Resiliency, closer consumer connections become M&E priorities | Media Analysis | Business | News | Rapid TV News
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
As the media and entertainment (M&E) industry comes to terms with the post-Covid world, nearly half of executives surveyed by EY say that increasing resilience is their biggest post-pandemic priority and the same percentage worry that without reinvention their companies would cease to exist in five years.
EY Resilient 5 May 2021 2
EY’s study, Building A Resilient Media And Entertainment Enterprise | EY - US, analysed the views of more than 100 global industry executives to reveal how recent events have impacted their businesses.

The report stated bluntly that Covid-19 was a wake-up call for the M&E industry. Executives saw the urgent need to accelerate transformation. More than half (52%) of M&E executives said the pandemic permanently changed how their businesses operate.

M&E executives were found to be building resilient businesses and reframing their futures by focusing on four key areas: simplifying operations and functions; innovating business models; securing the enterprise; and reimagining the future of work. Overall, just over two-fifths (41%) of M&E executives cited simplifying the enterprise as a business priority, specifically, consolidation of business units, departments or functions (52%) and outsourcing back-office activities (43%). The survey also showed M&E executives as also being focused on business model innovation, with 48% saying they can no longer rely on traditional industry business models. Developing new distribution models is a key innovation priority, with half of M&E executives saying they are committed to exploiting new paths to reach the end customer.

Broadcast and cable network owners, for example, were found to be fully committed to the direct-to-consumer (DTC) model, shifting the industry ecosystem structure from wholesale to retail, while film studios were proactively shrinking the theatrical window to get movies onto streaming services more quickly, fuelling DTC subscriber growth and achieving efficiency in marketing spend for new releases. Yet this also meant this was the first time that M&E firms had a direct relationship with their customers. They were beginning to understand that they will have to continue to simplify, reinvent, secure and future-proof their businesses to retain customers and stand the test of time.

For 61% of mid-size M&E companies, a lack of investment capital is one of the biggest inhibitors to growth and transformation. In the sports and live events subsector, 53% of respondents indicate their businesses face enduring change following the pandemic.

For media and entertainment companies, building more resilient enterprises requires leadership teams to address the operational and strategic changes occurring in the industry, noted John Harrison, EY Americas Media & Entertainment sector leader.

“For media and entertainment companies, building more resilient enterprises requires rewriting corporate DNA…Reinventing an organisation’s internal processes — making them fit-for-purpose and future-proofed — must occur within the context of re-examining the entire business model,” he said commenting on the Building A Resilient Media And Entertainment Enterprise | EY - US report.  

“Reinventing an organisation’s internal processes — making them fit-for-purpose and future-proofed — must occur within the context of re-examining the entire business model. Covid-19 has accelerated the pace of long-running changes taking place across the M&E industry, including cord-cutting, the explosion of streaming and the non-stop growth of targeted digital advertising. For many of these companies, this is the first time they have a direct relationship with their customers. They understand that they will have to continue to simplify, reinvent, secure and future-proof their businesses to retain customers and stand the test of time.”

Yet as building resilience and rewriting corporate DNA are mission critical, and increasingly important, the study also flagged that questions remain around where to begin this process. Indeed, 42% of executives, up from 25% a year ago, admitted they were uncertain about what actions to prioritise to realise their business transformation agendas.