Disruption is the change that occurs when new digital technologies and business models affect the value proposition of existing goods and services. It is an effect that changes the fundamental expectations and behaviors in a culture, market, industry, or process that is caused by, or expressed through, digital capabilities, channels, or assets. On the other hand, for those who are unaware of digital transformation, it can be defined as the process of embracing changes toward a company by adapting or strategizing the use of digital technologies. Prominent digital innovations challenge the existence of dominant firms, and cause severe systemic effects in industries and markets. The impact of digital disruption is being seen in nearly every business sector, but far more in the media and entertainment sector.
All the disruption and transformation takes place on an industry-wide scale, forcing a significant shift in profitability from one prevailing business model to another. The media industry has already been transformed by several waves of digitization. For those media companies that want to not only stay relevant but to lead, experimentation must play a role in their strategy. The digitization of the media industry has been driven by the changing consumer behavior and expectations, especially among younger generations who demand instant access to content, anytime, anywhere. Organizations need to embrace digital disruption to gain a competitive advantage. When an industry experiences digital disruption, it typically signals that consumer needs are shifting. Considering the rapid evolution of technologies like artificial intelligence, machine learning, the internet of things, and virtual reality, it is no surprise that the phrase digital disruption is everywhere. As the digital transformation of the media industry puts greater power in the consumer’s hands, media companies are looking toward scalable, cloud-based solutions to help them adapt. The media industry is in the midst of a revolution and a fundamental shift of power is affecting virtually every media organization. Content consumption across media channels, devices, and demographics is on the rise. Today’s viewer is a multi-tasker, simultaneously watching TV, and discussing the program via social media or a smartphone app. Practically speaking, gone are the days of purchasing a bundled phone/internet/TV service and when people paid for 300 channels. Today’s consumer has so many choices of where, when, and how to consume content; companies are compelled to put strategies in place that put the customer first, and create an exceptional experience tailored to their preferences. Extensive research proves that most people watch clips and user-generated content on their phones, and simultaneously they prefer watching movies on a device with a larger screen like a computer or the television set. From YouTube, Netflix, Hulu to Amazon, and even the cable companies are going wireless and replacing traditional offerings with special and customized packages to attract more consumers. In the upcoming era 5G, IoT, artificial intelligence, machine learning, blockchain and ledger technology, will undoubtedly alter the way businesses operate today.
After the new digital transformation that is taking place, certain changes are observed in the media and entertainment industry. Traditional revenue models are decreasing in their growth as the new models are emerging. So, if you are in the media industry and still unsure on whether to adapt to digital transformation, then maybe it is just about time to brainstorm and go digital.
Since business decisions have far-reaching implications, digital disruption paves the way for better and improved decision making, which in turn helps the organization grow, evolve, and remain relevant.
But change is inevitable!