The need for digital skill sets is now the norm among media and entertainment companies. To remain relevant, workers need to migrate up the value chain, reinventing themselves and continually improving their capabilities. — Bernama photo
KUCHING: Over a third or 34 per cent of media and entertainment (M&E) executives have admitted that their companies will no longer exist in five years’ time unless their business undergoes reinvention, according to a new EY survey.
The survey entitled ‘How are media and entertainment businesses reinventing in an age of transformation?’ analysed the views of more than 350 global industry executives to reveal the catalysts, strategies and actions that are shaping business transformation.
Faced with multiple evolving and disruptive forces, 50 per cent of executives said they can no longer rely on traditional business models if they are to succeed in this landscape.
The survey further highlighted a sense of inertia among many M&E businesses, with more than one in four (28 per cent) indicating they need to reinvigorate their business, but that they do not know what to prioritise.
“Media and entertainment companies remain upbeat about change. But with such diversity of business models and revenue streams, the starting point is often unclear,” EY Global Media & Entertainment Sector leader John Harrison said in a statement.
“The survey reveals that there is no single path to reinvention, but businesses can succeed by prioritising three key levers of change: operational excellence, innovation and upskilling talent. Embracing these ambitions can help them address short-term challenges and unlock long-term value creation.”
The survey also unearthed the three biggest drivers of change across M&E industry subsectors: responding to a shifting competitive landscape, which could lead to pressure on profitability; struggling to keep pace with technology as businesses evaluate digital innovations, such as artificial intelligence (AI) and 5G; and challenges associated with changing customer expectations, which is impacting the uptake of products and services.
Executives identified operating model change (41 per cent) and operational delivery and execution (39 per cent) as their top transformation priorities. Simplifying the enterprise emerged as a key theme in driving the next generation M&E operating model, with 55 per cent of all executives indicating that they want to streamline their business by consolidating internal segments.
The survey further revealed how businesses are using data to achieve operational change. Almost two-thirds (62 per cent) of respondents saw the increasing availability of data as an opportunity for transformation. Notably, 56 per cent of executives indicated that they prioritise building first-party data, compared with just 13 per cent who prioritise third-party sources.
“The evolving nature of revenue generation, combined with pressure to release capital to fund growth, is leading companies to reevaluate transformation goals and how they respond to shifting customer demands,” Harrison said.
“Making the most of data that resides across the enterprise is one of the most crucial tactics for realising positive change –particularly in helping businesses to compete by improving the customer experience.”
With four generations coexisting across the workforce – Boomers, Gen X, millennials and Gen Z – the survey highlighted the growing imperative to foster continuous learning.
A third (33 per cent) of all executives identified the need to close the talent gap and build skills as a driver of change, rising to 43 per cent and 42 per cent among publishing and advertising executives respectively. Nearly a quarter (24 per cent) saw the talent gap as a threat, while 30 per cent listed it among the biggest barriers to innovation.
“The need for digital skill sets is now the norm among media and entertainment companies, but changing technology continues to shift expectations. To remain relevant, workers need to migrate up the value chain, reinventing themselves and continually improving their capabilities,” Harrison said.