Until recently, there was a clear recipe for the success in the media and entertainment industry. Now that technology advances have made a lot of things possible, the media and entertainment industry should also stay updated. To thrive in the technological environment today and even for the future, the sector has to drive both efficiency and innovation. Furthermore, media and entertainment should also embrace new approaches to development of content, operations, distribution, technology and monetization. Simply put, they have to adapt their capabilities, strategies and operating models to address various key imperatives.
At the dawn of a new era, a huge expansion of human communication is influencing culture far and wide. Revolutionary technological advances are just part of what is happening, and that is unifying humanity and turning it to what is known as a global village. Together with the technological advancement, the media and entertainment industry is growing fast. The information revolution has made the process of information speedy, and news and information can be sent in a flash to any corner of the globe.
Consumer spending and time are shifting to digital. However, the ability of media companies to monetize consumer engagement in the digital environment is well below what it is in analog media. Key levers are the introduction of more variable cost through maintaining lesser staff editors, content producers. Rather, manage networks of external contributors, develop greater consistency and scale in approaches to technology and content production, attacking fixed costs via centralization, offshoring, outsourcing and rationalizing portfolio. These days, advertisers demand more relevance, accountability and interactivity. Spending on traditional paid media is under pressure since advertisers devote more resources to database, digital marketing. The change requires the media and entertainment field to increase focus on innovation and ROI when crafting advertising solutions.
The shifts in technology are impacting the value of content and distribution. Nowadays, consumers are no longer satisfied with print, video, or other forms of information and entertainment passively. In a search-driven world, consumers actively are looking for control, interactivity and community. Therefore, ad-supported media companies have to develop a robust digital toolkit to create premium inventory. The goal for media organizations, move from building impressions to creating relationships with consumers, directly and on behalf of the marketers. New strategies combine content and apps could offer considerable value to media and entertainment firms across both digital and traditional media. For instance, companies could use relationship marketing strategies for driving consumers to theaters, stores and other screens and to activate other desirable actions as well.
At present, social media, online video and mobile media are expanding quickly. They should actively participate in the platforms of growth of the future. Making this happen would need mastering a new skills set and strategies that involve portfolio and business development, technology and software. Creating a successful innovation culture could also be a major element of the path forward. For a lot of media firms, this would require greater openness in the innovation processes as well as the need to embrace more systematic approaches, trying a lot of things, yet scaling up only those that work.
The growth of global media and entertainment will be primarily fed from the emerging Latin American, Middle East and Russia markets. Across the regions, the multimedia landscape is rapidly developing, and in most cases, traditional barriers related to regulation and distribution are no longer very significant. Firms that are in search of growth, have to evaluate acquisitions and partnerships that result in a wider exposure to these geographies. Media and entertainment organizations seek to boost value of their media assets via merging creativity with technological advances. These companies are looking to reduce the cost and risk of managing network services delivery, while maintaining high definition, 3D Content, Standard Definition for conventional TV viewing aside from an ever-expanding array of mobile devices.
The expansion of digital technology, manifested in fixed and wireless network connectivity which enables the growing numbers of connected devices and new routes to a user, is changing the structure of the sector, driving new strategies to produce, distribute and monetize content across the landscape. Consumers will have far more content to choose from, available to them anytime, anywhere in any mix, through a lot more delivery options as well as devices. In each corner of the industry, empowered users are gravitating to brands, platforms and experiences, which are differentiated as much by the quality of their customization, curation, and conveniences as through the quality of their content. For the executives in the field, the formula for success is radically changing. It is no longer enough to develop content for the eyes. These days, one should create a fan-centric business.