If there is any single industry that is grappling with fundamental business model changes, it is the Media & Entertainment sector. Even before the challenges presented by the recent economic crisis, the industry was grappling with a tidal wave of changes, driven at its core not only by the shift to digital, but also by a host of more ‘traditional’ concerns, including shifting consumer preferences, rising costs and more.
Looking forward, organizations across this broad and varied sector must look to position themselves effectively amidst a host of key challenges, including:
- Change in consumer behaviors and preferences – a result of the sea change in information availability and transparency across its key subsectors. Consumers are devoting more time and attention to (and being strongly influenced by) online news and video entertainment, blogs, search engines, online games, social networking, etc.
- Penetration into newer distribution platforms – covering a host of aspects including:
- Digital Cable, DTH and IPTV, digitization of newspapers, magazines, films and sale of online and mobile music
- Shift towards targeting consumers via personalized platforms such as mobile and portable devices
- Advent of attractive distribution channels such as social networking sites including Facebook, Twitter and LinkedIn
- The pricing conundrum – the now-pervasive desire for on-demand content continues to push the industry to its limits - what will consumers pay for? Will they pay for content at all? If they do, they want to pay for it once and then access it through multiple means e.g. through their television, computer or mobile device
- Emerging markets – with their consequent opportunities and challenges. While expansion into global economies such as China, India and Latin America presents significant volume and growth opportunities, it also carries substantial risks. These include regulatory risks (ownership restrictions, taxes), IP risks (piracy, copyright, licensing and reuse), content risks (cultural norms and local tastes) and currency risks
- IP Protection – advances in technology and distribution channels, the rising importance of less-regulated emerging markets, and the growth of open source and online video content combine to keep intellectual property protection a priority risk in the media & entertainment sector. Piracy and illegal distribution channels continue to expand in developing countries
The issues above do not take away from the more traditional concerns that all organizations still have with regards to cost containment, operations and supply chains maximization and new business development.
At The Smart Cube, we help our clients navigate this complex, dynamic landscape through focused insight and intelligence to support critical decision-making across a myriad of key areas. We provide our clients with an analysis of the current market situation with the capability to dive deep into each key sub-sector. We assist with decisions ranging from evaluating M&A opportunities across subsectors to studying supply chain trends and strategic sourcing requirements on a global basis. To learn more about our offerings in the Media & Entertainment space, please contact us.