Sep 2018 - Market Analysis Perspective - Doc # US44259717
Market Analysis Perspective: Worldwide Digital Service Providers, 2018 — B2C
By: John Jackson
This IDC Market Analysis Perspective examines digital service providers. Alibaba, Amazon, Apple, Facebook, Google, Tencent, and a handful of other platform-centric service providers are expanding and diversifying their participation in, and influence over, diverse markets including media and entertainment, news and information services, marketing and advertising (including mar/ad tech), telecom/broadband, transportation, retail, datacenters, workplaces, IoT, and travel and hospitality.
These entities, with monthly active user bases in the multiple hundreds of millions or multiple billions, will increasingly aggregate both their own and third parties' services against their massive active user bases, transforming the way digital services of all types (and some physical services) will be created, aggregated, packaged, priced, distributed, and consumed.
"The early stage megatrend we called out in last year's document continues to progress. An increasingly broad array of services are being aggregated by these digital service providers against their very large audiences, underpinned by big data–driven precision and user experience tailoring," said John Jackson, vice president, Consumer Research, at IDC. He continued, noting, "Clearly it's disruptive at the customer relationship level and the macro industry level. A social strategy is insufficient. Strategies, tools, and policies that address the growing gravity of these platforms as dominant distribution channels are required."