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1YOUJUSTGETMELETGOOFTHEWHEELMAKEITPRACTICALNOWWHATInsightsfromthe2018AccentureDigitalConsumerSurveyof21,000onlineconsumersin19countriesrevealfourkeyfindings:Stand-alonedigitalvoiceassistantdevicesareleadingtheevolutiontowardblendeddigitalandphysicalexperiencesConsumersareinsearchofsimplified,flexibleandengagingsubscriptionover-the-top(OTT)videoexperiencesInterestinconnectedexperiencesextendstoself-drivingvehiclesConsumerswantmorethanjustfunfromaugmentedandvirtualreality1243Theblendingofthedigitalandphysicalworldsisevolvingfromawiderangeofparallelservicestoatrulyseamlessexperience.
Thedigitalvoiceassistant(DVA)deviceinitsstand-aloneformfactorisleadingthewayinthisdevelopment,asitmakesservicesmoreeasilyaccessible.
ThekeyquestionfortheindustryishowwellwillcompaniesbeabletodevelopandoffertheseblendedexperiencestotheircustomersSHOWMEMORE2YOUJUSTGETMELETGOOFTHEWHEELMAKEITPRACTICALNOWWHATSHOWMEMOREYear-on-yeargrowthinownershipofstand-alonedigitalvoiceassistant(DVA)devicesisgreaterthan50%inallcountriessurveyed,regardlessoftheavailabilityoflocallanguageservices.
Ifstatedpurchaseplanshold,DVAdeviceownershipwillreachonethirdoftheonlinepopulationinChina,India,theUS,BrazilandMexicobytheendof2018(FIGURE1).
Whilenotyetaswidespread,stand-aloneDVAdevicesareusedmoreoftenanddeliverhighersatisfactionlevelsthandeviceswithembeddedDVAs(FIGURE2).
FIGURE2Whilenotyetaswidespreadasembeddedvoiceassistantdevices,stand-aloneDVAdevicesareusedmoreoftenandusersaremoresatisfiedFREQUENCYOFDAILYANDWEEKLYUSAGESATISFACTIONLEVELSAMPLEBASE:Stand-aloneDVAdeviceusers(n=3,639)|EmbeddedDVAdeviceowners/users(n=6,689)STAND-ALONESTAND-ALONEEMBEDDEDEMBEDDED75%94%69%91%FIGURE1Projectedownershiplevelsofstand-aloneDVAdevicesbytheendof2018SAMPLEBASE:Allrespondents(n=1,000ineachcountry,2,000intheUSandChina)20172018Plannedownershipendof2018INDIAUSMEXICOCHINABRAZIL8%14%39%6%13%34%7%21%37%4%14%33%9%15%34%3YOUJUSTGETMELETGOOFTHEWHEELMAKEITPRACTICALNOWWHATSHOWMEMOREThevoiceinterfacetakestheblendingofthephysicalanddigitalworldstoanewlevel,augmentingthewayconsumersaccesscontentandservicesandofferingprovidersanadditionalserviceandrevenueopportunity.
InfixedlocationsconsumerswhoownaDVAdeviceareusingtheirsmartphonelessforcertainactivities,butfor"onthego"usecasestheystillturntotheirmobiledevices(FIGURE3).
CountrieswherethehighestpercentageofconsumersagreetheyareusingDVAdeviceforactivitiespreviouslydoneonsmartphonesincludeIndia,theUS,andBrazil.
Deviceadoptionmaybetheeasypart;keepingconsumersengagedcouldbemorechallenging.
Thewinnerswillbetheoneswhocantailoranapptoprovideatrulyintegrateddigitalandphysicalexperience.
FIGURE366%ofconsumerswhoownastand-aloneDVAusetheirsmartphoneforfeweractivitiesSAMPLEBASE:Stand-aloneDVAownerswhousetheirsmartphoneforfeweractivities(n=1,493)SAMPLEBASE:Stand-aloneDVAdeviceowners/users(n=2,271)*SumafterroundingpercentagesQ:TowhatextentdoyouagreewiththefollowingstatementSinceIgotmydigitalvoiceassistantdevice,IusemysmartphoneforfeweractivitiesStronglyagreeAgree30%35%66%*consumerswhoownastand-aloneDVAusetheirsmartphoneless4YOUJUSTGETMELETGOOFTHEWHEELMAKEITPRACTICALNOWWHATSHOWMEMOREAlthoughcommerciallyavailableself-drivingvehiclesarenotexpectedtobemarket-readyinthenearterm,surveyfindingsindicatethatconsumersarereadytoembracetheconcept.
