Digitization: Media giants see themselves at risk
More than a third of executives at global media and entertainment companies believe their companies’ survival is at risk over the next five years. As new business models emerge in the media sector, it has become essential to abandon old models and focus more on innovation, according to a study by EY.
Dispensing with old business models and being open to innovation is essential for the future of media companies. (Image: Pixabay)
"As with many other industries, most people in the media sector are aware that innovation is needed. However, too little is still happening here, which is mainly due to the fact that most companies are not yet under enough pressure. There is no silver bullet for adapting to digitalization. What is needed is not a quick solution that emerges in a short brainstorming session, but real room for innovation that can really deviate from the norm," explains digitalization expert Frank Eilers in an interview with the news portal Pressetext.
EY analysts interviewed more than 350 executives from global media companies for the study. Half of those surveyed are of the opinion that media companies will not be able to survive with traditional business models in the future. 28 percent want to adapt their own company to digitalization, but do not yet have a concrete plan for what measures they need to take.
Training boys important
"With the high diversity of revenue sources and business models, many don't know where to start," says John Harrison, Head of Global Media & Entertainment at EY. More than half (55 percent) of the managers surveyed want to simplify their company structure and consolidate internal departments. 56 percent see the increased availability of data as a result of digitalization as particularly important. In order to create innovations, it is important for companies to collect their own data.
According to the study, the training of young talent is a particular challenge. Because the workforce of modern companies is made up of different generations, it is particularly important for 30 percent of respondents to close the skills gap between them in order to promote innovation. (pte)
