1

|

TH

E

FU

TU

RE

O

F

CU

ST

OM

ER

D

AT

A

E ntertainment companies are leaving money on the table. A lot of money.

Film studios, television networks, video game

companies and an ever-increasing number of new industry players compete constantly for people’s attention. While it’s common for the same parent company to have units in several of those fields, too many companies fail to coordinate those units and extract the most value from their customers.

Put another way: An entertainment company that has, say, film, television and gaming units has three distinct sets of customers and understands each differently. Larger publishers can extend that even further, with merchandise tie-ins combining online and offline sales and, quite possibly, incorporating the “internet of things” (depending on the item sold). Beyond that, there’s also the rise of community engagement and activities like eSports to consider.

The end result is entertainment companies have more sources and opportunities for fan enjoyment than ever before. And if companies use those to create 360-degree profiles of fans, (a complete view of customers built by aggregating data from the various types of media they consume), they can begin to understand them at scale, resulting in better targeted marketing efforts and the cross-sale of additional IPs that are likely to be of interest.

There’s already a race among studios, publishers and others to get that better understanding of their customers’ habits and preferences. To get to the finish line, though, they must complete three steps with their data: acquisition, unification and insight.

Data acquisition. Companies must

set up their data-capturing systems to know what their customers are doing in real time. This is an area where digital-first companies have an advantage, but not an insurmountable one. Technologies are evolving fast in this space, so all sectors will explore new territory in the months and years to come.

Data unification. Companies with branching divisions need to share each branch’s data internally, and merge it so each individual fan’s data includes information from all branches. Acquiring and incorporating data on that user from an even wider variety of sources and platforms can help entertainment companies build new business models, optimize their marketing efforts and make the most of purchasing opportunities, both in the real and virtual worlds.

Data insight. Figuring out what to do with that data and putting it to work. This step answers the question “How can all of this disparate information best serve the company’s business goals and bottom line?”

Data, Data Everywhere, But…Data mining opportunities come in a variety of forms in the entertainment world. In 2016, the six major studios — Warner Bros., Disney, Fox, Paramount, Sony and Universal — released 93 films. Other studios put out another 43 features. (Collectively, the year’s domestic box office receipts topped $11 billion.) That’s a lot of potential data to gather, from ticket sales (which can be broken down in many ways), to most popular showtimes, to the types of films that do best in certain areas, to whether customers are willing to pay a premium for tickets in certain circumstances.

Things were even busier in the electronic entertainment industry. Game developers and publishers put out more than 700 titles last year collectively, resulting in a total consumer spend on video games in the United States of $30.6 billion. Data mining is notably easier in the video game industry, since many titles are played online. That lets publishers track how players progress through levels, see how far they get in games before moving on to something else, and where they’re playing from geographically.

There’s plenty of growth in other areas, too. Netflix, earlier this year, boosted its subscriber base above

The Data Explosion: Tracking Customers

Across Movies, Games, eSports,

Streaming and More Entertainment giants can put

information to work, build

detailed pictures of individual

customers and even anticipate

their behavior — if they can seize the opportunity

2

|

T

HE

F

UT

UR

E

OF

C

US

TO

ME

R

DA

TA

the 100 million user mark. Cable TV services are losing subscribers, but still boasted an impressive count of 99.2 million customers last year. And adjunct services like eSports, augmented reality, virtual reality, the internet of things, dedicated subscription services (like CBS All Access) and community engagement are all rapidly gaining audiences of their own.

All of these entertainment portals are tremendous sources of data. The problem is: The sheer quantity of that data is already overwhelming and it’s increasing exponentially. In fact, 90 percent of all of the world’s collective data (both inside and outside of the entertainment industry) was created in the last two years — with an additional 2.5 quintillion bytes generated each day.

Gathering, and interpreting that much data, even in just one of the entertainment world silos, is hard. Bringing it together to build a 360-degree profile is even harder. And the sources of data continue to multiply.

The Rapidly Evolving EcosphereThere are solid opportunities for entertainment companies to gather additional data to build customer profiles, though, and those opportunities will only increase as traditional media and new media meet and integrate with each other. To better grasp the potential of those opportunities, it helps to look at the fast-changing state of technology in some of the top and quickly growing entertainment industries.

Any form of entertainment can collect data that would help shape a more well-rounded view of its consumers. Even in traditional live sports, for example, some season ticket holders can be tracked from ticket sales to concession stands. And the entertainment marketplace is shifting rapidly as new technologies — many of them data-friendly — alter what content people are watching and how they watch it.