Morethanhalfofonlineconsumers–especiallymenunder55yearsofagewithhigherincomes–arewillingtobeapassengerinaself-drivingvehicle,despitesomeconcernsoversafety(FIGURE4).
One-thirdcitetechbrandsastheirpreferredsupplierforself-drivingvehicleswithpreferencestrongestinemergingmarketslikeIndia,BrazilandMexico.
Consumerinterestdeclinesasadvanceddriverassistancesystem(ADAS)featuresbecomemoreautonomous,indicatingmanymaybemorecomfortabletakingincrementalstepstowardrelinquishingdrivercontrol.
Nonetheless,53percentreportinterestinfullyautonomousvehiclesnow.
Thelargeacceptanceofthisseeminglyhigh-risktechnologyblendedintoaphysicalworldexperienceindicatesconsumerswillintegratesomelevelofriskintotheirlivestoachieveanexperiencetheydeemvaluable.
Multi-taskingisseenasakeyadvantageofautonomousvehiclesandtheamountoftimethatisfreedwhenconsumersdon'tneedtodriveismassive.
Importantquestionswillbehowthattimewillbeusedandwhatcompanieswillbestleveragethemonetizationpotentialofthiscaptiveaudience.
FIGURE454%ofonlineconsumersarewillingtobeapassengerinaself-drivingvehicleAGEGROUPINCOMELEVEL47%54%62%Low(n=5,302)Medium(n=9,559)High(n=6,139)71%61%53%37%14-17(n=1,124)18-34(n=8,550)35-54(n=7,605)55+(n=3,721)5LETGOOFTHEWHEELMAKEITPRACTICALSHOWMEMORENOWWHATYOUJUSTGETMEThebroadconsumerbaseismoreinterestedinpractical,daily-lifeAugmentedandVirtualReality(AR/VR)applicationsthangaming(FIGURE5).
Whilethisgrouphasloweraveragepurchaseintent,itslargersizerepresentsahardwaresalesopportunityequaltothatofgamers.
AR/VRisevolvingintoarangeofdifferentusecasesanddeviceformfactorwillmostlikelyplayaroleintheiradoption.
ConsumersareinterestedinAR/VRtechnologyandservicesbutfewarecomfortablewearingintrusivedevices.
IntegratingARtechnologyintowearableandotherdailylifedevicesisonewaytoovercomethechallenge.
Infact,morethanhalfofconsumerslongforthedaywhentheycanreplacetheirsmartphonewithawearablesolutionthathasallsmartphonefunctionalitythroughvoice,augmentedrealityandholograminterfaces(FIGURE6).
NowisthetimetoconsiderblendingAR/VRintopracticallifeexperiences.
WhileAR/VRisdifferentiatingnow,itwillincreasinglybeembeddedacrossawiderangeofservices.
DefiningwaystofurtherdifferentiatetheexperienceasAR/VRbecomesmoreubiquitouswillbekeytocreatingservicemonetizationopportunities.
FIGURE5Consumersareinterestedinpractical,daily-lifeAR/VRapplicationsbeyondgamingFIGURE655%ofconsumerswouldliketoreplacetheirsmartphonewithawearablesolutionthathasallsmartphonefunctionalitythroughvoice,augmentedrealityandholograminterfacesSAMPLEBASE:Allrespondents(n=21,000)SAMPLEBASE:Allrespondents(n=21,000)StronglyagreeAgree20%35%55%CONSUMERSWANTMORETHANJUSTFUNFROMAUGMENTEDANDVIRTUALREALITY(AV/VR)6YOUJUSTGETMELETGOOFTHEWHEELMAKEITPRACTICALNOWWHATSHOWMEMOREWithmorethan200OTTserviceprovidersintheUSalone,itisnotsurprisingthatconsumersoftenneedtomanagemultipleOTTservicestogetallthecontenttheywant.
However,anoverwhelmingmajority(86%)aretiredofthisjugglingact(FIGURE7).
Theirsearchforasimplified,centralizedexperience,pointstothepotentialofaggregationservicesandmanagedaccessmodelsintheindustry.
