Media companies around the world continue to face a period of profound transformation, brought about by the prevalence of disruptive technologies. As part of this seismic shift, a growing number of media executives admit they’ve seen the writing on the wall – that to succeed over the long term, it will be necessary for their companies to evolve from their traditional roles as the suppliers of content and products (e.g. newspapers, movies, TV shows, etc.) to their new roles as the developers and curators of solutions that allow customers to consume the content they want in a real-time, on-demand and cost-effective manner.
Many media companies remain resistant to change since they continue to enjoy strong cash flows today, however, the status quo will not be a viable, long-term business strategy.
Our survey revealed that the majority of media executives (60%) are optimistic about the opportunities associated with disruptive technologies, however, this does not translate into operational preparedness and many are not ready to capitalize on those opportunities.
In fact, only 33 percent of media company decision-makers say they are ‘very prepared’ in their strategic vision for technology amid a disruptive environment and just 25 percent say their companies are ‘very prepared’ when it comes to the talent and skills of their employees.
The survey results tell us that to a high degree, media executives’ concerns about their own organizations’ performance are rooted in competitive pressures – not only from existing competitors from within their industries, but also from players from other industries who are now encroaching on their turf.
Further complicating things for many media companies today is the fact that that rapid pace of technological disruption (and the associated increase in competition) is making it difficult for many of them to catch up once the competition has made its move. More than a third of respondents (35 percent) said that ‘we saw the new technology trend coming too late’, while nearly half of respondents representing media organizations (44 percent) said ‘we can’t invest quickly enough to keep up’.