Technology disruption is an irrepressible force in the economy. Few industries have undergone the type of dynamic evolution currently at play within the media business. There are new technologies such as on-demand and cloud-based services and new big data algorithms and analytic techniques; new delivery systems, including mobile; and new consumption patterns, among them social media adoption, cord cutting, cord thinning, and a gravitation to the simple and streamlined offers of over-the-top (OTT) providers.
All of these trends are forcing players in all media sectors to re-evaluate their core value propositions and strategies. Digital is changing how and where people consume and create content, and it is causing advertisers to move a growing percentage of their advertising spend to digital and mobile platforms. Think of Twitter, YouTube, Hulu, and Netflix, all of which are offering a whole new way to experience media.
Such disruptions are causing media revenues to shift rapidly from traditional offerings toward digital solutions.
[It’s] a much more volatile environment, and so you need to be highly adaptive. What does adaptive really mean? It means that you need to manage your cost base to keep it as lean as possible, but you need also to manage the structural transformation....In order to win, you need to be conservative on the one side, but also aggressive on the other side.
What are some of the best bets for media companies looking to venture into digital? Take a look at our list of promising sectors for each of six key media categories.
BCG Digital Ventures is a team of innovators, operators, entrepreneurs, and investors that works with businesses to reimagine how people experience products and services. Learn more about how you can disrupt markets, create new market opportunities, and uncover new sources of competitive advantage.
Read MoreDigital disruption is rendering traditional video distribution models obsolete. Companies that do not transform their IT will soon find themselves struggling to compete.
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