Accenture has launched the 'Media Thrive Index' to evaluate the effectiveness of reinvention strategies in the media and entertainment industry. This index aims to assess the financial and strategic success of companies in navigating the challenges of an evolving industry landscape.
Insights from the Reinvent for Growth Study
The Media Thrive Index is built upon the insights gathered from Accenture's third annual “Reinvent for Growth” global entertainment study. The study surveyed 6,000 consumers across ten countries, including India, to understand media consumption behaviours and the challenges faced by traditional media companies.
The Need for Radical Reinvention
The study identified 50 different strategic options for reinvention, emphasizing the necessity for radical moves to secure lasting financial and strategic success. Traditional media companies must pursue innovative strategies to thrive in a rapidly changing environment.
Examples of Radical Reinvention
Case studies, such as Sony Pictures and The New York Times, illustrate the importance of radical reinvention. Sony Pictures opted to focus on content production for streaming services rather than becoming a direct-to-consumer platform. Similarly, The New York Times diversified its offerings to include consumer apps for various interests, enhancing both strategic and financial resilience.
Challenges Facing Media Organizations
Key findings from the study highlight challenges faced by media organizations, including consumer navigation difficulties, subscription churn, and shifting preferences towards user-generated content and social media platforms.
Strategies of Big Tech Companies
Big Tech companies, such as Amazon, Google/YouTube, and Apple, are investing heavily in streaming, gaming, and live sports, leveraging diversified revenue streams to offer compelling services and maintain market dominance.
Opportunities for Media Organizations
Despite challenges, opportunities exist for media organizations to expand beyond traditional content offerings. Lifestyle bundles and aggregation platforms present avenues for growth, with consumers expressing interest in accessing digital services through a single app.
Future Outlook and Recommendations
As the media industry evolves, incremental actions are insufficient for sustained success. Media companies must place strategic bets, align with consumer preferences, explore new growth avenues, and redefine their roles in the entertainment value chain to thrive in the future.
Methodology
The study surveyed 6,000 consumers aged 18+ across 10 countries and was conducted between November and December 2023. Oxford Economics assisted in developing the survey, analyzing data, and deriving key insights.
In Conclusion
The launch of Accenture's Media Thrive Index underscores the imperative for media organizations to embrace radical reinvention strategies in response to evolving consumer behaviours and industry dynamics. By adopting innovative approaches and exploring new avenues of growth, media companies can position themselves for long-term success in an increasingly competitive landscape.
