45% imagine that, with out reinvention, their firms will stop to exist in 5 years
50% say they’re looking for new methods to achieve the top buyer
48% cited the transformation of labor as key to reaching their strategic targets
Practically half (48%) of media and leisure (M&E) executives surveyed say that rising resilience is their greatest post-pandemic precedence. That is in accordance with a brand new EY US survey and report, Building a resilient media and entertainment enterprise | EY – US, which analyzes the views of greater than 100 world trade executives to disclose how latest occasions have impacted their companies.
In final 12 months’s pre-pandemic survey, 37% of executives stated that with out reinvention their firms would stop to exist in 5 years. On this 12 months’s survey, 45% of respondents held the identical view. But, questions stay round the place to start — 42% of executives (up from 25% final 12 months) admit they’re unsure about what actions to prioritize with the intention to understand their enterprise transformation agendas.
Constructing resilience and rewriting company DNA are mission vital
John Harrison, EY Americas Media & Leisure Sector Chief, says:
“For media and leisure firms, constructing extra resilient enterprises requires rewriting company DNA. To try this, management groups should handle the operational and strategic adjustments occurring within the trade. Reinventing a corporation’s inside processes — making them fit-for-purpose and future-proofed — should happen throughout the context of re-examining your entire enterprise mannequin.”
COVID-19 was a wake-up name for the M&E trade. Executives noticed the pressing must speed up transformation. Greater than half (52%) of M&E executives say COVID-19 completely modified how their companies function.
The survey additionally reveals that M&E executives are constructing resilient companies and reframing their futures by specializing in 4 key areas: simplifying operations and capabilities; innovating enterprise fashions; securing the enterprise; and reimagining the way forward for work.
Simplification, innovation and customer-centricity rise to the highest
Total, 41% of M&E executives cited simplifying the enterprise as a enterprise precedence, particularly, consolidation of enterprise models, departments or capabilities (52%) and outsourcing back-office actions (43%).
M&E executives are additionally centered on enterprise mannequin innovation, with 48% saying they will now not depend on conventional trade enterprise fashions. Creating new distribution fashions is a key innovation precedence, with half of M&E executives saying they’re dedicated to exploiting new paths to achieve the top buyer.
Broadcast and cable community house owners, for instance, are actually totally dedicated to the direct-to-consumer (D2C) mannequin, shifting the trade ecosystem construction from wholesale to retail, whereas movie studios are proactively shrinking the theatrical window to get motion pictures onto streaming companies extra rapidly, fueling D2C subscriber progress and reaching effectivity in advertising and marketing spend for brand spanking new releases.
Harrison says: “COVID-19 has accelerated the tempo of long-running adjustments going down throughout the M&E trade, together with cord-cutting, the explosion of streaming and the continuous progress of focused digital promoting. For a lot of of those firms, that is the primary time they’ve a direct relationship with their clients. They perceive that they should proceed to simplify, reinvent, safe and future-proof their companies to retain clients and stand the check of time.”
Workforce transformation and investing in know-how are paramount
COVID-19 is having ongoing structural results on workforce planning, with near half of M&E executives (48%) citing the transformation of labor as key to reaching their strategic targets.
Amongst M&E executives, essentially the most most popular choice (53%) for redesigning their workforce mannequin includes versatile working practices, together with a stability of on-premise and distant work. This transfer will handle points associated to expertise and abilities gaps, work location and recruiting prices by making it simpler for firms to supply expertise extra broadly.
Different key findings from the survey embody:
Changing legacy know-how is the largest IT precedence (52%), with enhancing IT safety (44%) and hiring IT expertise (41%) additionally in focus.
For 61% of mid-size M&E firms, a scarcity of funding capital is without doubt one of the greatest inhibitors to progress and transformation.
Subsequent-gen applied sciences equivalent to 5G and IoT present a platform to have interaction clients in new methods and 47% of executives are investing in them.
Within the sports activities and dwell occasions subsector, 53% of respondents point out their companies face enduring change following the pandemic.
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In regards to the examine
The most recent EY annual survey of media and leisure leaders requested greater than 100 members of the C-suite about their priorities for the 12 months forward and past. Respondents symbolize US firms spanning the M&E trade’s different subsectors and with annual revenues ranging in scale from US$250m to greater than US$10b. The survey was performed in December 2020.
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