Back to ArticlesTop digital trends in the entertainment and media industry
- Published on - Jan 09, 2022
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Today, the media & entertainment (M&E) landscape is radically different. YouTube, Netflix, Hotstar, Hulu and Spotify are household names and have revolutionised the industry. They have made people accustomed to content on-demand – tailored to their preferences and available whenever they need it.
In this changing environment, should companies in the M&E industry understand any particular trends to strike a chord with their audience?
We list below a few:
Channel loyalty will be a thing of the past
With content getting streamed endlessly across channels, consumers are no more tethered to linear distribution models based on pre-set schedules. For most people, it does not matter where and when they watch content. Indeed, having become accustomed to watching shows on laptops and smartphones, most cannot even identify the broadcast company or TV channel that initially brought them. As an example, the fact that the popular American fantasy drama Game of Thrones was produced for HBO did not matter to millions of fans across the world. They could and can still access any episode on digital media platforms.
With content getting streamed endlessly across channels, consumers are no more tethered to linear distribution models based on pre-set schedules. For most people, it does not matter where and when they watch content. Indeed, having become accustomed to watching shows on laptops and smartphones, most cannot even identify the broadcast company or TV channel that initially brought them. As an example, the fact that the popular American fantasy drama Game of Thrones was produced for HBO did not matter to millions of fans across the world. They could and can still access any episode on digital media platforms.
Data analytics will influence marketing
Marketing is also taking a new turn in the M&E industry, with artificial intelligence (AI) and machine learning (ML) shaping its execution. The days of mass marketing are over. As the trend of personalising content takes over, marketers can no longer throw spaghetti at the wall to see what sticks.
Streaming companies today reap success in marketing by applying AI and ML to analyse data on audience behaviour. They present their offerings to hyper-segmented consumers whose search patterns and expectations are studied using advanced algorithms.
Indeed, a growing number of consumers agree that they find relevant content through the recommendations made by the streaming company. They can also collect these pieces to create their personal ‘mini’ channel. The same holds in the case of music streaming platforms.
Audiences interact with the application and offer objective feedback – as soon as they tune into the right AI, they are presented with choices suiting their tastes. This is good for both content consumers and creators.
A galore of commercials – everywhere
At the beginning of 2019, the Indian ad industry stood at Rs. 61,878 crore¹ and was expected to touch Rs 85,250 crore by 2021 at a CAGR of 10.62%. Digital ad spends presently contribute 17% to the total advertisement expenditure.
With the projected increase in ad spending, it is evident that people will see more ads regardless of the channel they consume their media on. As data proliferates on digital channels, those ads will also be aired as per individual musings.
On the flip side, though, this can be annoying for web users who will be interrupted by more commercials – before, after and in-between their favourite content. To avoid negative reviews, broadcasters should provide them with the option to skip ads, instead of always forcing to upgrade to 'premium versions'.
Blockchain will transform the way companies manage digital rights
Although blockchain is still a term associated primarily with cryptocurrencies like bitcoin, it can potentially ease the complexities surrounding intellectual property rights in the M&E industry. The power of this technology lies in its ability to store content and make transactions in unique ways that establish more trust.
Blockchains can provide stronger proofs of ownership for intellectual property rights. This feature is not easy with conventional methods due to the increased availability of content and more chances for plagiarism. Once a work is registered to the blockchain, its owner gets a tamper-proof substantiation of ownership rights. That is due to blockchain imbibing information such as timestamps. It is then difficult to alter the recorded data.
By enabling real-time consumption-based pricing, blockchain can also improve revenues for content creators and media companies. It allows automated royalty payments based on the streaming of content and eliminates the possibilities of human errors.
With such changing trends in their industry, M&E companies do have innovative opportunities to serve their current and potential audiences. While they create their own plans for business growth, it is evident that personalised, targeted and easily accessible experiences will open the ways for more success.
