More than half of media and entertainment (M&E) executives believe that they can no longer rely on traditional business models, while a fourth of them think their companies will cease to exist without reinvention, said a new report.
Consulting firm EY, which surveyed more than 350 media and entertainment executives, also said there was a sense of perplexity and a lack of clarity among M&E businesses, with 28% of the executives indicating the need to reinvigorate their business without knowing what should be their priority.
There are a large number of digital tools available, but one in five executives reported a lack of clarity on how to prioritise their digital investments. The key question that the executives said they were faced with was whether to focus on content production for immediate gains or build direct-to-customer platforms and data capabilities.
“With fast-paced transformations in business models and revenue streams, media and entertainment companies that otherwise are optimistic about change are facing a challenge to determine a starting point,” said Ashish Pherwani, partner, media & entertainment leader, EY India.
According to the survey, globally 50% of the executives have lesser faith in traditional business models compared to 52% in India. The number of those who think their companies need reinvention was 34% globally, and 24% in India.
EY said one in two Indian executives was under pressure to maximise short-term results, which was a barrier to developing innovative business models. However, only one in three executives said they believed in upskilling their existing workforce.
Meanwhile, M&E companies across sub-sectors underlined three main ambitions when it comes to digital reinvention: pursuing operational excellence and agility; rebooting innovation strategy and approach; accelerating talent and skills development. As many as 67% of the executives surveyed said they want to prioritise consolidation of internal segments to streamline the business. A fairly large number, 34%, see incubators as a driver of innovation.