Faced with multiple evolving and disruptive forces, 52% of executives say they can no longer rely on traditional business models if they are to remain future relevant, according to EY’s report titled, ‘How are media and entertainment businesses reinventing in an age of transformation?’. The report analyzes the views of leading media and entertainment companies and their executives to reveal catalysts, strategies, and actions that are reshaping business transformation in a dynamic industry.
The survey further highlights a sense of perplexity among M&E businesses, with 28% indicating the need to reinvigorate their business, without a thorough knowledge of what aspects to prioritize. Due to a plethora of options available to invest in digital tools, one in five executives are unclear on how to prioritize their digital investments. The dilemma of whether to focus on content production for immediate gains as against building direct to customer and platform and data capabilities were cited as key points of contention.
Ashish Pherwani, Partner, Media & Entertainment Leader, EY India says: “With fast-paced transformations in business models and revenue streams, media and entertainment companies that otherwise are optimistic about change, are facing a challenge to determine a starting point. While there is no single path to reinvention, businesses are prioritizing direct to customer relationships, platformmatic ad sales and community subscription models, to wade through the waves of technological disruption.”
The report states that one in two Indian executives felt the pressure to maximize short term results as a barrier to developing innovative business models which also reflected in the findings where just one in three Indian executives believe in the upskilling of their existing workforce. 24% of Indian executives felt that their companies would cease to exist without innovation, demonstrating their confidence that traditional media will survive in the future.