Television: While today’s cable and satellite subscription numbers are still formidable, despite cord-cutting, the home video market is somewhat fractured. There are more and more alternatives for cord cutters or “Over the Top” consumers, people who don’t want to pay for channels they don’t watch, as services like Plex let them watch and record live TV without a subscription. Networks are accelerating efforts to

launch their own stand-alone options, such as HBO Now, which give people full access to the network’s programming and live premieres on a variety of platforms without a pay-TV subscription. CBS All Access not only acts as a home for the network’s programs, but also offers exclusive shows like “Star Trek: Discovery.” Cable companies, meanwhile, are exploring different bundle options, which would strip lesser-watched channels and lower the price of customers’ bills. Most of these services require an online connection, meaning the companies offering them can gather a treasure trove of data about customer viewing habits.

Movies: The availability of on-demand programming for viewing on 4K TV screens has had a noticeable impact on the box office. Summer 2017 saw the lowest number of movie tickets sold in a quarter century. To change that, distributors and exhibitors are looking at several options. To boost attendance, some chains are partnering with services like MoviePass, which lets film fanatics pay a monthly $10 fee to see as many movies in theaters as they want. Regal Cinemas, the nation’s second largest chain, is about to begin testing a dynamic pricing model, which would charge lower admission prices for less popular films. And they’re working with major pay-per-view companies to act as communal hubs for major live events like 2017’s Floyd Mayweather/Conor McGregor fight. Again, the data gathered by these companies, which (just in the examples above) can range from which films audiences do or don’t deem worthy of a premium to whether people are willing to spend more at the concession stand when they pay less to walk in the door.

Streaming: As streaming services including Netflix, Hulu and Amazon jockey to lock in audiences, they’re investing heavily in original content. Netflix, in October, took on another $1.6 billion in debt (after previous offerings totaling nearly $2 billion) to ensure it could buy or produce the shows it wants to in 2018. (Netflix plans to release 80 films next year — a 60 percent increase over 2017.) Amazon has struck a deal to live-stream 10 Thursday night NFL games. This year Hulu became the first streaming service to win the Emmy for outstanding drama with “The Handmaid’s Tale.” These services are already gathering and interpreting customer data so they can produce and promote new

DATA IN 2020There will be 5.2 TB of data

for every person on the planet

That is equal to each person downloading 80 copies of

Grand Theft Auto V

3

|

T

HE

F

UT

UR

E

OF

C

US

TO

ME

R

DA

TA

2016201520142013201220112010 2017 2020201920180

10

20

30

40B

40 billionTBs

DATA GATHERING PROJECTIONSThe digital universe will double about every two years.

IDC

“

shows directly to customers who have already shown an interest in that sort of programming.

Gaming: The days when video games were merely short-term diversions for players are long gone. Today, the industry is adroit at coaxing additional revenue from customers with micro-transactions, “season passes” (that give fans access to add-on content) and randomized in-game rewards that can be purchased (and, often, make it easier to beat your opponents — a powerful lure for gamers). Many mobile games also incorporate advertising, showcasing banner or video ads between levels or replays. Not only can game companies use this to tweak the play experience and increase the amount of time people spend with their games (making them more likely to make in-game purchases), they can also use that data to move players over to new titles and play experiences, significantly reducing marketing costs.

eSports: Watching other people play video games may seem an unlikely form of entertainment, but its audience is one of the fastest-growing around. ESports is poised to be a $1.5 billion industry by 2020, according to market research firm NewZoo and it commands a massive audience. The audience for the 2015 League of Legends world finals topped that of the 2015-16 NBA Finals by 5 million. To capitalize on that popularity, several major networks, including ESPN, NBC and TBS, regularly air eSports programming. In recent months, tournaments have even popped up on The Disney Channel. And Nickelodeon, in June, was part of an investment group that invested $15 million into an eSports league.

At the same time, cash prizes for players are reaching eye-popping levels. The International (a tournament for the game Dota 2) has given out more than $55 million in prize money since its launch in 2011. And League of Legends has awarded more than $36 million, says Ben Schachter, an analyst with Macquarie Capital.

Networks are still learning how to capitalize on eSports as viewership numbers soar. Last year, viewers on Twitch, the biggest streaming service, spent 292 billion minutes watching programming online. That’s a dedicated audience — and one whose comings, goings, clicks and purchases are carefully tracked.

