Your biggest competitor might be the one you never saw coming.
As the DVD and CD market rolled off a cliff, print stopped printing and new digital-only entrants became more dominant and influential than old guard publications, big media corporations have become used to their industry being turned upside down. A new breed of media company can now spot and respond to the favoured consumer consumption method – everything-on-demand, on any device. This digitisation also gives the new breed an important advantage over the pack – detailed audience data and insights. Knowing the type of content your audience like, how they prefer to consume it and on what device has enabled early adopters to tailor content and marketing to ensure maximum impact.
So with traditional revenue streams in the music, print and film industries all drastically disturbed, is it time for broadcasters to admit they’re next before it’s too late? The cable companies are ok, while cord-cutting continues, their fall in revenue is offset by growing demand for broadband. It’s the content creators that need to worry. Yes, you can license your content to Netflix but they’re also now a competitor, with their own content front and centre of their platform. As Apple prepare to compete with Amazon and Netflix, it’s worth remembering that your biggest competitor could be the one you never saw coming.
“If I’m a media company I’m competing against any other icon on the phone,” says IBM’s David Ingham. “Books and publishers are competing with video games. I only have 24 hours in my day, which app am I going to click? Then you have blockbuster films competing with cat videos”. So what can media organisations do to compete with Farmville and viral video? IBM are keen to point out the difference between digitisation and digital reinvention, the latter involves being bold enough to make the tectonic shift in how your organisation operates.
“Look at the customer first because they’re going to tell you what they need. They’re going to dictate the experience they want”. continues Ingham. “Most media companies have insights divisions but are they going far enough? Are they really gathering all the information they have about the customer?”
We recently spoke to David in depth about digital transformation in the media and entertainment industry – listen below
Download IBM’s Digital Reinvention in action for the media industry report