The media and entertainment landscape is changing dramatically as digital is altering not only how content is distributed and consumed, but also the very nature of the content itself. As consumers become more digital, their media and entertainment consumption and purchase habits have also evolved from multi-tasking while watching TV to accessing information viamultiple devices. This brings on both challenges and opportunities around distribution and consumption of digital content for media and entertainment companies.
These changes and the emergence of new business models are having knock-on effects across the value chain. The result is that operators in this sector are faced with declining revenues from their traditional activities, competition from new players and the saturation of their networks due to the explosion of content.
In this environment, incumbents are having to work harder to maintain their positionsand think laterally about how to evolve their models; while new players, without the baggage or infrastructure of mature businesses, are seeing opportunities to disrupt media markets.
And with the expansion of media options, advertisers are changing their traditional buying patterns and practices. As they look to spread their marketing dollars across different platforms, and demand more rigorous ROI metrics, advertisers have significantly different needs today compared to those of the past.
In this environment, media sales and marketing efforts must be able to focus on the highest-potential customers, assess needs, and communicate clear, compellingand differentiated value propositions. To do this, senior media and entertainment executives face a number of key challenges:
Vision and strategy: how will innovation change current business models?
Product and service development: how will the existing product portfolio evolve and be extended through data-driven business models? Which additional services can be offered?
Marketing effectiveness: what steps do we need to take to fully integrate ROI assessment tools and annual account management processes into our sales and marketing efforts?
Account management: how can we protect and strengthen our relationships with our highest-opportunity existing accounts? Which accounts require more cost-efficient selling coverage via self-service models?
Sales capabilities: how can we develop and implement strong and strategic selling capabilities to provide bundled offerings and solutions to key accounts?
Digital: how do we build market leadership in our digital offerings and implement highly credible sales and marketing models to promote our digital solutions?
Partner strategy: which partners are required to support future business models? How do these fit together to sustain a successful ecosystem?
Organisational design: managing the transformation towards a consumer-centric company, fostering co-operation and co-ordination between relevant divisions and organisations.
Technology infrastructure: identifying and selecting the necessary platforms and solutions to enable media ecosystems.
In an industry flooded with innovative business models, consolidation, and convergence, today’s media and entertainment companies require a consumer-centric approach to compete.
Henderton has advised a range of organisations operating in the media and entertainment sectors, and can help with:
Growth strategy: develop growth strategies based on assessment of customer needs and market opportunity, and identify quick-win and longer-term sales and profit growth opportunities.
Bolt-on strategy and market mapping: supporting businesses’ M&A strategies, focusing on identifying targets with complementary capabilities to expand service offerings.
Customer experience: designing a differentiating customer experience aligned with the brand values, through customer journeys which span digital as well as traditional touchpoints.
Customer management: protecting existing customer bases by identifying, measuring and addressing root causes of churn and developing retention campaigns.
Revenue management: acquiring more and increasing revenues from the existing base, by redesigning product portfolios based on customer-segment trends.
Marketing effectiveness: improving return on commercial investment by redesigning branding and promotional activities.
Sales structure: optimise sales force size and structure decisions, including the assessment of different options for organising traditional and digital sales efforts.
Operating model: helping to eliminate complexity from product, process and technology portfolios by separating products and processes which contribute value from those which are primarily cost drivers.
Performance monitoring: identify KPIs appropriate for the new media selling model, and design and implement performance reports and dashboards.
If you would liketo learn more about our experience within the media industry, please contact our practice. We would be happy to discuss our insights regarding key challenges, critical success factors and approaches.
Our projects for media and entertainment clients include:
Marketing effectiveness: generated scenarios and options for the marketing channel mix to achieve budgeted targets for new customer acquisition and subscription revenues.
Sales structure: designed the structure, responsibilities, geographic coverage and compensation principles for the sales team for a new service line.
Performance monitoring: designed a dashboard for a new service line with both financial and non-financial KPIs covering the end-to-end customer journey.
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