Most media, entertainment firms feel need to reinvent to stay relevant in technology era: EY
About 52 per cent executives from the media and entertainment sector in India believe they can no longer rely on traditional business models, if they are to remain future relevant, said the report titled "How are media and entertainment businesses reinventing in an age of transformation?"
Moreover, one third of them recognise upskilling of the existing workforce as the key to talent development to meet the changing industry demands, it added.
While, 21 per cent admit their businesses need to reinvigorate, but are unsure what actions to prioritise, said the report which is based on a survey of 350 industry leaders from around the world, which also includes 29 from India.
"While 52 per cent Indian M&E executives realised that their traditional business models were not reliable in the long run, yet just 24 per cent of Indian executives felt that their companies would cease to exist without innovation, demonstrating their confidence that traditional media will survive in the future," the report said.
It further said: "Many Indian executives cited the multiplicity of options available to invest in digital media as confusing, and one in five executives were unclear on how to prioritize their digital investments, particularly given the long break even periods required."
"The question of whether to focus on content production for immediate gains versus building direct to customer and platform/data capabilities was a key area of discussion," it added.
According to it, almost one in two Indian executives felt the pressure to "maximise short-term results as a barrier to innovation", which also reflected in just one in three Indian executives believing in upskilling of their existing workforce.
The survey also highlights "a sense of perplexity" among media and entertainment businesses, with 28 per cent indicating the need to reinvigorate their business, without thorough knowledge of what aspects to prioritise.
Commenting on it, EY India Media & Entertainment Leader, Partner Ashish Pherwani said: "With fast-paced transformations in business models and revenue streams, media and entertainment companies that otherwise are optimistic about change, are facing a challenge to determine a starting point.
"While there is no single path to reinvention, businesses are prioritizing direct to customer relationships, platformatic ad sales and community subscription models, to wade through the waves of technological disruption," he said. KRH MKJ