RSS FeedBy M. Isi Eromosele
In 2011, media and entertainment companies will face many complex operational challenges, including the increasing impact of technology, digital rights management, new and developing revenue models and recently empowered consumers. Nevertheless, it is expected that there will exciting developments within the industry. A digital revolution is driving a customer-driven change in how media technology is used.
Consumers are replacing mobile phones with smartphones, printed text with e-readers and regular televisions with Internet-linked TVs. Media consumption is now fully digitized, with consumers a mere click away from a boundless selection of music, videos, games, news and more. Media and Entertainment companies will be exploring numerous options that could grow their revenues and markets as sources of content continue to grow, consumer electronics develop and new platforms come out.
During this period of tremendous change, Media and Entertainment companies ought to concentrate on reducing costs, increasing profits and maintaining market liquidity, even as they transform themselves to serve the changing needs of their global customers.
Digital media consumptions, especially among the younger generation will come at the sacrifice of its traditional equivalents. In a survey, 60 percent the younger generation audience (18 - 21 years old) said they watch much less regularly scheduled television as a direct consequence of their viewing online television. This type of change to digital media could be problematic for some M & E companies, since their major means of online revenues have been ad-supported models, which yield considerably lower returns than broadcast television.
It is apparent that media companies would require innovative approaches to grow their digital advertising revenues in 2011. At Oseme Group, we see three areas for potential innovation:
- Adoption of new sophisticated revenue models that extend beyond mass advertising to deliver personalized and related promotions.
- Use of sectional and adjustable pricing plans. It should be noted that while ad-supported model may be preferable to many companies within the industry, a large part of the digital audience is eager to pay for digital content
- M & E companies should offer flawless experience to their audience. This would involve portability across multi-channel devices as well as multiple experiences within single devices.
Implementation of the above innovations would require much deeper understanding of target audiences. Our surveys have indicated that many consumers are willing to share personal information in exchange for experiences they value. Additionally, hybrid forms of business models could help companies please a much wider ranger of their target audiences.
To help Media & Entertainment companies better adapt to the sweeping changes taking place in the industry, Oseme Group recommends the following:
- Acquire inventive business models that exploit opportunities presented by new interactive platforms
- Utilizing creative Business Design methods, reorganize internal processes and support technologies to underpin the new business models
- Using integrated Social CRM algorithms, obtain consumer data to enable deep analysis for more efficient targeting and delivery of services
In order to remain relevant and profitable, media and entertainment companies must adapt to the sweeping changes that are evolving within the industry and develop new business models that will help them implement the necessary realignment that need to take place.
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M. Isi Eromosele is the President | Chief Executive Officer | Executive Creative Director of Oseme Group - Oseme Creative | Oseme Consulting | Oseme Finance
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