Yet,thisdoesnotmeanconsumersarelookingforaccesstoallcontent—justtheirs.
Halfofrespondents(51%)believetheyarepayingforcontenttheydon'twant,anindicationthatthemarketisripeforflexiblebundlesthatcanbecustomizedtoconsumerpreferencesandnewbusinessmodelsthatcanunlockadditionalconsumerdemand(FIGURE8).
FIGURE786%ofonlineconsumerssaytheydon'twanttojugglemultipleOTTservicesFIGURE8Despiteshrinkingvideobundles,51%ofconsumersbelievetheypayforcontenttheydon'tcareaboutHavePayTV(cable/satellite)/Freeover-the-aironlyHavePayTV(cable/satellite)/andyourchoiceofinternetsubscriptionvideoon-demandservices(e.
g.
Netflix)Haveonlyasinglesubscriptionvideoon-demandportal,witheverythingyouwanttowatchinoneplaceManagemultiplesubscriptionvideoon-demandservicesyourself39%51%24%23%14%Only14%wanttomanagemultiplevideoon-demandservicesthemselvesSAMPLEBASE:Allrespondents(n=21,000)SAMPLEBASE:Allage18+respondents(n=19,867)IonlypayforthecontentthatIwanttowatchIpayforthecontentthatIwanttowatchandonlyverylittlecontentthatIdon'tcareaboutIpayforthecontentthatIwanttowatchandsomecontentthatIdon'tcareaboutImostlypayforcontentthatIdon'tcareabout49%19%20%12%HOWONLINECONSUMERSPREFERTOACCESSVIDEOCONTENT7YOUJUSTGETMELETGOOFTHEWHEELMAKEITPRACTICALNOWWHATSHOWMEMOREWhilemanyOTTservicesaregravitatingtowardssubscription-basedmodelstodriverevenue,researchrevealsthatthereisstillahealthyconsumerappetiteforadvertising.
Infact,64%ofrespondentsstatedthattheyarenotwillingtopaymoretoremoveadvertising(FIGURE9).
ThisgivesOTTservicestheopportunitytopursuediversifiedoptionsformonetizationandtoprovideconsumerswithmoreflexibleoptionstosatisfytheirpreferencesandpricepoint.
ThereisnoquestionthatconsumersareengagedinOTTand,baseduponmarkettrends,becomingmoreso.
Accordingtoourresearch,onlinevideoconsumptionaccountsfor42%ofconsumers'viewingtime—butcomprisesonly23%ofconsumers'viewingwallet(FIGURE10).
AlthoughOTTservicesarenotyetreapingtheirfairshareofmarketspend,thereisdefinitepotentialtogrowrevenuebyaligningthesevaluesandpositioningOTTasacompetitortotraditionalPayTVtoattractnewviewers.
FIGURE9OTTserviceshavegravitatedtosubscription-basedmodels,but64%ofconsumerssaytheyaren'twillingtopaytoremoveadvertisingFIGURE10Consumerbudgetsdonotyetreflecttheirshiftinconsumptiontoonlinevideo:theyspend23%oftheirentertainmentbudgetonOTTbut42%oftheirviewingtimePaytoRemoveWouldnotPaytoRemoveOTTPayTV36%64%SAMPLEBASE:Allage18+respondents(n=19,867)SAMPLEBASE:GlobalConsumerswhohavebothOTTandPayTVservices(excl.
OnlinePayTV)(n=3,129)SHAREOFWALLETANDSHAREOFTIMEFORPayTVANDOTTSUBSCRIBERSGLOBALLY23%OFWALLETONOTT,BUT42%OFVIEWINGTIME100%90%80%70%60%50%40%30%20%10%0%ShareofWalletShareofTime8YOUJUSTGETMELETGOOFTHEWHEELMAKEITPRACTICALNOWWHATSHOWMEMOREGivedigitalconsumersexactlywhatthey'relookingfor:1.
Focusonblendeddigitalandphysicalexperiences3.
Innovatewithnewbusinessmodels2.
Architectnewecosystemstoconnectconsumers4.
PutconsumersattheheartoftheOTTexperienceConsumersareembracingtheblendedexperiencesthatvoice-enablementprovides.
