Well, it was just a matter of time. Now, Xbox has joined the game for original content with Xbox Studios. Like water always runs down hill, the drive of distribution is always toward building content. Microsoft stands the most to gain by leading this charge toward entertainment. They already lead the device category. If you think about it, between the 91% PC category that is locked up by Microsoft and the console category that they lead with 27% of all major devices connected to the TV, no brand is more ideally positioned to win eyeballs in the family room.
This year, DBA Worldwide partnered with Microsoft to develop ways to help brands participate in this new space. The digital TV industry is a land grab. Just like in the early days of America, the pioneers who led the way, claimed the land. Netflix, Amazon and now, Xbox have all determined that media aggregation is not enough. Now, original content has become core to the differentiation strategy of these leading brands. It all seems familiar to the cable TV revolution, from broadcast TV. Again, there is plenty of room for several major players in this TV revolution. But, this time there will not be hundreds of competitors. There will be millions.
What does this mean for the brands who hesitate? Will they miss out on the future? We expect that most brands will stand by and wait until the audience online is big enough to take seriously. That is when the land grab will be over. That’s why brands like Microsoft are stepping out so aggressively.
At DBA Worldwide, we are excited about the addition of Xbox Studio content led by experienced industry executive, Nancy Tellem, formerly of CBS Corp. This provides a unique audience opportunity for the brands that want to partner with content. We see the possibilities for interaction between brands and consumers in this pioneering new space. We partnered with Microsoft because we see the same future that is envisioned by them. The next five years will be like when TV was first introduced to the public. Advertisers and entertainers have the opportunity to define how this media will be funded, and how it will influence culture. We believe Microsoft will be one to watch. There will be many more brands joining this revolution soon. Hang on. It’s going to be a wild ride.