Sustaining digital leadership

Rethinking products and business models

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To stay ahead in the fast-changing digital world, media and entertainment (M&E) companies are reassessing the fundamentals of their business — from corporate strategy to products, distribution channels and pricing models.

Across the M&E landscape, a new race is afoot. As established M&E companies seek to become “born-again” by creating digital products and services, “born-digital” companies, and some social media companies, are extending their reach in traditional M&E sectors, such as advertising.

Whether born-again or born-digital, these companies are pursuing a common goal: to create sustainable business models in markets that are being transformed by mobile, social, cloud and big data analytics technologies.

As technology demolishes barriers to entry, creating an endless flow of new competitors and distribution options, M&E companies are continuously rethinking how they grow revenue and attract customers.

Our research reveals four imperatives for companies across all industry sectors: establishing your place in the digital ecosystem, rethinking products for digital audiences, optimizing market distribution and penetration, and reassessing revenue generation and pricing strategies.

EY - chart Adopting new business models amid rapid change


“As technologies, such as cloud/SaaS and mobile platforms lower barriers to entry, they create new opportunities — but also new and often non-traditional competitors.”

David Nichols
Americas IT
Transformation Practice Leader

“Diversifying into multiple pricing, revenue and distribution models, and then being prepared to shift emphasis based on differing customer preferences in each region, will be a long term critical success factor for M&E.”

Jean-Benoit Berty
EMEIA Technology, Media and
Telecommunications Market Leader

Key strategy highlights

  • Establish your place in the ecosystem. Re-evaluate strategies, market position and competitive strengths and consider making far-reaching changes to remain successful.
  • Decide how to acquire or build your digital portfolio and whether to divest non-core businesses.
  • Turn product innovation into a continuous process, using mobile, social, cloud and big data analytics technologies to hone products to customer preferences.
  • Incorporate unique content, personalization and anywhere/anytime access into products to attract paying customers.
  • Focus on fast-growing new channels, such as mobile streaming.
  • Exploit the power of “brandwidth” to extend your reach into new digital channels.
  • Diversify revenue sources (e.g., adding micropayments), although subscriptions and advertising may remain fundamental to growth.