A new survey from EY has revealed 34 per cent of media and entertainment executives believe their companies will no longer exist in five years unless their business undergoes reinvention.
The survey polled 350 global industry executives to reveal how they see the future of the M&E industry.
It also found 50 per cent of executives say they can no longer rely on traditional business models if they are to succeed in the current landscape. The survey further highlights a sense of inertia among many M&E businesses, with more than one in four (28 per cent) indicating they need to reinvigorate their business, but that they don’t know what to prioritise.
Respondents said there are three big drivers of change within the industry: a shifting competitive landscape, which could lead to pressure on profitability; keeping pace with technology as businesses evaluate digital innovations, such as AI and 5G; and challenges associated with changing customer expectations, which is impacting the uptake of products and services.
The survey found that M&E execs see operating model change (41 per cent) and operational delivery and execution (39 per cent) as their top transformation priorities. Simplifying the enterprise emerges as a key theme in driving the next-generation M&E operating model, with 55 per cent of all executives indicating that they want to streamline their business by consolidating internal segments.
Almost two-thirds (62 per cent) of respondents see the increasing availability of data as an opportunity for transformation, with 56 per cent indicating that they prioritise building first-party data, compared with just 13 per cent who prioritise third-party sources.
Other key findings from the survey include:
- Only 20 per cent cite corporate strategy and their CEO’s vision as a leading innovation driver
- 46 per cent say automation is the single most important tactic for achieving cost savings
- 49 per cent prioritise upskilling the existing workforce as the best way to develop talent
- Subsector priorities vary: 56 per cent of advertising and marketing companies say evolution of the product or service offering is a priority, falling to 15 per cent among production companies
John Harrison, EY Global Media & Entertainment Sector leader, said: “Media and entertainment companies remain upbeat about change. But with such diversity of business models and revenue streams, the starting point is often unclear. The survey reveals that there is no single path to reinvention, but businesses can succeed by prioritising three key levers of change: operational excellence, innovation and upskilling talent. Embracing these ambitions can help them address short-term challenges and unlock long-term value creation.”