve profitability by more than 30%.

Volume XVIII, Issue 24 | July 7, 2016 | By: Alex Evans Financial Impact of New Models for Accessing Digital Media Pay TV Business Model Implied Household Penetration: All Subscribers

In this Executive Insights, we’ll look into a number of factors that could determine whether established pay TV providers will be able to keep pace, particularly as younger viewers continue to tune out and a new wave of emerging digital platforms takes on the market.

Perennial Millennials 2 | January 25, 2016 | By: Maria Palm, Martin Pilkington Perennial Millennials: Pay TV Under Threat? Average Weekly Video Consumption Household Penetration of Subscription OTT Video Services Millenials’ Top Reason for Subscribing to OTT Services Uptake of Different OTT Providers Affinity with New and Traditional TV / Video Brands Effect of Subscription OTT on Traditional TV Viewing (Pay TV and Freeview) in Last 12 months Uptake of Subscription OTT Amongst Pay TV Subscribers & Percent of Pay TV Subscribers with OTT That Plan to Reduce or Cancel Pay TV in the Future Interest in proposed OTT slim bundle & Likelihood of canceling existing Pay TV Interest in proposed proposition & Likelihood of cancelling existing Pay TV

In the second installment of L.E.K.'s "The Perennial Millennial" Executive Insights spotlight series, we explore the uptake and future interest in Over-The-Top (OTT) services among Millennials by life stage and the potential impact on traditional Pay TV providers.

Perennial Millennials 1 | January 13, 2016 | By: Maria Palm, Martin Pilkington Life Stage Analysis of Millennials’ Media Consumption Habits Raises Major Challenges in Media Industry Average Weekly Media Consumption by Type - Millennials vs. Non-millennials Average Weekly Media Consumption by Type - Millennials by life stage Average Weekly Video Consumption by Type - Millennials by life stage Average Weekly Audio Consumption by Type & “Information” Consumption by Type Top Three Media You Would Take With You to a “Desert Island” Net Change in Media Consumption by Type Over Last Year Household Penetration of Subscription OTT Video Services Millennial Media Behavior is Viral and is Spreading Across Generations: Internet Usage at Home, Frequent Users of Facebook, Uptake of Subscription OTT Traditional Media Participants Need to Adapt Rapidly Research Methodology

L.E.K. recently conducted the first in-depth analysis of U.K. Millennials’ media consumption habits by life stage, from living at home with parents all the way through to starting their own families. The research, which covers six life stages, shatters the common assumption that, once millennials are older and have their own children, they revert to more traditional media consumption patterns.

Spotlight 4 | September 24, 2015 | By: Dan Schechter Future of Advertising Spend: How Has It Evolved, and How Will It Continue to Evolve? Total US advertising spend (2000-2022F) Total US advertising spend by media type (2000-2022F) Total UK advertising spend by media type (2008-2019F) Global advertising spend forecasts (2008-2019F) US ad spend growth vs. real GDP growth (1970-2014) Historical growth of total ad spend vs. real GDP growth (1970-2014) US recession real GDP decline and real ad spend change Large Agency Consolidation Has Slowed Since the Recession Acquisitions by agency holding companies (2005-2014) Our Outlook: Advertising Spend Will Continue to Be Attractive

In this latest Executive Insights Spotlight on Media & Entertainment series, L.E.K. uncovers the latest in digital advertising spend and the future of industry consolidation.

Volume XVII, Issue 22 | July 9, 2015 | By: Eric Navales, Robert Haslehurst Marketing Traditional Products vs. Marketing IoT Devices

In this Executive Insights, L.E.K. examines the factors that will drive successful commercialization of Internet of Things (IoT) from manufacturers of connected devices including industrial equipment, smart home and consumer electronics companies, to those who enable the connectivity of such devices and those who market and distribute the devices. Those companies that choose a smart and thoughtful approach to bringing their devices to market will have the best shot at thriving in the world of IoT.

Spotlight 3 | June 16, 2015 | By: Dan Schechter Virtual Reality: What does VR Look Like Today, and What Will Lead to Its Adoption? There Are Actually Three Virtual Realities: Many Think Only Traditional Super VR, But There Are Three Types Beam Me to The Holodeck With Super VR: Advanced Technologies for the VR-Purist Fan Boy Excitement: Super VR Content is Hardcore Immersive Entertainment To Discerning Fan Boys Easy Does It: Medium VR Headsets Prove the Power of Simplicity and Lower Cost Holodeck on the Cheap: Quick-to-Market Medium VR Headsets use Smartphones For Cheaper Modern VR Hold on Tight: Medium VR Content Offers Viewers Exciting New Experiences The New Reality is Casual Mobile VR: A Cheap Alternative Approach to VR That Billions Can View Today Placing Fans Closer to their Favorite Stars: Casual Mobile VR is Real Today for Interactive Music Videos Four Key Drivers of Virtual Reality Adoption If You Build It, They Will Come: Gaming as a Strategy to Incite Consumer Demand for VR Headsets Grand Slam: Sports as a Unique Opportunity to Leverage VR Entering the Twilight Zone: Viewers Step Into Films with VR Movie Trailers Not Your Average Sunday Morning Cartoon: Virtual Reality Enables Immersive Animated Viewing Our Outlook: Virtual Reality is Becoming a Reality

As new technologies are developed and price points drop, virtual reality (VR) is poised to take off for some applications. In this Executive Insights’ "Spotlight on Media and Entertainment" series, L.E.K. takes a look at the three different types of VR including Super VR, Medium VR, and Casual Mobile VR.

Spotlight 2, Part 3 | June 12, 2015 | By: Dan Schechter OTT TV Myth #8: OTT TV Is a Mature Market Phenomenon Users of Major Chinese Online Video Providers OTT TV Myth #9: TV Organizations Are Digital Ready Risky Business: The OTT TV Territory Is Treacherous The OTT TV Hunger Games: Big Opportunity Poses New Challenges for TV Organizations Fantastic Four: Here Are the Required Criteria for Successful OTT Launches The Craft: Pricing an OTT TV Service Correctly Requires Research and Flexibility The OTT Engine That Could: Successful OTT TV Services Deliver a Great User Experience What To Expect When You’re OTT-ing: Getting Consumers and Investors on Board with Your OTT TV Service Hawaii Five-No-Nos: Pitfalls to Avoid When Launching an OTT TV Service Maps To The Stars: TV Organizations Can Chart a Path to Digital Readiness Our Outlook: Digital Ready Is the New Black

In the third and final installment of our Executive Insights’ "Spotlight on Media & Entertainment" series on Over-the-top (OTT) TV trends, we dispel the last of nine myths on OTT, and introduce four criteria for those in the OTT TV-ready mindset. Find out if your organization is ready to take on OTT TV.

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