Digital transformation is positively impacting every industry, and the media industry is no exception. Media brands are constantly exploring new digital strategies to maximize online visibility. This blog will explain how Digital Transformation has brought significant success to the media and entertainment industry. Keep reading to discover more.
Why is Digital Transformation in Media Important?
Media organizations need to take advantage of new technologies and digital distribution channels to better reach and interact with the audience.
Digital Transformation can bring many benefits to the Media and Entertainment Industry. It can:
- Increase their revenues
- Improve their operations
- Better competition
- Personalized and interactive customer experiences
- Customer loyalty
Why Embrace Digital Transformation in the Media Industry: Market Insights
Here are the compelling market insights that make digital transformation a crucial step for success in the ever-evolving media industry.
- According to Gartner, 91% of businesses have already implemented digital initiatives, and 87% of senior business leaders view digitalization as a top priority.
- Forrester reports that investments in Digital Transformation are growing more than three times faster than overall IT spending.
- The World Economic Forum predicts that Digital Transformation will contribute $100 trillion to the global economy by 2025. It also suggests that about two-thirds of this value from digitalization will come from platform-driven interactions.
- Gartner forecasts that intelligent systems will be responsible for 72% of customer engagements by the end of 2023.
- According to IDC, 30% of media organizations are gearing up to increase innovation and revamp their business models to future-proof their operations.
Top Digital Transformation Trends for Media & Entertainment
Cloud Technologies Adoption
Media and entertainment companies increasingly invest in cloud technologies, especially those beyond the typical SaaS offerings, to support more robust and secure IP generation workflows. Nutanix’s third annual Enterprise Cloud Index reveals that enterprises in the media and entertainment sector lead in using multiple public cloud services and deploying hyper-converged infrastructures (HCI). Media and entertainment companies regularly produce and manage petabytes of data, so it’s no surprise that they are among the first to adopt cloud-based solutions. Continued adoption of public/hybrid cloud and HCI can help production and distribution workflows achieve optimal economics and greater efficiencies.
Media’s digital transformation widely uses machine learning to boost the performance of content and ads. Machine learning algorithms can analyze audience behaviour and preferences data to provide insights and recommendations for developing more relevant content and advertising, benefiting media organizations.
A machine learning algorithm could be trained on a massive trove of user behaviour data to predict what content will do well with a specific demographic. This can assist media organizations in producing material with greater potential for audience resonance and participation.
Additionally, machine learning can enable media organizations to automate tasks such as content recommendation and personalized advertising, providing their audiences with a more tailored and hassle-free experience.
AI enables smarter content, improves audience segmentation, and enhances the user experience. Therefore, media organizations wishing to remain competitive quickly rely on AI as a crucial resource. AI-driven media has developed the use of creative intelligence, which is one of the most fascinating developments. Tapping into the potential of AI can enable media organizations to produce higher-quality, more engaging content.
Automation of Advertising and Personalized Content
The media and entertainment industry will continue to use data science, AI, and ML to automate the display of personalized content and provide consumers with more engaging, topical options.
Streaming services like Netflix and Hulu have used machine learning (ML) for years to present content based on user preferences automatically. Netflix, YouTube and newer services like TikTok are replacing their rudimentary intelligent recommendation algorithms with modern, end-to-end, personalized content experiences with AI.
Top studios use machine learning to tailor theatrical trailers to specific audiences by highlighting specific elements. These platforms will continue improving the effectiveness and efficiency of distributing content by combining structured and unstructured data with ML to connect viewers with the most relevant content better.
The media and entertainment industries must revamp their content distribution approaches to maximize profits while decreasing expenses. Increased competition and difficulty in the advertising operations market are the reasons for this. AI and ML are helping businesses achieve these aims. Advertisers and media outlets can make more one-of-a-kind, tailored offers to customers by implementing hyper-targeted ad campaigns that utilize various data points to create comprehensive profiles of their target audiences.
Also Read: AI Generated Beer Commercials
Media and entertainment companies constantly face pressure to curb IP infringement due to the increasing number of viewers accessing their favourite shows and films online.
The cyber attack on Sony Pictures in 2014 shook the entertainment and media world. Even the most successful, well-prepared businesses learned the hard way that they are vulnerable to cyber-attacks.
Companies in the media and entertainment sector have chosen to work remotely, exposing themselves to the same vulnerabilities and attack vectors as businesses in other sectors. Media and entertainment companies are working hard to bolster their cyber defences to protect their new computing paradigms and digital transformation efforts.
D2C Video Streaming
The shift from traditional broadcasting to D2C (direct-to-consumer) video streaming is a major development. As a result, viewers have more options than ever before in terms of programming, viewing time, and device accessibility.
Most companies and consumers still lack a comprehensive understanding of the metaverse. However, play-to-earn games, online real estate, non-fungible tokens (NFTs), and cryptocurrencies are quickly changing the landscape of metaverse development, emerging as popular features and technologies. Despite the recent drop in cryptocurrency prices, the media and entertainment industries continue to find exciting new opportunities in the metaverse and its underlying technologies.
Internet of Things
When digital transformation occurs, companies often use the IoT to make content more interactive and tailored to individual viewers. Media companies, for instance, can reach their target audiences in novel ways by using Internet of Things (IoT)-enabled gadgets like smart TVs, streaming devices, and smart speakers. Giving viewers more control over how and when they consume their work can aid media outlets in expanding their content’s reach and attracting more viewers.
Furthermore, media organizations can gather information about audience behaviour and preferences using sensors and other devices enabled by the Internet of Things. They can then craft more specific and effective content and advertising using this information. Media companies can use IoT sensors to monitor users’ viewing habits and then utilize that information to make recommendations based on those users’ specific tastes.
Major Benefits of Digital Transformation in Media and Entertainment Industry
The media and entertainment sectors have experienced four major digital shifts.
Enhancing User Experience
Back then, people viewed films on analogue equipment. However, these days, theatres “digitalize” films. Digitalization allows audiences to enjoy more detailed visuals and audio. Digitalization in the entertainment industry has led to 3D, 4D, and even 5D film development.
Digitalization has lowered the barriers to entry for making and distributing musical recordings. You don’t need to invest in a physical copy of the CD to enjoy the album. Fans can access music videos online and download songs thanks to the internet. Due to the widespread adoption of digital music, numerous websites offer free digital file downloads.
People around the world have spread the “second screen” phenomenon. Many people who watch TV also engage with the content using a tablet, smartphone, or other electronic device. You can watch TV on your portable electronic device between shows or during commercials. This movement encourages people to become more involved in what they’re watching on TV. Social media also promotes various television programmes.
In the past, gamers physically travelled to a store to purchase a video game. Players can now download the game digitally. Players can compete against opponents in different locations thanks to online gaming. High-definition graphics and better user experiences are driving the industry’s rapid growth. Furthermore, record highs have been reached in mobile game sales.
The media and entertainment industries will succeed in the future by embracing digital convergence. Standard and easy-to-access forms of digital media are increasingly becoming available on the go. The entertainment and media industries recognize the benefits of going digital.
The Media & Entertainment Industry: Ready for Tomorrow
In summary, digital transformation trends shape the media and entertainment industry, presenting unprecedented challenges and opportunities. The media industry embracing digital transformation has many upsides, including increased audience engagement, new revenue opportunities, and cost savings.