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Adapting to the “new normal”
As companies press ahead with theirdigital transformation initiatives, thereare strong signs that a fully-fledged“new normal” is now emerging. It is aworld where the formerly distinct rolesof content, services and applications inthe overall consumer experience areincreasingly indivisible. A world drivenby new devices and mass technology.These dynamics are increasinglyapparent across all segments. But,given the sharp variations betweendifferent geographies and industrysectors, it is clear that the overallindustry migration to the new worldwill take some time. “Classic media”will live on while the world of “broad-band media” fully establishes itself.For companies, this is not simply aone-off transition from analog todigital; it’s a new business model.The move to delivering personalizeddigital services to each consumerdoes not mean M&E will stop being amass-driven industry. The change infocus from the mass-market audienceto the audience of one actuallyinvolves a shift from mass media tomass technology—with the source of companies’ economies of scale movingto technology platforms, as a way tomanage the costs and impacts of frag-mentation and operational complexity.
Harnessing the “3D’s”
On their transformational journeys,M&E companies need to cross thefrontier from early-stage industryresponses to more sustainable andprofitable business operations inthe new digital ecosystem. To takethis step, companies must considerharnessing three fundamental driversthat we have termed the “3D’s”: theDigital Consumer, Digital Monetization,and Digital Supply Chain.Today’s consumers expect to chooseand consume the content they want,in the way they want, wherever andwhenever they want. This means thateach individual is no longer anaggregation of a separate reader,viewer and listener, but a single entitychoosing and consuming contentexperiences across multiple platforms.This individual’s behaviors add up tothe “DNA” of the digital consumer.The second “D”—Digital Monetiza-tion—remains a major challenge,and an area of uncertainty for manyplayers. What is clear is that M&Ecompanies will run a diverse portfolioof revenue models, thereby capturingmultiple revenue streams, but alsoobliging themselves to face furtheroperational complexity.
The third “D”—Digital Supply Chain—underpins and empowers the othertwo, thus enabling the M&E companyto achieve its ultimate imperative:maximizing the return on investmentin content and operations. By support-ing and enabling multiplatform
However, M&E companies know their industry remainsin a state of flux that will continue for the foreseeablefuture. To keep pace amid this ongoing andsweeping change, while also building sustainable andprofitable businesses for the future, companies needunprecedented operational agility. Yet many are stillless than halfway along their transformation journey.Those that fail to reach the ultimate destination of sustainable profitability are likely to face extinction.But for those that win this race, the prize is biggerthan ever before.
Accenture’s Global Media and Entertainment High Performance Study 2011