The market is also still expanding.

Some 42 schools, including Miami (Ohio) and Georgia State, are in the National Association of Competitive eSports (NACE), and the NCAA is considering whether to officially oversee the sport. (Some higher education establishments, such as Chicago’s Robert Morris University, also offer players scholarships covering 70 percent of their annual tuition costs.) The rise of collegiate eSports enables companies to get even more complete data on fans.

VR/AR: Virtual reality hasn’t taken off as fast as some experts were expecting it might, but it’s still early days for the latest VR technology — and Facebook-owned Oculus, a major stakeholder in VR, recently announced a significantly cheaper, lighter headset, the $199 Oculus Go, to try to boost sales. Other companies, like Microsoft and Apple, are placing their bets largely on augmented reality, which overlays virtual images onto the real world (such as Pokemon appearing to be sitting on your desk in a game of Pokemon Go). Together, the VR/AR markets are expected to reach $120 billion by 2025. From a data gathering perspective, both of these technologies are especially interesting, as they not only show the typical data of player or viewer habits, but they pinpoint to the pixel where a player is focused.

These are hardly the only entertainment technologies evolving rapidly. Viewers are quickly making home video a multiscreen experience — and services like Twitch, which initially focused exclusively on airing livestreams of people playing video games, now regularly re-airs classic TV shows and

LAST YEAR, VIEWERS ON TWITCH, THE BIGGEST STREAMING SERVICE, SPENT 292 BILLION MINUTES WATCHING PROGRAMMING ONLINE. THAT’S A DEDICATED AUDIENCE — AND ONE WHOSE COMINGS, GOINGS, CLICKS AND PURCHASES ARE CAREFULLY TRACKED.

4

|

T

HE

F

UT

UR

E

OF

C

US

TO

ME

R

DA

TA

films. The common thread among all of

these industries and advancements is the growing opportunities to acquire more information about reaching customers and increasing the bottom line. All of this can help entertainment companies build that 360-degree profiles.

Data-driven Opportunities Once a company has collected data about its customers, there’s still the matter of what to do with it. Right now, many entertainment companies have taken the first step, and are thoroughly mining customer information, but are still struggling to learn how to use it, since they lack the on-staff expertise to sift through the volumes of data and discern meaning from it.

When it comes to digesting and applying data, the video game industry seems to be in the lead. Since 2012, video game publisher Electronic Arts has been determined to gather and find the best ways to use customer information. Data is acquired, filtered, analyzed, then shared with the developers responsible for maintaining (and updating) current games as well as those working on future versions of those franchises. Riot Games has 12 data scientists on staff, who pore over League of Legends information to help improve the game. That has helped keep it popular.

Big data in games is currently being used in a variety of ways, starting with gameplay itself. As developers and data analysts examine how players interact with a title, they’re able to make subtle tweaks to improve the player’s experience, which can increase the time players spend in the game and, in some instances, help boost the number of in-game purchases they make. That gives publishers a revenue bump.

Data-driven tweaks are especially impactful in in-mobile and free-to-play games. Because players of those titles are used to regular, small patches and updates, it’s easier for developers to make changes — and to make them quickly, especially when it comes to pricing. Players in one area of the world, or using a particular operating system, might be willing to spend more for in-game purchases, while others are reluctant to do so. By cutting pricing for areas or demographics that spend less, the company can convince them to open their wallets.

Similarly, players of different genres

have different spending habits. Players of racing games have shown a broader willingness to pay for items than those who opt for strategy games, but they do so only at a lesser amount.

There are impacts beyond gameplay as well, such as customer service improvements and better accuracy in cross-sell and up-sell by suggesting additional titles to players.

Engaging the Fan BaseUsing data to build this full customer profile doesn’t negate the need to be authentic to the IP though, notes Kenny Johnston, head of communications for Pocket Gems, makers of the “Episode” mobile storytelling series. While data can show developers how players like to play and what they enjoy, companies don’t want to extend a licensed property in a direction that doesn’t make sense for the brand.

Pocket Gems has worked extensively with celebrities (including Demi Lovato) and studios (for TV shows and films including “Pretty Little Liars” and “Mean Girls”) to create interactive stories where the narratives are dictated by the players’ choices. The company works closely with stakeholders of those properties, or with the celebrities themselves, to ensure they stay on-brand.

