Over the past several years, we have seen dramatic shifts in the media and entertainment industry including the way content is produced, shared and monetized. When I say content, I’m speaking about advertising, movies, music and online published content. The next generation of content delivery has arrived. Content is no longer a singular narrative delivered via “one-way media”. It’s about content that can be delivered via many platforms simultaneously. Consumers are demanding more content and want it in real time. Even more so, they want more relevancy in the advertisements that are presented to them. They want movies on-demand and videos at their fingertips. Major changes to say the least.
These shifts have changed the way the industry has been able to compete and perform. We believe that the victors will be those that clearly understand which of their brands are performing and which aren’t. They will make fact-based decisions on whether or not to keep the non-performing brands. Those who are successful will be able to analyze their audience behaviors and optimize their advertising with precision and timeliness. The victors will be able to produce, share and distribute content through a plethora of distribution channels to drive increased revenues. They will know what channels are most effective, what utilities are most valued and they will be able to seamlessly handle the complex world of monetizing their content and how revenue is recognized.
In this new world, the media and entertainment companies who are successful will leverage big data analytics to understand the success or failure of their advertising. Their marketing people will know what resonates with their audiences by analyzing the massive amounts of data now at their fingertips. They will be able to stop revenue leakage that is the result of a more complex order-to-cash ecosystem. The order-to-cash processes will be streamlined so that executives can focus on their core business. In this new world, companies that succeed will be able to easily comply with swiftly changing SEC and FASB laws on how licensing revenues are accrued. They will create more cross-channel and integrated advertising and marketing as a result of new and emerging distribution channels.
In this new world, media and entertainment companies will fine tune their business processes to such an extent that they are able to focus on what is critical to their success right now – digital transformation.