As it were: In the beginning…
Years ago, we used to buy newspapers. Over time, things took a different shape- we can now open a news app on our mobile devices, tablet and stream our favourite TV series on a smart TV instead of renting DVD as we used to.
Digital transformation is quite a diversified concept, with specifications ranging from one industry to the other. One common place where digital transformation has gained ground in the last few years is the media industry. While there are certain trends in the news markets and all sorts, digital transformation is contributing a lot to the growth of the industry in its entirety. The truth is, the industry has suffered radical fluctuation in recent years, but the introduction of digital transformation has caused some significant stability. Hence the current stance which is not whether digital transformation would happen but how concerned companies will embrace it.
Whatever you are- a movie fan, News watcher, TV binge-watcher or some video game, as long as you are using some digital device or sort, it is evident that new inspiring technologies have rigorously altered our consumption, connection and communication. Little wonder the entertainment industry is recently being turned to stand on its head through and with technology.
With digital transformation, the media space is effortlessly striving to leverage every bit of opportunity presented by new entries into the market, capturing the imaginations of the consumers, digital video, among others. The big guns in the industry see the window of opportunity to secure and maintain their position as it is being narrowed down, with an urgent need for more rapid decision making. That way, they can still be competitive and relevant in this magnitude of digital-based business methodologies and the associated capabilities.
Fast forward to this new age, what we have now is changing consumer behaviour and expectations, which is bound by the thirst of younger generations. In other words, demographics play a huge role in this transformation. For instance, the arrival of the millennials is significantly responsible for the creation of better technology services in the media. Besides, their keenness to consume content on a global basis is also worthy of consideration. And of course, since their expectations are woven around instant gratification, the need for digitally-inclined and responsive concepts become highly imperative.
“Look at the customer first because they’re going to tell you what you need. They’re going to decide the experience they want. Most media companies have insights divisions but are they going far enough? Are they gathering all the information they have about the customer?”
– David Ingham (Media & Entertainment Industry Consultant)
Areas of Application
In a way, the types of product (content) being produced or created, where the consumption is taking place and even the creator of such wonders like we see in Hollywood today has become a Wild West, with more expectations of new changes. Meanwhile, some of the many most significant transformations making waves in the media industry are:
- According to research, very simultaneously, people watch video clips and other content on their phones while they watch movies on their TVs and computers. This has further triggered the understanding of media companies that there is a need to leverage such situation by making viewers share with the world, adopting branded content and hashtags for a much broader reach. Marketers and writers are therefore transcending sole thinking about what would produce a fantastic scene; they instead think what would be nice as a GIF, what post would be gain many on Facebook, and how to better engage their audience or viewers, among many others.
- Artificial Intelligence, AI is Becoming more creative: Research says about $300-350 million was allocated for spending on AI in 2015 and the projection for 2025 is even more ridiculous at $30 billion. The creative process as a whole is being changed with AI, especially in this new generation of computer-man collaboration. The digital transformation is being used with AI for movies, language processing, speech recognition and even deep learning, to mention a few of the ways AI is impacting the creativity of the media world.
- Smarter advertising: Thanks to deep analytics which is reasonably possible with machine learning and the inexhaustible opportunities that abound with AI and augmented reality, the advertising game has become smarter than it used to be. This is not some traditional product placements. It is instead pointing fingers at how soon and possible it would be to order the jacket of your favourite television presenter by simply clicking on the screen when displayed. Moreover, marketing agencies will now be able to take advantage of big data to switch out specific placements of products and use the ones their consumers will most likely buy. Isn’t that entertaining? It is true that digital transformation in the media industry is majorly concentrated on money and marketing, but also, even more, they focus on engagement and users’ experience.
Other areas of application which we can relate with are More curated content and expectations of virtual and mixed reality.
In conclusion, digital transformation is a necessary disruption, which is interestingly improving many aspects of our daily lives per time. Media companies, therefore, have just one duty – to reinvent whatever models they are adapting to stay relevant and up-to-date. Though the idea of digital transformation is just getting started, it should be given adequate thoughts and concentration in the media industry even as there are yet many exploits to make within the circle. It is also critical that media companies cultivate the habit of building an experimenting culture, and to take the best of the early days of data-driven marketing, the media sector is poised to consider digital transformation even more.