The future of the media industry is of vital importance to everyone in the communication industry, whether it be news or brand communication. Changes here are going to ripple across all related industries for a long time to come.
Booz & Company recently released their perspective on the media industry and had the following to say: “As 2010 begins, the industry is truly at a Darwinian moment, in which the evolutionary process will rapidly distinguish between winners and losers. The view of Booz & Company’s media and entertainment practice is that the companies that will define the next wave of industry growth will require competencies that are substantially different from those that ensured success during the analog era. Previously, winners were defined by their strengths in content development, packaging, and distribution—all key for an entertainment world characterized by scarcity.
“The digital era is characterized by unprecedented levels of consumer choice, ubiquity, and interactivity. To succeed in this more dynamic environment, companies need to acquire and build new skills. They must excel at developing deep audience insights; building consumer relationships across multiple platforms and user environments; creating targeted content, applications, and advertising opportunities; and managing a mix of monetization models across advertising, subscriptions, and commerce.”
The management consultancy - anyone noticing how management consultancies are increasingly commenting on issues key to the operation of ad agencies - listed 10 key developments shaping the strategies of leading media and entertainment companies. here are a couple of them:
-- Although most companies have cut costs in the past year, ongoing structural changes in the media and entertainment industry will require continued vigilance on cost reduction—even as advertising and retail markets stabilize.
-- The traditional value chain of marketers, agencies, and media companies will continue to evolve, unravel, and be reconstituted in more heterogeneous combinations.
-- Media sales and marketing teams will need to go beyond basic advertising placement in order to drive breakout growth.
-- Media metrics to measure spending effectiveness, with a greater emphasis on results, are evolving across the marketing mix and at all stops along the path to purchase (at home, on the go, in the store).
-- Social media outlets are becoming important distribution hubs for content, given consumers’ propensity to share content, links, and networks.
-- The rapid expansion of online video, along with new “tablet” devices and readers, will compel media and entertainment companies to regain control of the customer interface in order to better monetize the digital experience.