Media Industry Strengthening Service Portfolios to Gain Market Share
By Media Entertainment Tech Outlook | Tuesday, August 13, 2019
As new innovations accelerate the intersection of supply and demand in all sectors, media and entertainment marketplace dynamics—for customers and advertisers alike—are becoming "superfluid."
FERMONT, CA: In latest years, the worldwide media and entertainment industry has undergone a digital revolution, marking a transition to digital formats across the sector, while improving the global financial condition help the industry's non-digital expenditure. Mergers and acquisitions are leading trends in the worldwide media and entertainment sector, and sector integration has led to media conglomerates globalization. Leading media players are looking for the global marketplace to encourage and deliver their products. M&E industries are proliferating in emerging markets as increasing disposable incomes, and robust financial development in these markets help multiformat media gain a foothold. M&E businesses have significant growth possibilities.
The Business Model is Evolving
Disruption is sweeping through the M&E sector, boosting the invention and fast development of fresh company models and leading to uncertainty about well-established ecosystem sustainability. Consumers expect media and entertainment suppliers of all kinds to provide choice, comfort, and value, all wrapped in personalized, tailored experiences accessible on-demand and cross-platform basis—with restricted marketing and robust information security.
Adapting to New Realities
Increasing rivalry for spectators and advertisers, coupled with continuing decreases in subscribers, in many M&E businesses put pressure on topline performance. Costs are escalating at the other end of a margin squeeze — especially in the critical content and talent fields. Unsurprisingly, the cost-cutting mantra has once again raised its head as the main priority for leadership teams; however, today's solution is more holistic and nuanced than smooth cuts in brute force. What the M&E sector needs is a new level of operational excellence— the kind of decrease in strategic expenses that provides short-term outcomes and long-term efficiencies.
The Emergence of New Advertising Currencies
Advertisers are creating new currencies to better comprehend and target customers as the lines blur between linear and digital media. Audiences are all across the video platforms— from live TV to time-shifting and linked TV, and from the desktop to mobile and immersive videos. Advertising models are also developing new forms with this fragmentation, including programmatic, indigenous, vertical, 360-degree, and addressable advertisements. Measurement of the audience— the main element in the puzzle and critical for consumer understanding— has become more complicated and is still lagging.
Empowered Customers Crave New Experiences
Creativity, production, and monetization were linear in the traditional M&E model. Consumers have been passive for the most portion, waiting for content produced accessible at the moment dictated by others. Digital has developed a fresh, more atomized, more complicated, and, above all, more dynamic. As a result, customers of M&E are more empowered. They have steadily increasing expectations about how to deliver goods and services. A customer now expects personalized experiences from mobility and financial services to media and entertainment throughout their daily lives.
Technology Reinventing the Tax Model
The large-scale consequences of multinational M&E businesses must be met. Tax reform is indeed a point of inflection in what has become a much broader discussion about the tax function's future. Companies and tax managers will have to investigate how they participate with regulators and how they handle reporting to take benefit of new techniques in the coming year.
Globalization is critical for M&E firms seeking to construct scale, open up fresh markets, and stay competitive. While we see the increase of economic nationalism and the prospect of higher trade barriers, a suite of digital technology makes boundaries less important.