One third of the world’s population is now connected to the internet, a surprising statistic considering where we started not too long ago. As more people become connected, consumer consumption patterns around the globe are changing. The mediums people use to consume content are changing as well, caused by cultural differences as well as different regulations across countries. Many regions, such as Scandinavia and India, are a much different market than the United States. We will explore these differences by analyzing how they affect consumption patterns and their impact on business in a global context.
The primary source of growth in the global media and communication industry has been due to globalization. More specifically, BRIC countries are driving the growth of the industry. Over the next few years, BRIC countries consumption is estimated to grow by 14%. Multiple factors come in to play when trying to understand this fast growth. Cyber cafes and mobile phones are the gateways to this rise. In emerging economies, much of the population has trouble paying for an internet connection. To adapt, they use cyber cafes or mobile devices to consume content.
There is still substantial room for growth in the emerging markets sector, according to a recent report by Deloitte. The trend is due to the worlds rising middle class which now has more disposable income to spend on services such as internet and cable subscriptions. These new consumers behave differently though. Consumers from China and Russia are 26% more likely to consume videos online compared to the average consumer. A new phenomenon has happened because of the rise of digital mobile consumption and it is called second screen consumption. Tablets and phones are exploding with growth and using them while watching television has also increased. This is a problem for advertisers who want to target these new consumers because they now need to provide interactive digital content. This is an area that will continue to evolve because nobody has figured out the right way to execute it yet.
While there is no “average” consumer for multimedia consumption, most experts in the field agree that companies competing in this industry will need to target emerging economies, coupled with digital media that is interactive. Once again, globalization is disrupting the once “normal” model for consuming media.