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The state of the market we have known before the pandemic will never come back. COVID has significantly disrupted the media industry, which made a consumer even more demanding. To keep up with ever-changing demands, the industry had to adapt and transform digitally. Even though digital transformation is a complicated journey, it is truly rewarding. The most dedicated leaders will gain a future-proof digital base for facing upcoming challenges and recognising opportunities ahead of the time.
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New revenue opportunities: Along with the online world becoming an integral part of our lives, the media industry has got an opportunity to expand their reach through different channels and content. One of such opportunities is tapping into social media. Modern media consumers enjoy a nearly infinite flow of highly engaging user-generated content, which is also highly personalised. More than that, around 60% of consumers tend to come to user-generated content for entertainment if other media providers fail to instantly engage users with recommendations (Deloitte, 2022). Another important development is content globalisation. The internet allowed us to access the furthest parts of the world in one place. Modern consumers are excited to see more culturally diverse content, which is also the reason why K-pop music and Korean drama have reached such a worldwide success (Simon, 2022). Even though those opportunities have a huge potential for any media company, those are impossible to achieve without a proper digital infrastructure. To tap into a new digital media playground and stay competitive, companies have to shift their focus from old standard practices to emerging technologies.
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Optimised media supply chain: Content is king in the media environment. With the rising appetite of consumers for a broader and more personalised content selection, technology empowers media companies to keep up with harsh requirements of today's market. Virtual workspaces have become a catalyst for connecting distributed teams and accessing valuable talents from every part of the world without sacrificing productivity levels (Adobe, 2022). More than that, optimised media supply chains streamline creative activities and automate mundane tasks which results in accelerated time to market. Utilising digital technologies, companies create 360-degree visibility over all the processes, which help to manage the entire content workflow: from content creation to distribution. In turn, a company gains greater operational efficiency and a more robust creative process (Accenture, 2020).
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Omnipresent reach: Traditional media outlets, which securely reigned for decades in the market have significantly lost their positions in the eyes of a young consumer. Now the new generation finds their favourite content online and that is also where advertisers are increasingly investing their money in (Kantar, 2022). Modern consumers desire their content to be available in all the desired channels while having a seamless and personalised experience. More than that, modern consumers do not stick to using only one media source at a time: they multitask with other media more than 55% of the time (Bain & Company, 2022). Such requirements are impossible to reach without digital transformation. New technologies allow companies to connect, measure and automate processes across all the channels. Moreover, such a system delivers a seamless content experience for a user on any device regardless of content type (Accenture, 2020). This way media companies can engage with more consumers without sacrificing productivity, efficiency and content quality.
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Data-driven decision-making: Data has become another driver of long-term company success and a more informed decision-making process. In the time when personalisation has become a key demand of a modern consumer, making wrong decisions regarding customer experience has a greater negative impact on business performance than ever before. Modern decision-making process requires in-depth insights and real-time visibility based on all around data. To get a 360-degree view, integrating proper technology is an inevitable step for any future-oriented media company. Advanced analytics open new possibilities to deliver better recommendations and more relevant ads for a consumer as well as give an upper hand when selecting the right content to produce and other strategic decisions (Bain & Company, 2019). As a result, leveraging advanced data analytics, digital mature companies can improve data generated business value up to 42%. While digital laggers can experience only 18% improvement (Accenture, 2021).
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Efficient use of resources: It is common to see digital transformation as a financial risk above its other benefits. However, strategically executed digital transformation brings to the company significant financial savings and more efficient use of other resources, which is especially relevant for the media industry. According to Accenture research (2019), overhead costs are the largest expenditure for media companies. Such a tendency comes from duplicate processes across an organisation while they share the same end goal. Content distribution and metadata management are among some examples of possible duplicated activities. Digital transformation can help media companies consolidate similar processes, which directly lead to reduced costs on unnecessary activities. As a result, more digitally mature companies are able to cut around 20% of their expenses (Accenture, 2019). More than that, overall productivity and operational efficiency can increase up to 50% (Accenture, 2021).
Even though digital transformation has proven on several counts to streamline the performance of many operations, the industry is still too careful when it comes to taking necessary steps towards needed changes. Want to learn about how exactly digital transformation can help your media company? Let's get in touch and explore all the possibilities!
Reference List
Accenture. (2019). Fuel the core of your media and entertainment business. Retrieved from https://www.accenture.com/_acnmedia/pdf-92/accenture-digital-transformation-in-media-businesses.pdf
Accenture. (2020). The cloud imperative for the media industry. Retrieved from https://www.accenture.com/_acnmedia/PDF-140/Accenture-cloud-imperative-media-industry.pdf
Accenture. (2021). Fast-track to future-ready performance. Retrieved from https://www.accenture.com/_acnmedia/Thought-Leadership-Assets/PDF-4/Accenture-Future-Ready-Operations-POV.pdf
Adobe. (2022). Creative collaboration for remote and hybrid teams. Retrieved from https://www.adobe.com/creativecloud/business/teams/resources/articles-videos/creative-collaboration-for-remote-and-hybrid-teams.html
Bain & Company. (2019, May 6). In Rewrite: Funding Media’s Transformation. Retrieved from https://www.bain.com/insights/in-rewrite-funding-medias-transformation/
Bain & Company. (2022). Six Shifts Changing the Future of Media. Retrieved from https://www.bain.com/insights/six-shifts-changing-the-future-of-media/#
Deloitte. (2022, March 28). 2022 Digital media trends, 16th edition: Toward the metaverse. Retrieved form https://www2.deloitte.com/us/en/insights/industry/technology/digital-media-trends-consumption-habits-survey/summary.html
Kantar. (2022). 2022 Media Trends & Predictions. Retrieved from https://www.kantar.com/campaigns/media-reactions/download-report
Simon, A. (2022, January 16). The Shift from Local to Global Distribution is Reshaping the Entertainment Industry. Retrieved from https://medium.com/@adamjsimon/the-shift-from-local-to-global-distribution-is-reshaping-the-entertainment-industry-b52988816283
