- COVID-19 was the time for media, entertainment and platform companies to step up their mission to inform, educate and entertain.
- The current environment has accelerated the trends that were in sight a few years ago.
- It is imperative to revisit long-held assumptions, rebuild, redesign and redefine priorities to create a more reliable, prosperous, resilient and fairer industry.
The first half of 2020 put the spotlight on the information and entertainment business. The world has turned to media, entertainment and platform companies and the industry has been challenged. Digital consumption is on the rise, advertising is on the decline. Traditional media are under pressure, confidence is under siege. Teams collaborate remotely, companies collaborate sporadically. Is the future “business as usual” or can this be a catalyst for the industry to reset and rebuild better?
A common refrain in recent conversations with industry executives is that existing trends have accelerated, with three years of changes in three months. To test this, let’s go back to this piece of January 2016, written by the CEO of Accenture, the late Pierre Nanterme.
“We are seeing the Fourth Industrial Revolution emerge in a series of waves: the digital consumer, which benefits from more interactive and personalized experiences thanks to SMAC technologies (social, mobile, analytics and cloud); the digital enterprise, which leverages SMAC technologies to optimize the cost of business functions and transform business collaboration for increased productivity; and the emergence digital operations vague. ”He continues:“ As far as society is concerned, the implications of the Fourth Industrial Revolution are profound – from save lives … for better environmental management. ”
Each of these trends clearly resonates today. But to what extent can they be more than an acceleration, and become a turning point?
As COVID-19 has shaped 2020, digital consumers around the world have embraced the services on offer. The average time spent with digital media in 2020 is expected to increase by 11.9% in the United States, 11.1% in Germany and 9.5% in China, compared to 2019.
Large digital companies have quickly adapted to remote working and remote production and are finding value that was previously hidden. Ree Drummond anime Discovery Channel The pioneer woman of the House. Discovery found he was able to shoot remote episodes of the show at 10-20% of the time. typical cost, while the new authenticity of digital content delivered straight from the presenter’s home to yours resonates and blurs the lines with creators on social media platforms.
The move to digital and direct-to-consumer sales, along with financial pressures on the industry, make a deeper scrutiny of investments and results inevitable. In one ISBA report of May 2020, 15 advertisers used 300 separate supply chains to reach 12 publishers, and of total advertiser spend, the publisher received only 51%.
The ecosystem will have to scrutinize where the value of 49% is.
For those who measure, analyze and optimize, 2020 creates a natural experience that allows them to pause, reassess and rebuild marketing strategies, as some categories of media and entertainment hibernate and others flourish. , and marketing technology enables micro-targeting, deeper digital relationships and a focus on lifelong value.
For society, the deadly implications of disinformation during the pandemic and the long-awaited campaign of action against racism have intensified the need to deliberately build consumer confidence and a brand-safe environment for advertisers. Confidence will require progress in policy, transparency and collaboration through initiatives such as the Global Alliance for Responsible Media (GARM), which seeks to demonetize harmful content.
It will leverage a reinvented execution capability, where digital operations use applied intelligence and human oversight to keep pace with the growth in volume and continued innovation of malicious actors, disinformation and content. harmful to increasingly sophisticated cyber threats. And, it will take relentless action to reflect the diversity of society. Marian Wright Edelman, the American children’s rights activist wrote: “you can’t be what you can’t see” and, while 60% of the American population today is white, minorities represent only 13% of filmmakers, 22% of scripted actors on television and 10% of scriptwriters.
The imperative to ensure better stewardship is not isolated to COVID-19 or any other problem. The United Nations Global Compact (UNGC) asserted that “the impact of the pandemic has clearly demonstrated that failure to cope with one crisis increases the scale and intensity of others”.
While 77% of media CEOs recognize The critical role that business could play in achieving the 17 UN Sustainable Development Goals, only 13% of media CEOs believe businesses actually play this role. At the same time, 59% of consumers surveyed in May 2020 said they would avoid brands that are not making progress against goals that impact our company and our planet.
An analysis by the World Economic Forum and Accenture of more than 2,500 companies found that management teams (who, on average, earn 3.1% higher operating profits for their company) exhibit five elements of responsible management.
Now is the time for media, entertainment and platform companies to step up their mission to inform, educate and entertain. The current environment has undoubtedly accelerated the trends that were in sight four years ago. But more than that, what has become more important is the imperative to revisit long-held assumptions, rebuild, redesign and re-prioritize to create a more reliable, prosperous, resilient and fairer industry.
This will widen the gap between those who have embraced digital transformation and social responsibility and those who have not. Equally important, it is a test of leadership both at the industry level, where collective responsibility and accountability will give the industry a stronger footing, and at the individual level, where the model of industry leaders evolves to encompass agility, impact, accountability and authenticity.
The World Economic Forum and Accenture recently published the second in a series of articles examining changes in the media, entertainment and culture industry. “Build Back Better – An Action Plan for the Media, Entertainment and Culture Industry»Focuses on rebuilding better, through four themes:
1. Create a stronger media ecosystem through the creation, distribution and consumption of content
2. Accelerate digital transformation to stimulate innovation
3. Adapting the workforce and working methods to support the next phase of industry growth
4. Support responsible businesses through the Global Sustainable Development Goals (SDGs)