New paths to growth in a complex, competitive media market
The traditional media industry is struggling to redefine its place in the world. The COVID-19 pandemic prompted more people to seek new shows and forms of home entertainment, creating an opportunity for platforms and new video-streaming entrants to move in.
In addition to the pandemic, changing consumer buying patterns and market pressure to develop new ways to create and distribute products and services have contributed to the current status quo for traditional media companies. Costs are up, revenues are down, and brand equity is a thing of the past. Consumers follow content. And they’ve never had so much to choose from.
Differentiation and relevance are key. But the time to act is now. Powered by new value plays, dynamic products and services and an agile business model, traditional media companies can redefine their place in the market landscape as relevant, profitable players.
Explore the SlideShare to learn more about the Media Value Plays:
Pick your play
Traditional media companies have several options. They can build new customer-focused platforms to combine capabilities across video entertainment, advertising, gaming, lifestyle, and so on, or revamp their business models to go direct to the consumer.
The short-term goal is to hold onto existing revenues, identify products, capabilities, services or contracts that are losing money (or might in the future) and divest or renegotiate. Longer term, companies need to evaluate their market position and determine the best strategy for their future. That could mean exiting the business entirely or radically transforming for growth.
Bottom line, traditional media companies must reinvent with a focus on achieving resilience, relevance and agility in an uncertain environment. We believe three key value plays can help address the complex questions facing media leaders:
Become a multi-sided media platform allowing partners to provide monetized services built around consumers’ buying habits and preferred experiences.
We believe these targeted value plays, supported by industry-specific solutions, can help traditional media companies transform and rediscover audiences and market opportunities.
But the time to act is now
As traditional media companies look to protect existing revenues, raise profitability and deliver on expectations for future performance, they’ll need to choose a path that supports three essential tenets of success:
Demonstrate market resilience with a reimagined business model.
Create and position relevance as a competitive differentiator.
Respond to market demand with the agility provided by a cloud platform.