Some IP or celebrity-centered apps, he says, “are just marketing things” on which the studio isn’t really aiming to turn a profit, or old games re-skinned with a celebrity face on them. Johnston favors a different approach. Rather than release a companion app for a show or film release, he says, “We try to make it a more organic experience in its own right.” That frees the game from needing to a day-and-date release with the underlying show.

Keeping the differences of various media in mind is also important. Writing an episode of “Pretty Little Liars” for TV, where viewers watched hour-long episodes, is quite different from creating a story for a mobile app, where users normally spend just a few minutes at a time.

“We think of ‘Episode’ as being more like Netflix than a game,” says Johnston. “There’s tens of thousands of stories there. If [users] enjoy the interactive story experience that’s based on a film, they can then find others.”

The business model is working, because it’s data-driven and the company works to optimize new content

IDC

of data will containvalue if analyzed

33%

IDC

of data will requiresecure protection

40%

IDC

DATA TYPESBy 2020, almost half the data stored on the cloud will be entertainment.

47%35%

Entertainment Surveillance

10%Electronics8%

Other

5

|

T

HE

F

UT

UR

E

OF

C

US

TO

ME

R

DA

TA

and new releases based on that audience data. Pocket Gems recently raised $90 million in funding from Chinese internet and gaming giant Tencent and its games have been downloaded more than 300 million times. “Episode” fans have viewed over 3 billion stories to date.

Challenges and SilosVideo game data has largely been siloed, and that’s unfortunate, since in the larger entertainment world, video games are just part of the overall equation. Top game titles spawn motion pictures or television series or Webisodes and, conversely, major movies or shows have video game tie-ins. Popular games often have toys, action figures and other merchandising opportunities, which creates off-line data silos in the form of in-store purchases that should be considered in the overall picture. ESports tie-ins are increasing among gaming companies and data warehouses like Amazon, which owns Twitch. And entertainment companies sometimes even cross into “real” sports. Nintendo, for example, still holds an ownership stake in the Seattle Mariners (though not the majority stake it held until last fall).

Even companies that depend on each other have thus far been reticent about sharing their information with their partners. Consider the film industry: Theater chains can offer data on customer traffic trends. Fandango knows, from online ticket purchases and visitor traffic patterns, the kinds of movies its customers are most interested in and the company can gauge pre-release interest; Rotten Tomatoes could potentially measure expectation against experience; studios have strong consumer reach via their marketing and social media channels. Blending that intelligence could give all parties an improved way to communicate with customers and increase their profit margins.

Other valuable data silos include Nielsen ratings; the voluminous proprietary information held by streaming services; and even Internet of Things devices at live events and venues like Disney’s Magic Bands.

Gathering the information is just one part of the process, though. Data that’s limited to a silo, extensive and thorough though it may be, isn’t as useful as data that’s unified and integrated with other sources.

Unifying that data is challenging

enough. Once data’s been acquired and unified, security becomes a major concern. Entertainment companies have been favorite targets of hackers for the past six years. Consumer data this detailed is a tempting lure for digital thieves and identity theft brokers on the dark web.

The unification of user data could have significant financial benefits for entertainment studios, though. Not only does unified customer data open the door to increased sales, but it also can enable targeted marketing to be done at a significantly lower cost.

Consider mobile games. In the holiday season, says Nicolas Nadeau, owner of Exostatic, customer acquisition costs (cost per engagement, or CPE) for a mobile game can be as high as $4 per player. Costs vary notably for other forms of entertainment, sometimes by genre, but they’re never cheap. That makes cross-promotion critical.

But there is one part of a 360-degree user profile that might run contrary to the ideas of the people in the accounting department.

The McDonald’s Theory Nadeau notes the entertainment industry could stand to learn a few lessons from the fast food industry. It’s an idea called ‘The McDonald’s Theory’ and it’s based on the importance of loss leaders.

“People usually go to McDonald’s to get a combo: a burger, soft drink and fries,” he says. “Anybody in business knows that the money is made on the fries and the drink, not the burger. But the burger is why people go.”

For the entertainment industry, the metaphor is clear: Use select content to move customers into other, more profitable content types. That’s something a few successful app makers have been particularly adroit at doing.

“In the mobile industry, everyone wants to be a unicorn winner, but very few think strategically enough to make apps that attract people, not monetize [by pushing people towards in-app purchases],” he says. “I call those ‘burger apps’ because they get users in. From there, we can move them to other applications that are designed to monetize. It’s virtually free to move people across platforms.” Entertainment companies, he says, need to start thinking on a broader scale. “Your goal is to acquire users.”

