AI-Powered Media & Entertainment: Transforming Revenue Models & D2C Strategies
Navigating the New Media Landscape
AI-Powered Media & Entertainment: Transforming Revenue Models & D2C Strategies
The insights shared by our industry leaders, combined with our survey data, reveal a clear direction for media and entertainment businesses navigating this complex landscape. With competition for viewer attention intensifying, the imperative for more sophisticated strategies has never been stronger.
Key takeaways
Hybrid Monetisation Models
- Subscription-only models are giving way to multi-faceted approaches
- Disney+ exemplifies this trend with a third of subscribers on ad-supported tiers
- Ad integration requires sophisticated understanding of viewer tolerance and experience
Bundle Partnerships
- Strategic bundling significantly improves customer retention
- Sky Glass demonstrates the power of integrated hardware-platform-content ecosystems
- Complementary services create value beyond simple discounting
Content Discovery Solutions
- Enhanced recommendation capabilities deliver significant platform value
- Channel 4's "unalgorithm algorithm" balances AI with editorial curation
- Effective discovery combines technology with brand values and audience understanding
AI Implementation
- AI enables content production at scales previously uneconomical
- BBC leveraging AI for local sports coverage demonstrates targeted application
- Focus on augmenting human creativity rather than replacing it
Distribution Balance
- Content distinctiveness determines direct-to-consumer viability
- Sports and special interest content show the most promise for DTC success
- Channel 4 now generates 30% of revenue from digital channels
Technology and Revenue Innovation
- Strategic technology partnerships preferred over in-house development
- Emerging models include commerce integration and content repackaging
- Traditional broadcasters leveraging trust as a key differentiator
Key takeaways
Hybrid Monetisation Models
- Subscription-only models are giving way to multi-faceted approaches
- Disney+ exemplifies this trend with a third of subscribers on ad-supported tiers
- Ad integration requires sophisticated understanding of viewer tolerance and experience
Bundle Partnerships
- Strategic bundling significantly improves customer retention
- Sky Glass demonstrates the power of integrated hardware-platform-content ecosystems
- Complementary services create value beyond simple discounting
Content Discovery Solutions
- Enhanced recommendation capabilities deliver significant platform value
- Channel 4's "unalgorithm algorithm" balances AI with editorial curation
- Effective discovery combines technology with brand values and audience understanding
AI Implementation
- AI enables content production at scales previously uneconomical
- BBC leveraging AI for local sports coverage demonstrates targeted application
- Focus on augmenting human creativity rather than replacing it
Distribution Balance
- Content distinctiveness determines direct-to-consumer viability
- Sports and special interest content show the most promise for DTC success
- Channel 4 now generates 30% of revenue from digital channels
Technology and Revenue Innovation
- Strategic technology partnerships preferred over in-house development
- Emerging models include commerce integration and content repackaging
- Traditional broadcasters leveraging trust as a key differentiator
Actions for media executives:
- Implement hybrid monetisation strategies that offer viewers more choices while diversifying revenue streams
- Develop bundle partnerships that increase perceived value and reduce churn
- Balance algorithmic and editorial approaches to content discovery that reflect brand values
- Identify targeted AI applications that expand content coverage while maintaining quality
- Evaluate direct-to-consumer opportunities based on content distinctiveness and audience relationships
- Pursue technology partnerships that provide innovation access without creating lock-in
- Explore emerging revenue models that leverage existing content assets in new ways
The future of media and entertainment success lies in the ability to combine multiple revenue streams, navigate complex distribution decisions effectively, and deliver value through every interaction. This requires a fundamental evolution in how content is created, distributed, and monetised, supported by thoughtful technology investments and clear strategic focus.
As viewer behaviours continue to evolve and competition intensifies, organisations that master this new approach will find themselves not just surviving in a challenging landscape, but thriving through meaningful audience relationships and sustainable business models.
The media companies that will lead this transformation are those that maintain a relentless focus on audience needs while having the courage to evolve beyond traditional approaches. By balancing innovation with discipline, and experimentation with measurement, these organisations will define the next era of media and entertainment.
Accelerate your digital evolution!
A customised transformation roadmap
As a valued industry partner, we offer:
- A comprehensive business case and strategic plan for your media transformation
- Analysis of your specific pain points with tailored solutions
- Access to expertise across multiple industries for innovative approaches
Meeting your unique needs wherever you are on the journey
- For content owners exploring direct-to-consumer: We can help you monetise your back catalogue while building first-party data capabilities
- For broadcasters shifting to OTT: Our technical expertise spans all 80+ microservices required for successful platform operation
- For established OTT players: Creative commercial solutions to optimise your technology investment and operations
Globant's approach focuses on alignment, not just expertise
Globant offers more than just time and resources. We aim to find partners with shared goals, aligning our interests through commercial models where we "have skin in the game" with commitments to measurable KPIs. Our value comes from delivering outcomes, not just services.
With expertise across the full OTT value chain—from content ingestion to global distribution—we provide a complete solution. Our relationships with infrastructure providers, CDNs, device manufacturers, and payment systems reduce complexity and accelerate your path to market.
Contact Giorgio Tacchia at Globant to schedule your strategic session: [globant-uk@globant.com]
Connect with us and let's shape the media's future together.
Globant is a digitally native company that helps organizations reinvent themselves and unleash their potential. They bring innovation, design and engineering together at scale to create impactful solutions. Globant specializes in digital strategy, design, and development, leveraging cutting-edge technologies and trends. With their agile pods methodology and commitment to innovation, Globant is a trusted partner for top brands looking to lead their industries in the digital landscape. They create digital transformations using disruptive technologies like AI, blockchain, and cloud computing. Major clients include Google, EA, and Disney. Globant bridges the gap between design and engineering to develop innovative software products. Overall, Globant helps global organizations reinvent themselves digitally.
Globant-UK@globant.com