Media and entertainment companies in India say they must reinvent themselves to navigate the technological disruption impacting the industry
In the face of evolving and disruptive forces, 52% of executives believe that they can no longer depend on traditional business models if they are to remain future relevant, according to the latest EY report. Titled, ‘How are media and entertainment businesses reinventing in an age of transformation?’, the report delves deeper into 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.
“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,” Ashish Pherwani, partner, media and entertainment leader, EY India said.
Furthermore, the survey brings into the limelight how 28% of media and entertainment industry’s executives reinvigorate their business, without possessing a thorough knowledge of what aspects to prioritise. This perplexity stems from the fact that there are a plethora of options available to invest in digital tools, making it difficult for the executive to prioritise their digital investments. The dilemma is whether to focus on content production for immediate gains or build direct to customer and platform and data capabilities were cited as key points of contention.
As per the report, 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. It also stated that one in two Indian executives felt the pressure to maximise 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 upskilling of their existing workforce.
The survey unearthed key ambitions that media and entertainment companies across sub sectors are prioritising.
From pursuing operational excellence and agility, rebooting innovative strategy and approach to accelerating talent and skill development, the survey found these three key ambitions which the media and entertainment companies across sub sectors were prioritising. 67% of the executives prioritise consolidation of internal segments to streamline the business, while 50% of executives identify de-layering management and increasing spans of control for remaining executives to be prominent. Meanwhile, 48% of executives feel the pressure to maximise short-term results as a barrier to innovation, balancing sustained success against long-term vision requires a structured approach. 34% of executives see incubators within the core of the business, as a driver of innovation.
Moreover, 33% of the media and entertainment executives cite upskilling of the existing workforce as the key to talent development highlights the growing imperative to foster continuous learning. The study reveals that to remain relevant, workers need to migrate up the value chain, reinventing themselves and continually improving their capabilities.