That “burger” can be one of many

“WE THINK OF ‘EPISODE’ AS BEING MORE LIKE NETFLIX THAN A GAME. THERE’S TENS OF THOUSANDS OF STORIES THERE. IF [USERS] ENJOY THE INTERACTIVE STORY EXPERIENCE THAT’S BASED ON A FILM, THEY CAN THEN FIND OTHERS.”KENNY JOHNSTON, HEAD OF COMMUNICATIONS FOR POCKET GEMS, MAKERS OF THE “EPISODE” MOBILE STORYTELLING SERIES

6

|

T

HE

F

UT

UR

E

OF

C

US

TO

ME

R

DA

TA

things — a popular app, a collection of frequently watched videos or a live stream of an eSports tournament. It’s important, though, that it’s actually popular content and not something from the back catalog that lacks notable drawing power.

The “burger” comes with a danger for the company that offers it, though. At some point, management might be tempted to shed money-losing “burgers” from its budget sheet or (more dangerously) re-price them so they’re profitable.

“If you analyze it purely from a numbers perspective, you’ll say, ‘Why bother with the burger? We’re making money on the fries and soft drinks.’ But if you get rid of that burger, you’re going to go out of business real fast.”

Customer Data PlatformsWhile many companies are struggling to find a way to best compile and sift the data available to them, the technology to do so actually already exists.

It’s called a Customer Data Platform. At its core, this technology shifts control of a consumer database from an IT department to the marketing team. Gartner called it an “innovation trigger” when adding CDP to its Hype Cycle for Digital Marketing and Advertising a year ago.

That, says Gartner analyst Christi Eubanks, creates “a compelling promise — providing a holistic view of the customer to help execute and optimize personalized journeys.” Raab Associates, a Swarthmore, Pa.-based research firm, estimates CDPs will be generate up to $1 billion in revenue for users by 2019. And the value to companies that utilize them could be substantially more.

There are several types of CDPs, though, and choosing the right sort can be a bit confusing. Should an entertainment company build its own platform or work with an existing vendor? And, if it chooses to go with a vendor, which type is best?

There are pros and cons to each choice, though they’re hardly all equal.

Build your own: While it’s not an option for smaller companies, large enterprises certainly can explore the possibility of creating their own CDP. An enterprise going down this road will need to secure adequate cloud services and combine those with business intelligence tools and integration software. And, of course, it would need a large team to

oversee the operation. This option is expensive, but it’s doable.

It’s not doable quickly, though. In the absolute best case, a build-out of at least eight months is to be expected — and one to two years is more common. Early entertainment industry adopters in the CDP space are already up and running and seeing results, so a lag of eight to 24 months may give competitors the opportunity to either extend their lead or gain an advantage. Long-term, enterprises need to determine if they want to be in the CDP business in addition to their other endeavors.

Tag Management CDP: This may be, in many ways, the most marketing-friendly solution to CDP. It lets digital marketers categorize and tag advertisements and build out audience segments. It also works in a way that marketing professionals are used to.

The problem with tag management CDP is these systems aren’t built to connect to other types of data sources. That means they don’t have the breadth of integration larger companies might need. They also lack a big data component (i.e., the ability to deeply analyze the data to reveal patterns, trends, and associations), meaning you’ll still need a separate company to perform a deeper analytical solution.

For entertainment companies, tag management is more of a band-aid than a solution. It won’t help them use the data they’ve collected faster or better than their competitors. And, perhaps even more worrisome, it was not built with an adequate level of security to protect sensitive data like customer information, credit cards and more.

Data Management Platform CDP: Data management platforms have been a part of the advertising space for some time. In essence, they’re tools to gather and sell customer or audience data. For instance, if someone needs a specific sort of mailing list or wants to target a specific sort of customer, data management platforms are used to gather that information.

For much of the history of the internet, those were critical functions. But as Google, Facebook and Amazon have consolidated control of the online advertising space, the companies that run data management platforms have begun looking for new business areas.

That creates something of a problem, since these systems are designed strictly for advertising purposes and they

IDC

EMERGING MARKETSThe share of data coming from developing

markets will nearly double.

