2. Choose open or closed models
Audiences lead the way where media and entertainment companies must follow. As consumption patterns change, companies are on a relentless treadmill, rethinking the tools and capabilities they need to reach audiences and make money. As companies increasingly seek to rebalance the business model from advertising and wholesale distribution to “retail” revenue streams, direct-to-consumer models will take center stage.
Many traditional media companies will need to build marketing muscle around customer acquisition, engagement and retention. They will have to create frictionless experiences around their content and brands, while ensuring that the level of differentiation is sufficient to compel consumer payment. Even if media companies have these skills (many do not), they will need to evolve to compete. They will also need to understand the financial impacts of accelerating changes to content and monetization models, which will force tough, long-term decisions about investing in exclusives and originals to attract viewers, marketing their experiences and brands at scale to the right consumers, and generating revenue through subscriptions, licensing, advertising or some combination of each.
3. Expand the spotlight beyond Gen Z
Media and entertainment companies, have been laser-focused on Gen Z and Millennials, potentially at the risk of overlooking older generations. By 2020, for the first time in human history, the world’s population aged 65 and older will exceed the number of children under the age of five. Not only is this older age group large but they are affluent, tech-savvy, loyal and enjoy the most leisure time. It is a compelling mix.
To seize the opportunity media and entertainment companies must focus their attention (at least some of it) to understanding the unique features of this older demographic, creating products and services that appeal to their lifestyle and media consumption habits, reaching them with relevant marketing messages through the channels they trust.