Media

Context

The Media and Entertainment sector has been experiencing a radical transformation in the past 15 years, starting with the music business, then the publishing industry, and more recently the TV sector.

Technology advances and digitisation of content

Content is now digitally produced, delivered and consumed, thanks to the internet, fixed and wireless broadband, mobile devices, smart TVs, SVOD, and computing power.

Digital on-demand services and new platforms

New entrants are leveraging the existing telecom infrastructure, as well as offering OTT audio and video services on-demand through digital platforms.

New consumer patterns

Consumers expect convenient, personalised, and ubiquitous services. More and more people consume those services in a non-linear fashion across mobile and home devices.

Distribution fragmentation and discoverability issues

The multiplication of modes of distribution makes it tough to reach the audience, and promote and monetise content.

TMT convergence and intense competition

The sales, products, business model, and the very existence of traditional media companies are at risk. They face strong competition tech companies and telecom operators, who monetise digital content through advertising, on-demand, or subscriptions. Leading TMT players are actively pursuing acquisitions.

Challenges

Yet challenges are intensifying:

Emerging technologies

Emerging technologies such as 5G, autonomous vehicles, 4K & UHD, VR/AR, AI, and big data analytics will further enable the digitisation of media companies and offerings.

Gen Xers and Millennials

The emergence of the millennials and younger generations will accelerate the adoption of the digital media ecosystem.

New forms of content

Viewers have a shorter and shorter attention span, and short-form video and advertising attract the attention of producers.

vMVPDs and cord cutting

‘Cord cutters’ and ‘cord-nevers’ favour pay-TV services over the internet.

Evolution of advertising

Ad blockers are putting into question advertising revenues in digital media.

Globalisation

When leading TMT players go global by leveraging their online, mobile, and e-commerce platforms, they need to adapt to local regulations and consumer tastes.

Security and privacy issues

Recent security and privacy scandals have raised the concerns of consumers.

Regulatory changes

Media players will need to adjust to the upcoming or potential changes to regulatory changes such as GDPR or Net Neutrality.

Solutions

Digital Innovation

Although a threat, digital innovation also offers opportunities. Media companies should:

• Develop a digital strategy aligned with their corporate strategy

• Adapt their business model and source new revenue streams to add to their current ones

• Offer digital content and services, migrate their audience online, and engage their customers across channels

• Provide uniform services across platform and devices, both on the move and in the smart homes (ATAWAD)

• Develop a digital ecosystem and platform

• Develop capabilities in Artificial Intelligence, big data, real-time analytics, and automation

• Reinforce security, and respect privacy wishes of their customers

• Transform their organisation and culture

We can help you gauge the maturity of your content ecosystem, develop your digital and content strategy, shape a digital transformation programme aligned with your strategic objectives.

Organic Growth

Media companies should:

• Embrace the digital revolution and adapt their business strategy

• Analyse the market opportunities, the various players and their competitive moves

• Identify and leverage their most prized assets such as brand, customers and content

• Develop an innovative business model, and re-position themselves in their sector

• Put in place novel product, marketing, and content strategies, including for short-form of content

• Introduce digital services and products alongside their traditional business, and provide ubiquity and mobility

• Engage their audience online and across platforms

• Offer personalised content, recommendations, and targeted advertising

• Cross-fertilise data and content along their supply chain and monetise it

We can help you design your business model, define your commercial and marketing strategies, and create your business plans.

Organisation Review and Operations Improvement

Media companies need to:

• Define the organisation and the capabilities required to support their digital strategy and business model

• Create a digital platform

• Restructure their organisation

• Overhaul their value chain

• Acquire and deploy capabilities in AI, big data, real-time analytics, and automation

• Assimilate these technologies into their organisation

• Improve their operational effectiveness and restructure their cost base

• Develop new skills and nurture a digital culture

We can help you review your organisation, assess your operational investments, and plan and shape your business transformation.

Corporate Development

In search of shareholder value, companies competing in the media sector need to develop their corporate strategy and adjust their portfolio accordingly.

We can help you review your portfolio, assess the performance of your various business units, and define your corporate strategy.

Transactions

Strategic and financial investors make acquisitions and investments in the media sector in the pursuit of:

• Consolidation, such as in the production and cable industries

• TMT convergence, such as cable and telecom operators acquiring content and web media companies

• Ownership of a distribution platform by content owners

• Content acquisition by media firms

• Access to hardware and software technology and skills

• Discerning investments by PE firms, for example in broadcasting infrastructure

We assist both acquirers and vendors throughout the media ecosystem. We can help you define your M&A strategy, analyse your market and competition, identify and value your targets, perform your CDD, and plan the post-merger integration.

Regulation

The fragmentation of the TV and music audience consuming non-linear OTT services, as well as the TMT convergence and the ensuing trend of consolidation, are leading to a number of legal and commercial issues and debates:

• Funding of film production and local TV content

• Net neutrality

• Retransmission fees

• Cross-border access to audiovisual content

• Antitrust regulation

Government bodies need to adapt their policies, and media firms and financiers should anticipate the possible outcomes and adjust their corporate and investment strategies accordingly.

Working alongside regulation experts and lawyers, we can assist you with industry studies, economic modelling, and regulatory strategy in the context of licensing, policy formulation, and media transactions.

Projects

Corporate Development

• Global media company, industry appraisal

• Cable and digital pay-TV group, shareholder value profiling

Digital innovation and transactions

• Magazine publishers, review and valuation of the business plan of an electronic kiosk

• British Publisher, Study of the Digital Disruption in the Media Sector

• Management Consultancy, Media Industry Training

Performance Improvement

• TV broadcaster, programme budgeting

• British satellite broadcasting company, approach and plan for software implementation and system integration

Clients

We assist players across the media and entertainment industry:

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