Internet Giants Investing in Content

This report examines the market of digital content (video, music, games, books, press) from the specific perspective of the internet giants.

The introductory section describes market trends in digital content revenues, consumption and the various stakeholders (specialists, incumbent media groups, internet giants).

The major internet players are then analysed in detail with regard to their positioning in content and associated business models. We profile players from the United States (Amazon, Apple, Google, Facebook) and from China (Alibaba, Tencent).

The report presents a strategic analysis of key players’ moves along the value chain (content production, services, aggregation, devices) and concludes with the content distribution objectives of internet giants and how they relate to their core business model.

1. Executive Summary
1.1. Key findings
1.2. IDATE’s view
1.2.1. All digital content holds interest, but the TV and video segment is the most attractive
1.2.2. The video game sector could be an entry point for Chinese players to enter Western markets
1.2.3. Building complete ecosystems: getting closer to a unified platform
1.2.4. Short-term profitability from content investment is not a priority for the internet leaders; this makes them even more threatening for the content industry

2. Market structure and trends
2.1. The market for digital entertainment content is growing
2.1.1. Video games is the fastest growing segment, but television is still the leading entertainment segment worldwide
2.1.2. Online consumption is driving this market growth
2.2. Competition between traditional media groups, specialists and internet giants
2.2.1. The internet giants top the rankings…
2.2.2. … and enjoy significant scale effects

3. The Internet giants in competition: profiles of the leaders
3.1. Amazon
3.2. Apple
3.3. Google
3.4. Facebook
3.5. Alibaba
3.6. Tencent

4. Strategies and business models
4.1. Video is the main growth area in digital content
4.2. A range of services integrating “all” content segments
4.2.1. TV and video
4.2.2. Video games and music
4.2.3. Press and books
4.3. A “meta-aggregator” policy
4.4. Devices provide differentiated choices
4.5. Business models: the rise of subscription
4.6. Digital content serves a larger purpose for the internet leaders

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