With technology disrupting the media business, half of the industry executives surveyed said they don’t think they will be able to rely on traditional business models, consultant EY said.
In the survey, 28% of executives said they need to reinvigorate their businesses to keep up with the times, but they were unsure what to prioritize.
But once they begin to make a change, 63% said that optimizing their business model will be transformational.
Almost two-thirds (62%) of respondents see the increasing availability of data as an opportunity for transformation with 56% prioritizing building first-party data, compared with 13% who prioritize third-party sources.
“Media and entertainment companies remain upbeat about change. But with such diversity of business models and revenue streams, the starting point is often unclear,” said John Harrison, EY global media & entertainment sector leader. “The survey reveals that there is no single path to reinvention, but businesses can succeed by prioritizing three key levers of change: operational excellence, innovation and upskilling talent. Embracing these ambitions can help them address short-term challenges and unlock long-term value creation.”
The three biggest factors driving media companies to make changes are a shifting competitive landscape; keeping pace with technology and changes associated with changing consumer expectations.
In the survey, 49% of the executives said that automation was the most important tactic for lowering costs.
Among executives at advertising and marketing companies, 56% said evolution of the product or service offering is a priority. That was a priority among just 15% of executives from production companies.
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