Soonconsumerinterestwillshiftfromnewformfactorstoconnected,liveintelligenceandsuccesswillpivotonhowwellcompaniescreateandsustainengagingblendedexperiences.
Integratingnaturallanguageprocessingwillbeakeyimperativeforthedeveloperecosystemsuchthatvideo,voiceandvariousotherinterfacesworkseamlesslytogetherathomeandonthego.
Behindblendedexperiencesarerapidlyevolvingecosystemsofhardware,software,connectivityandcontentproviders.
Asserviceaccessgrowsubiquitousandfocusheightensonintegrateddigitalandphysicalexperiences,newecosystemsareneededtodeliverengagingusecases.
Whetheritisapartnershipbetweenmobileandstationarydevices,datasharingacrossplatformsorcollaborationwithuniqueproviders,dynamicecosystemswillformthebasisfordifferentiation.
OTTvideoisheretostay.
Nowit'stimetoretoolthecurrentbusinessmodelstoputtheconsumeratthecenteroftheonlinevideoexperience.
Indoingso,videoserviceproviderscanunlockexpandedrevenueopportunitiesthroughbusinessmodelslike:newaggregationservices,flexiblebundles,tieredsubscriptionaccessmodelswithconsumer-orientedadvertisingapproachesandservicesthatpositionOTTprovidersascompetitorstotraditionalPayTV.
ThemergingofdigitalandphysicalexperiencesrepresentedbyDVAs,self-drivingvehiclesandAR/VRcreatesmonetizationopportunitiesthatcouldintroducecompletelynewbusinessesandbusinessmodels.
Howwillfreetimebespentinaself-drivingvehicleHowcanAR/VRandautonomoustechnologiesassistinhealthcareortrainingApersistentfocusoninnovationwillhelpcompaniesleadthewayintheblendedexperienceevolution.
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TheAccentureDigitalConsumerThoughtLeadershipprogramforcommunications,mediaandtechnologycompaniesisbasedonasurveywhichwasconductedonlinebetweenOctoberandNovember2017,with21,000consumersin19countries,includingAustralia,Brazil,Canada,China,France,Germany,India,Italy,Japan,Mexico,TheNetherlands,Poland,Singapore,SouthAfrica,Spain,Sweden,TheUnitedArabEmirates,TheUnitedKingdomandtheUnitedStates.
Thesampleineachcountryisrepresentativeoftheonlinepopulation,withrespondentsranginginagefrom14to55plus.
Thesurveyandrelateddatamodelingquantifiesconsumerperceptionsofdigitaldevices,contentandservices,purchasingpatterns,preferenceandtrustinserviceproviders,thefutureoftheirconnectedlifestyleandappetiteinnewtechnologiessuchasdigitalvoiceassistants,self-drivingvehicles,artificialintelligenceandvirtualreality.
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com/digitalconsumersAccentureisaleadingglobalprofessionalservicescompany,providingabroadrangeofservicesandsolutionsinstrategy,consulting,digital,technologyandoperations.
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ABOUTTHEACCENTUREDIGITALCONSUMERTHOUGHTLEADERSHIPPROGRAMABOUTACCENTUREDaveSovieSeniorManagingDirectorHigh-TechIndustrydavid.
a.
sovie@accenture.
comGregRobertsManagingDirectorHigh-TechIndustrygregory.
c.
roberts@accenture.
comRobinMurdochManagingDirectorSoftwareandPlatformsIndustryrobin.
murdoch@accenture.
comAgnetaBjrnsjSeniorPrincipalCommunications,MediaandTechnologyIndustryagneta.
bjornsjo@accenture.
comPaulJohnsonResearchManagerSoftwareandPlatformIndustrypaul.
d.
johnson@accenture.
comMarkFlynnResearchManagerMediaandEntertainmentIndustrymark.
flynn@accenture.
comLynnMcMahonManagingDirectorMediaandEntertainmentIndustrylynn.
h.
mcmahon@accenture.
comMargaretSchoelwerSeniorManagerCommunications,Media,andTechnologyIndustrymargaret.
s.
schoelwer@accenture.
comMélinaViglinoSurveyResearchSeniorPrincipalmelina.
viglino@accenture.
comKonradSucheckiResearchSpecialistkonrad.
suchecki@accenture.
comAUTHORSKEYCONTRIBUTORSFROMACCENTURERESEARCH