2012 2020

Emerging marketsU.S., China, Western Europe and India

THE (LOSS-LEADER)

“BURGER” COMES WITH

A DANGER, THOUGH. AT

SOME POINT, MANAGEMENT

MIGHT BE TEMPTED TO

SHED MONEY-LOSING

“BURGERS” FROM ITS

BUDGET SHEET OR RE-PRICE

THEM SO THEY’RE

PROFITABLE.

36%62%

7

|

T

HE

F

UT

UR

E

OF

C

US

TO

ME

R

DA

TA

0

30

60

90

120

$150B

GAMING MARKETSocial and casual gaming revenue will grow to $74.3 billion in 2021.

PwC

Traditional gamingSocial and casual gaming

20162015201420132012 2017 202020192018 2021

don’t offer an especially well-rounded option for entertainment companies. Nor do they tie into first-party data sources, which is a critical feature for content companies. Instead, they were built with aggregated data in mind. So companies that run these sorts of CDP are scrambling to figure out workarounds to that issue and building new features to better manage the information space.

Big Data Legacy CDP: Perhaps the strongest type of CDP is one that comes from a big-data background. Companies like Treasure Data are experienced in sifting through an amount of information that would overwhelm less specialized companies and finding actionable intelligence within it. They’re used to examining (and protecting) sensitive first-party data and have the proper workflow engines to parse the data.

The short-term hurdle they face is building a user-friendly interface that makes it easy for customers to quickly find data points they’re looking for. However, it takes a lot less time to build a front-end interface than it does to build a back-end system.

At big-data legacy CDP companies, the goal is to provide clients with granular-level details on users, including data such as:

• Real-time click, install, engagementand event data

• App revenue• Ratings• Rankings• Reviews• Downloads and payments data• Customer purchase history• Results from A/B tests

By tracking these core user and marketing metrics, entertainment companies can understand how their properties are being consumed by audiences and users. This not only helps executives determine the effectiveness of their marketing efforts, but (thanks to the company’s centralized source of customer intelligence) shows them other places their attention should be focused.

Treasure Data and companies like it offer a dynamic, scalable way to easily acquire and aggregate the fast-moving data streams without the need for technical support. That makes it easier for stakeholders to make confident decisions in a timely manner.

Entertainment companies need to remember that in a fast moving field,

it’s important to focus on a solution that solves all of the problems, rather than one that solves just a few but creates new ones in its wake. As the competition learns to better utilize their holdings to speak to customers from more than one level, it’s critical to avoid stopgap measures that aren’t capable of scaling.

“If you’re not close to your core efficiencies, you’re going to fail,” warns Nadeau. “It’s a different mindset. It’s a different culture. And it’s not simple. You’re getting into machine learning and you need dedicated specialists to do that.”

The race is already underway among entertainment companies to better understand their customers and use their habits and expressed preferences to make them aware of other properties — whether films, shows, games, activities or more — that they’re likely to enjoy and purchase.

Ignoring the trend not only leaves money on the table, it can put your company at risk of falling behind in an extremely competitive and fast-paced race. n

20162015201420132012 2017 2020201920180

10

20

30

$40B

INTERNET VIDEORevenue from streaming services will grow to $36.7 billion in 2021.

PwC2021

8

|

T

HE

F

UT

UR

E

OF

C

US

TO

ME

R

DA

TA

2016201520142013201220112010 2017 202020192018

DATA IS THE FUTURE

ENTERTAINMENT DATA SOURCES

0

10

20

30

40B

40 billionTBs

Data gathering projections: The digital universe will double

about every two years

By 2021, entertainment industries are expected to grow to record revenues globally. Gaming, film, television and internet video hold the greatest opportunity for big data collection.

Data in 2020: There will be 5.2 TB of data for every

person on the planet

That is equal to each person downloading 80 copies of

Grand Theft Auto V

of data will containvalue if analyzed

of data will requiresecure protection

33% 40%

Emerging markets: The share of data coming from developing

markets will nearly double

2012 2020

36%62%

Emerging marketsU.S., China, Western Europe and India

Data types: By 2020, almost half the data stored on the cloud will be entertainment

47% 35%Entertainment Surveillance

10%Electronics

8%Other

$36.7 billionInternet video

revenue

$49.3 billionBox office

revenue (2020)

$277.4 billionTelevisionrevenue

Sources: PricewaterhouseCoopers and International Data Corporation

$24.7 billionPC online gaming/

microtransaction revenue

$74.3billion

Social/casual gaming revenue