Faced with multiple evolving and disruptive forces, 52 per cent 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 analyses 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 per cent indicating the need to reinvigorate their business, without thorough knowledge of what aspects to prioritise. Due to a plethora of options available to invest in digital tools, one in five executives are unclear on how to prioritise 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 said, “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 prioritising 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 upskilling of their existing workforce. 24 per cent of Indian executives felt that their companies would cease to exist without innovation, demonstrating their confidence that traditional media will survive in the future.
The survey also unearths, three ambitions that M&E companies across subsectors are prioritising above all else:
Pursuing operational excellence and agility is the industry’s top transformation ambition
Executives believe that simplification is the hallmark of the new operating model. 67 per cent of the executives prioritize consolidation of internal segments to streamline the business, while 50 per cent of executives identify de-layering management and increasing spans of control for remaining executives to be prominent.
Rebooting innovation strategy and approach
With 48 per cent of executives feeling the pressure to maximize short-term results as a barrier to innovation, balancing sustained success against long-term vision requires a structured approach. 34 per cent of executives see incubators within the core of the business, as a driver of innovation.
Accelerating talent and skills development
33 per cent of the M&E executives cite upskilling of the existing workforce as the key to talent development highlights the growing imperative to foster continuous learning. To remain relevant, workers need to migrate up the value chain, reinventing themselves and continually improving their capabilities.