TV and video business is highly influential and is characterized by multiple drivers: digitalization, new market proposals, and disruption by digital players guarantee rapid change.
Moreover, consumer expectations and usage practices are changing immediately in the age of video-on-demand and mobile communications expenditure.
The media and entertainment industries face significant changes as technological innovations, shifting consumer behavior, and new business models reshape the industry. The video entertainment sector, which spans these industries, exemplifies how the traditional linear value chain transforms as platform-based business models play more prominent mediation roles. Consequently, it has been recognized that three essential interrogations will define the future of the media and entertainment sectors:
- Who will come out on the head as the video market mutates?
- Will people have content or only subscribe to video assistance?
- Will advertising companies maintain control of media marketing?
Let us ascertain the critical factors and requisite conditions that will determine these questions and the future shape of the telecommunications, media, and entertainment industries.
VoD and Digital Programs as Game Changers
Traditional media theories are a thing of history; the whole industry is experiencing a fundamental change: streaming settings are no longer just for consuming films and TV programs. Alternatively, they are funding the production and licensing of globally prosperous content and are thus in direct competition with the established TV and video industry. Simultaneously, broadcasters and media companies launch their on-demand contributions, and global content producers establish their streaming services.
Also, on-demand video has thoroughly changed consumer behavior: customers frequently expect relevant and engaging TV and video content that can be obtained anytime, anywhere, and in the format that best suits their immediate needs.
All these factors already affect the market, but what will the future of TV and video look like in a few years? Will global platform giants like Netflix, Amazon, Apple, and Google dominate the market? Or will the TV and video industry expand into a diverse ecosystem shaped by cooperation, in which traditional providers also possess a role to play? Who has a way to the customer, and who can deliver the best benefit of monetization opportunities?
The quickly changing market landscape and continuous diversification make it defying to make long-term forecasts.
Digitalization, Personalized Advertising, & Less Regulation
For the study, we distinguished additional factors that will circumscribe the principal future developments in TV and video production in the foreseeable expectation:
Digitalization is essentially changing production processes and the combination of content. For example, All-IP is becoming the standard for TV and video, and fast fiber-optic networks and 5G enable more adaptable and mobile consumption of media content ever. In addition, new, intelligent guidance functionalities are being conducted based on artificial intelligence and analytics to approach consumers in a targeted approach.
Video-on-demand is gaining territory on a broad front. Furthermore, traditional, linear television asserts its role – particularly in popular live content like games and significant events.
TV and video advertising is accommodating to new formats and relying more on the personalization of advertising content. The interpretation of user data makes it feasible to optimize ads and content, increase the benefit for potential customers, and ultimately win them over as consumers. However, the extent to which this will happen depends very much on the willingness of consumers.
Market administration in the media industry will be more common than it is today. In particular, in online and mobile services, this will decrease the regulatory pressure on all market participants, especially traditional media companies. Network neutrality prevails.
What would be an experience in which some global digital platform companies have succeeded national broadcasters? Take a peek at a potential future scenario for the TV and video industry.
As diverse as the four future TV and video industry scenarios by 2030 may develop, some widespread implications are appropriate for all market associates. Therefore, they should reflect these in their strategic outlining.
Broadcasters and content producers can no higher rely on their current market position. To ensure their business models and future revenue streams, they must present themselves to cooperation and alliances, including primary competitors. Joint production, joint distribution models, and even collaborative platforms are proper methods of countering the threat from digital platform providers like Apple, Netflix, Amazon, or Google.
Beyond this, grounded broadcasters and content producers must continually invest in digital competence because technology has become a core component of their business methods. What is essential for them is that they are uniformly engaging to both digital expertise and creative minds. Bill Gates addressed over 20 years ago will still implement in the future: “Content is King.” However, first-class technological capabilities are necessary to create engaging content in a future shaped by digitalization and eventually reach the consumer with it.