Lausen Flood posted an update 5 months ago
In 2022, media and entertainment companies have a familiar landscape depending consumer behavior dynamism, technology, competitive intensity, and industry reshaping. Match the results of the pandemic on business conditions as well as the workforce, an inflationary economy, as well as a charged social and political landscape, and company leaders are steering through unpredictable terrain. Here are five trends to view in ahead since the industry activly works to reframe its future.
1. Content distribution gets (more) complex
Purchase of new original content shows no manifestation of slowing even as move into 2022. Content articles are the fuel that drives consumer interest and engagement across platforms – streaming, broadcast and cable networks. How the content reaches consumers, however, ofttimes involves an intricate decision-making process.
The direct-to-consumer (D2C) pivot will the principal strategic priority for the industry in the coming year. Operators and investors alike are dedicated to subscriber growth and retention since the key performance indicators for services where switching costs for people are minimal. Despite their rapid growth over the past a couple of years, most D2C services operated by media companies remain unprofitable and consume cash, devouring resources from the overall enterprise.
The capital intensity linked to streaming highlights the significance for media companies to reap the financial benefits of the linear ecosystem. Whilst cord cutting gradually shrinks the universe of traditional video subscriptions, broadcast and cable networks remain cash flow engines. To prevent a dislocated unwinding from the legacy pay-TV environment and its particular valuable monthly subscriber fees and advertising revenues, network owners must still direct fresh content, including sports, with their linear channels to help keep viewers engaged.
That year ahead, operators (specially those devoid of the scale or capital resources to travel truly “all in” on streaming today) will be confronted with challenging decisions around programming their streaming platforms to operate a vehicle growth, whilst remaining profitable but structurally declining linear businesses to build cashflow. It is a tricky joggling act.
Working on these decisions will require sophisticated modeling and disciplined business planning that spans creative and executive priorities to own optimal combination of growth and financial outcomes.
2. Simplified and customized experiences take center stage
In 2022, consumers continuously look for unique experiences and ubiquitous entry to entertainment content. Firms that solve the discoverability puzzle and aggregate content in the more intuitive and accessible way will rise to the top.
Consumers expect effortless interactions during the entire end-to-end customer journey, from sign-up to usage and billing. Accordingly, we will see more companies participating in the streaming value chain. Network owners, broadband providers and connected TV manufacturers will probably be taking action to simplify, optimize and integrate layers and compatibility tools across platforms to improve the person experience.
Content discovery is starting to become increasingly a hardship on consumers as they bounce between streaming services seeking new series and old hits one of many avalanche of accessible programming. Tech-savvy companies that harness valuable viewership data to present customers many content they desire will enjoy an aggressive advantage. In 2022, streamers playing catch-up will refine their recommendation engines based on demonstrated subscriber preferences and usage history, and tailor their marketing – in-platform as well as over external channels – to generate consumers conscious of each of the viewing options.
Bundling could also improve the consumer experience. The scaled digital-native streamers supply a variety of integrated offerings to their video subscribers – shopping, gaming, devices, along with other digital services. Media companies with diversified businesses or innovative partnerships with organizations – including from the digital asset arena (e.g., non-fungible tokens, or NFTs) – will make an effort to create their own “flywheels” that provide a portfolio of offerings for their streaming subscribers, driving new sign-ups and adding stickiness on the D2C revenue model, extending living from the customer relationship.
An in-depth lineup of desirable programming is table stakes for your streaming game. Within an environment where consumers are juggling an evergrowing variety of services and switching prices are low, media companies should deliver an event that keeps subscribers connected and engaged.
3. Movie night will go back to the theatre
The end results from the pandemic about the movie business have already been severe. Cinema owners struggled to keep open as moviegoers stayed away due to virus concerns and limited accessibility to fresh film product. Even though the emergence with the Omicron COVID-19 variant is adding uncertainty, you’ll find signals pointing to a constructive path forward for that box office in 2022.
In 2021, 13 films grossed over $100 million as outlined by Box Office Mojo, down from over 30 in 2019. Nonetheless, results in 2021 indicated the perfect audience appetite for “blockbuster” features as reopening around the world gained steam, prompted to some extent by the distribution of effective vaccines. Looking ahead, a substantial slate of long-anticipated tentpole movies will help drive the recovery in theatre admissions.
A difference that will hold in 2022 may be the abbreviation with the exclusive theatrical window to approximately 45 days and, for many mid-size films, a day-and-date release approach that enables people to view new movies inside the theatre or in the home. Following a difficult series of negotiations between theatres and studios, the video industry offers aligned with an approach that preserves the attributes of the theatrical window while acknowledging view of streaming popularity.
The shorter first-run window will permit studios and theatres (and creative talent) to really benefit from successful major releases – namely the massive ticket sales that occur on opening weekend as well as the following many weeks, in addition to the ability for studios to leverage marketing spend for a film’s premiere into future distribution windows, specifically fast-following D2C availability.
4. NFTs have entered the media chat
Excitement is building around NFTs being a vehicle for media companies to expand engagement using content and IP and may even supply a future monetization model since the market matures.
Early adopters are purchasing NFTs linked to sports, art, collectibles plus more, acquiring one-of-a-kind digital assets which can be easily tradable and whose ownership and authenticity are recorded via blockchain technology.
To sign up the experience, media organizations are forming relationships with NFT technical specialists and marketplaces to formulate offerings that enable consumers to be involved in an entirely new way using their cartoon characters, movie and TV show scenes as well as other content. NFTs allow media industry players to make cross-platform consumer interactivity anchored in proven IP and to build new communities by extending the individual relationship into emerging digital areas.
In 2022, the press and entertainment industry will undertake lots of NFT innovation and experimentation. The economical return of such efforts is unclear; today, NFT projects in media and entertainment space are essentially marketing investments meant to power engagement and to access fans – particularly those active in crypto – desperate to deepen their connection to popular content. In the future, media companies could generate royalty income linked to secondary sales of NFTs… perhaps in transactions stuck just using activities taking place from the metaverse.
5. M&A remains a trendy item about the menu
Throughout the last Yr, the media and entertainment industry saw the largest players execute over a number of transactions – landscape-shifting megamergers, bolt-on acquisitions of smaller studios including properties located in international markets that leave localized content, targeted deals for niche IP assets that can be leveraged to make fresh programming, and innovative joint ventures designed to accelerate global streaming growth on the capital-efficient basis.
In 2022, the consolidation of studios and networks will keep as companies attempt to build this content, capabilities and scale had to battle the digital-native behemoths who really benefit from tremendous financial and operational advantages.
After deal headlines fade, management teams will face the heavy lift of integration, right-sizing and realigning front office operations, IT systems and corporate infrastructure to achieve ambitious efficiency goals. Cost savings realized through integration will fund future growth investment and boost profits, a vital objective because the industry transitions from your stable, high-margin linear world to some streaming ecosystem that drives less-profitable revenue (for the present time).
Robust conditions privately and public capital financial markets are enabling companies to sell non-core businesses and other corporate assets that no longer fit their evolving growth strategies or capital allocation priorities. Accordingly, asset divestitures would have been a key trend in 2022 as well. Activist investors will play a role in a few of the transactions, serving as another catalyst for change.
The press and entertainment industry has long been a whirlwind of strategic activity as companies build, renovate and dismantle business portfolios in response to market developments, and 2022 will be no different. These five trends indicate that the media market is poised for the next year of exciting change, as companies drive innovation, tackle new challenges and capture the possiblility to position themselves for growth.
For more info about market news you can check the best web page: this