Binge watchers. Cord Cutters. Time Shifters. It’s clear, consumers now enjoy a wide range of content choices and media types and changes in content usage habits are creating dramatic disruptions in these markets. These changes require that companies be efficient, nimble and understand their customers.
The market opportunity is massive, with more than $2 trillion in annual global revenue at stake and technology investments surpassing $100 billion per year. There is no guarantee that the business model that is effective today will be relevant tomorrow as supply chains, product windows, and relationships change.
In response, we see leading companies strategically hedging their bets by making technology investments in three areas that provide insights, flexibility and an ability to pivot quickly based on changing market dynamics.
Investing in understanding the customer
The typical consumer may only be interested in a minute fraction of the vast amount of content available. To resolve this quandary and better satisfy consumer needs, companies are investing in the infrastructure needed to better understand who their customers are and what they want. They are designing more personalized user experiences that share the same look and feel across platforms and are offering curated content based on insight gained from analytics applied to big (customer) data. Companies are also investing in social integration and making it possible for consumers to interact with content in new ways to differentiate their offerings.
Investing in new or alternative business models
With digital disruption, we see changes in the traditional value chain of content producers, suppliers/distributors, and consumers. For example, HBO has created a direct to consumer subscription channel HBO Now. Other channel providers are offering exclusive content as a way to connect more closely with consumers. And some content creators are developing direct-to-consumer channels rather than depending on third parties to distribute their content. Still, others, are investing in infrastructure, such as cloud services, in order to drive down costs and increase nimbleness.
Many possible scenarios may play out at the still-evolving intersection of consumers, content, and technology. The eventual outcome will help some companies while hindering others. In order to be prepared for all possibilities, we see companies investing in technologies that increase flexibility, improve operating efficiency and reduce costs. For example, moving to a digital asset management system may ease the transition to a direct to consumer model or make new content partnerships possible, while implementing a mobile payment system may make it straightforward for customers to access content or services anytime, anywhere on mobile devices. Implementing Robotic Process Automation (RPA) for routine, frequently performed customer service tasks can speed response time, free agents to address more complex customer issues and reduce manpower requirements.
With marquee clients in every segment of media, information and entertainment, Virtusa has developed deep domain knowledge. This, coupled with our robust expertise in transformative digital technologies, represents a unique opportunity for organizations in these industries to leverage our capabilities to exceed the expectations of millennial consumers and succeed in the digital economy.