Over a third (34 per cent) of media and entertainment executives admit that their companies may not exist in five years’ time unless they undergo serious reinvention.
The study, by Ernst & Young, was called How are media and entertainment businesses reinventing in an age of transformation? and called on the opinions of some 350 global industry chiefs.
It found that half of respondents no longer believe they can continue with their traditional business models while another 28 per cent conceded that their operations must change but they didn’t necessarily know how.
The analysis revealed three key challenges which the media and entertainment industries must counter if they’re to secure their long-term future. They were a shifting competitive landscape, rapid technological change, plus evolving customer expectations.
Executives identified operating model change (41 per cent) and operational delivery and execution (39 per cent) as their top transformation priorities.
Simplifying the enterprise emerges as a key theme in driving the next generation M&E operating model, with 55 per cent of all executives saying that they wanted to streamline their business by consolidating internal segments.
Again, data was seen as a panacea to organisation’s transformation ills. Sixty-two per cent of respondents see data as an opportunity for transformation. Some 56 per cent of executives indicated that they prioritise building first-party data, compared with just 13 per cent who would prioritise third-party sources.
Commenting on the findings, John Harrison, EY global media and entertainment sector leader, said: “Media and entertainment companies remain upbeat about change. But with such diversity of business models and revenue streams, the starting point is often unclear. The survey reveals that there is no single path to reinvention, but businesses can succeed by prioritising three key levers of change: operational excellence, innovation and up-skilling talent.
“The evolving nature of revenue generation, combined with pressure to release capital to fund growth, is leading companies to reevaluate transformation goals and how they respond to shifting customer demands. Making the most of data that resides across the enterprise is one of the most crucial tactics for realising positive change — particularly in helping businesses to compete by improving the customer experience.”