There appears to be a disconnect between media and entertainment companies and consumers using IoT products.
At least that’s the conclusion of a new report by EY (Ernst & Young) focused on the impact of the Internet of Things on media and entertainment.
The major hurdle for media and entertainment companies is the lack of consumer understanding of the Internet of Things, according to the report.
With limited access to data and feedback from consumers, media companies are seen as not fully engaging in the platform.
One of the key issues identified is the leveraging of location data, such as from all kinds of smart and connected devices.
“Think about the sensors that exist in our lives today, in the home ,” Howard Bass, global media & entertainment advisory leader at EY, told the IoT Daily. “Sensors know how many people are in the room or the emotional state of those people.
“Content presentation will adapt at scale to those data points,” Bass said. “If you walk into a room and you’re with your kids and we know that from the sensor data, we might pop up content that’s relevant, that’s appropriate for your kids.”
The report suggests that media companies should create new experiences for consumers based around IoT products already in use to spark consumer interest, and ultimately gain the insight needed through engagement data.
For now, the top areas for consumer interest in connected homes are appliances, security, energy management and other monitoring.
The study identified three key areas for media and entertainment companies to focus on to better leverage IoT:
The opportunity comes with some associated risk, however. The challenges and risks identified in the report include regulatory hurdles, privacy, cybersecurity, possible new legal precedents, intellectual property rights, lack of standards and scaling to reach critical mass.
The key is that the customer experience can be affected.
“One of the challenges for media and entertainment companies scaling the capabilities that IoT presents is the challenge of consumers opting-in and letting companies use that data to help improve their experience,” Bass said. “If we’re not careful with how we use the data, we can actually create a worse experience, one that actually interrupts the consumer's experience.”
And all of this isn’t happening in the future, according to Bass.
“Absolutely, it’s now. In June of 2016, there are deals being cut by service providers, agencies, etc. This is not three or five years from now, it’s happening today.”