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techsuch May 9, 2021 0 Comments

Media and Entertainment Industry in 2020: Trends & OutlookOver the past decade, the media and entertainment industry has been at thecusp of rapid transformation. Digital media emerged as an alternativedistribution medium, taking center stage across all sub-sectors like print,films, advertising, gaming, animation, radio and music. It has also proved tobe a core revenue generation platform, compelling several media companies toadopt digital strategies to survive the fiercely competitive market.Coupled with that is the ongoing video streaming war between giant playerslike Amazon and Netflix, and the unpredictability that it brings. Netflix lostUSD 17 billion in a single day last year! With the lines between paid, owned,and earned media getting blurred, more players are expected to jump instreaming; and the market is expected to reach USD 6,709.4 billion by 2030.Interestingly, all of this has vested more power in the hands of the customerand prioritising customer retention will be the most significant trend for2020. Companies looking to increase their profits are turning to innovativetactics, including AI, AR/VR, and phygital to keep their customers engaged.Here’s a look at some of those trends expected to transform the media andentertainment industry in 2020 and beyond:## AI for Personalization and as a ServiceOne of the most transformative tech solutions in the past few years, AI hasbeen used in numerous ways to improve customer experience and streamlinebusiness operations. This will continue in 2020 where media companies willcontinue working alongside AIs for personalized content recommendations andeffective advertisements.Given the rising customer expectations, and demand for personalized content inrecent years, media enterprises are increasingly under pressure from a widerange of competitors. Top players have moved past from just suggesting thecontent customers might like to creating content customized according to theirchoices.> Reports show that 40% of Millennials and Gen-Z’ers are willing to pay for> personalization done well.>> SourceUsing AI, and data based on user behavior patterns, media companies are ableto personalize what ads to show to garner user interests. While the scope ofthis was for larger groups in the past, starting 2020 this will zero in formore specific buyer personas, and eventually be targeted for individuals!> Forbes is using an AI bot named Bertie, which recommends article topics for> contributors based on their previous output, headlines based on the> sentiment of their pieces, and images too.Leveraging AI makes the process of creating new content more efficient forbusinesses, publications and online creators. Creation of new ads, movietrailers can be done, with AI streamlining all pre- and post-productionprocesses. Big data and machine learning are two other technologies aiding AIin its mission of bringing enterprises closer to customers.Apart from that, 2020 will also see a growing pool of providers like Amazon,Google and Microsoft, start offering more tailored applications and servicesfor specific organizational tasks. Therefore designing and deploying their ownAI-based systems will also remain an expensive proposition for most mediacompanies this year.## Virtual and Augmented RealitiesIn 2017, The Global Entertainment and Media outlook forecast predicted that by2020, VR content revenue would increase to $5 billion, making it one of thehottest trends in the media and entertainment industry. And even though theuse of AR and VR in the media and entertainment is relatively new, enterprisesare rapidly adopting these alternate realities to meet the growing customerdemands.VR has an array of applicability in the entertainment industry. In gaming, 3-Dgames are developed with the help of VR and biosensors—for the positioning ofplayers. It also helps in creating virtual museums, galleries, theatre, andtheme parks.AR has been trending in gaming; we all know how much popularity Pokémon GOgained in no time.> Disney’s app—Play Disney Parks—also enables visitors to play games based on> Disney themes while standing in the queues. Besides that, AR enables real-> time 360° coverage in news reporting in order to give a satisfying user> experience.The coming year holds very exciting opportunities for AR and VR, bringing thepossibilities of allowing a person to view three-dimensional images, thatappear as life-sized to them.## Online Streaming and Smart MediaApart from leading players like Netflix and Amazon, several others like Apple,Disney, HBO Max and WarnerMedia are joining the streaming domain, making iteven more complex. There’s an increasing competition, coupled with the need tomeet customer expectations. However on the bright side, the craze ofSubscription Video On Demand (SVOD) is also rising.Enterprises are leaving no stone unturned to have an edge over others,leveraging technologies like AI, machine learning, alternate realities to uptheir game. 5G is another trend in demand because of its high connectivity andfaster data transfer, that enables a smooth, seamless user experience for VR.It also obviates the need for wifi network for video streaming.Then there’s also the need to create smart media, content that users caninteract with.> Netflix came up with Black Mirror: Bandersnatch last year, that received> wide appreciation because it enabled users to interact and make decisions to> influence the direction of the further story.2020 opens the door for more such interactive content by the media enterprisesthat not only entertain viewers but also influence it with their decisionmaking.## Focus on the EnterpriseWhile media enterprises are rapidly focusing on the tech side of the digitaltransformation, they often end up spending more than their profits,particularly, to stay ahead of the market competition. While that might beimportant up to an extent, there’s also the other side that needs moreattention. That you need to start focusing on building intelligententerprises—not just cool and exciting media arms.2020 is the time when you should start making investments in tools andtechnology that ensure higher efficiencies, lower spending and more efficientwork processes. Processes that empower great publishing experiences for youreditors should be on your to-do list. Continuous improvements should become apart of your strategy to ensure that the ROI from your tech investments aremeasurable and ideally increasing.Digital transformation in media and entertainment has brought tremendousinnovation to the consumer, and it is important that you apply the same effortto the back office to make sure your operations can support growth as well asscale profitably.## Decentralized Distribution and Data PrivacyLast few years saw an unprecedented rise in the number of fake news andvideos, while also risking the misuse of customer data. In 2020, mediacompanies are expected to exercise more control over their data, use AIalgorithms to detect and block deepfakes, as well as trace their creators tomake data privacy and security a top priority.> Deloitte’s most recent Digital Media Trends Survey shows that consumers> still fear identity theft, financial loss, and unauthorized use of sensitive> data—largely because many have experienced these threats directly. They are> increasingly demanding the same level of control over their personal data> that they enjoy in crafting their home entertainment experience.Blockchain has the potential to completely transform the industry, as iteliminates the need for an intermediary from entertainment and mediadistribution. With direct access to the consumers, media companies are in amuch better place to distribute original content, while also ensuringtransparency and traceability.Apart from these, there are a few other trends that would have a significantimpact on the media and entertainment industry. Wide adoption of voice media,re-innovating how radio is used, leveraging AI based advertisements toinfluence decisions are some prominent ones.Overall this year is going to be crucial for media-marketers, and to survivethe rapidly changing market conditions, they need to focus both on what theydeliver, and how they deliver it. Media companies need to to regroup and getserious about using technology not only to cater to their fan bases, but tomake smarter connections while driving greater profitability into thebusiness.Looking to enable digital transformations within your media enterprise? Dropus a line, and our team will get in touch.Or if are you looking to adopt digital transformation practices for yourtravel enterprise, here’s a round up of 2020’s biggest trends for travel.

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