Digitalisation will continue to accelerate across all segments of the media & entertainment sector, whether it be marketing services, publishing, radio, TV, film, music, the internet or gaming. This rapid change is putting pressure on companies to embrace new technologies, satisfy the ever demanding consumer, comply with new regulations and search for a position in a new digital value chain.
Non-digital revenue streams still account for the majority of global content consumption, meaning there is still a lot of room for disruption. New technologies and devices such as the Smartphone and IPTV will rapidly drive, and be driven by, new content consumption behaviours, as consumers increasingly demand more value from their content. They also want more control over what, when and how they consume that content.
As digitalisation becomes more pervasive and consumer behaviour changes, business models will evolve and new ones appear. The ad-funded revenue model capitalises on the evolving consumption behaviours by delivering advertising that is increasingly more targeted and relevant to the specific audience. The “freemium” model is ever more popular, where basic services are free but a premium is paid for advanced features.