Multimedia

    With astonishing speed, entertainment, media and publishing have evolved into a highly dynamic industry, interconnected by the global digital platform in a manner that few people could even have conceived of 20 years ago. From books and media printed on paper, music on CDs, movies rented on DVD at the local Blockbuster and TV networks that forced the viewer to be in front of the screen at a given hour in order to watch a given show, the industry has changed dramatically into an always on, easy to time-shift, always with you on mobile platforms, customizable stream of news, entertainment, movies and music. Entertainment and media, as a broad sector, are unique in that revenues are generated by multiple methods. Primarily, these methods are outright purchase, such as the download of an ebook or the purchase of a movie theater ticket; subscription, such as cable TV fees or magazine subscriptions; and advertising fees.

  The implications of these changes are staggering. The business models upon which most entertainment companies have traditionally run are becoming obsolete.  Revenue from traditional advertising is in jeopardy while revenue from subscription-based business models is soaring. Online advertising is growing at supersonic speed. Television programming schedules are losing relevance while electronic program guides are becoming more and more vital. Rapid changes in viewing habits are occurring. Network TV news, radio news and newspapers all find that they have to compete fiercely against Internet-based options. A large portion of sports programming has migrated away from “free” broadcasts on TV and onto paid cable channels and pay-per-view systems, and many of the most popular TV shows are found on cable only.

    Recommendation software that learns the habits and tastes of consumers will evolve and will do a better job of pushing appropriate entertainment choices toward audiences. Amazon.com has long been a leader in the use of such software. Netflix has created an admirable package of its own. Count on continued, rapid changes. The revolution in new media continues, platforms will evolve quickly, consumers will obtain even greater control and competition will become even hotter. Meanwhile, the global audience is growing quickly, thanks to emerging middle classes in developing nations as well as the booming spread of cellphones and Internet access.

References:

(2013) "Introduction to the Entertainment & Media Industry"

© 2013, Plunkett Research, Ltd.