Looking Beyond Generations: How is Content Consumption Evolving?

As technology becomes more democratized and accessible, Media and entertainment companies are shifting from focusing on the usual indicators to looking more closely at content consumption patterns.

FREMONT, CA: For decades, media consumption remained unchanged, and people got their news and entertainment from TV, radio, newspapers, and magazines. But, after the internet-powered tech boom happened, people can stream music, videos, and movies from the comfort of their homes. With all these, for media and entertainment companies, it is no longer adequate to sort customers into demographic brackets. Today’s patterns of media consumption suggest that M and E firms should invest in innovative products and services needed to power their new business models.   

As digital disruption expands its footprint in the M and E industry, companies are not linked to the same future. Some areas, especially traditional print sectors like newspapers, books, magazines, and periodicals, have been affected dramatically by digital disruption. It has seen its earnings decrease during that period. The areas driving growth and counterbalancing for other sectors' losses are film, video games, television, internet-only publishers, and social media.

Research says that revenues via conventional channels are down 1 percent, while consumption through the internet and mobile has more than recompensed for these losses, with a healthy 18 percent increase.  To endure the storm of digitalization, the conventional print sector is improving its online presence and monetizing content through digital advertising. Pay-TV channels like cable are firm, which means television customers still value the service of very high quality, dependable delivery of video. 

Additionally, the increase of user-generated content online is fuelling different forms of production beyond the expert content production of conventional film studios. Social media is increasing in this growth, and it is the fastest-growing industry. Social media organizations are starting to make inroads into licensing plus the production of original content. The business model is about monetizing users' data and content, including how it shares existing media and entertainment. The gross profit margin of each division is the only ones with double-digit margin increase are internet publishing at 11 percent and social media at 56 percent. After improving tech infrastructure costs, profits from advertising for popular social media platforms are bound to expand exponentially.

Apart from shifting content consumption patterns, the rollout of the 5G network will also make content delivery up to 100 times faster, and the trends will be compounded. With all these changes happening around, consumers will recapitulate their interest in video, whether it's television, film, video games, or viral amateur content. Only by adopting advanced tech metrics, M and E companies can serve customers with optimized product mix and more intuitive customer relationships. 

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