AI-Powered Media & Entertainment: Transforming Revenue Models & D2C Strategies
AI-Powered Media & Entertainment: Transforming Revenue Models & D2C Strategies
AI-Powered Media & Entertainment: Transforming Revenue Models & D2C Strategies
Our research included polling of senior media and entertainment executives, providing structured insights that complement our in-depth interviews. These findings highlight industry priorities, challenges, and strategic approaches.
Strategic priorities and opportunities
Daniela Boquete reinforces this perspective:
"Hybrid monetisation models, particularly those incorporating advertisements, have emerged as a powerful solution. This approach makes it lighter for subscribers to move between services while still generating revenue."
As Angus Mitchell explains::
"We've launched 4 Plus for viewers who want an ad-free experience. We also have the Indie Growth Fund, Four Ventures, and branded content where we leverage our in-house expertise for brands."
Marco Berkheij observes::
"Content owners are primarily motivated by financial considerations when exploring direct-to-consumer models. They believe they can generate more revenue and maintain greater control over their content."
Technology priorities and implementation
Richard Huang notes:
"A large percentage of our viewership comes from the 'next episode' button. That's where personalised algorithms are truly valuable—when you need to determine what to recommend next."
Marco Berkheij explains:
"If you're in the banking business, you don't buy and maintain your own cars; you lease them. Similarly, content owners should focus on their core business of creating compelling content rather than building technology infrastructure."
Angus Mitchell describes their approach:
"We test viability through small closed tests or soft launches with selected brands and advertisers. We typically look at a 3 to 5-year horizon for return on investment."
Implementation Challenges and Considerations
Berkheij elaborates:
"The subscription model faces significant challenges and consumers are becoming more selective. This creates a high barrier for new entrants unless they offer truly distinctive content."
"Sports content is particularly well-positioned for DTC success,"
notes Berkheij.
"These properties can offer enhanced viewing experiences that traditional broadcasts cannot – multiple camera angles, player-specific views, and interactive features."
Key patterns and implications
Five notable patterns emerge from our executive survey:
Hybrid Approaches Dominate: Both monetisation and distribution strategies are increasingly hybrid, combining elements of traditional and emerging models.
Strategic Partnerships Preferred (67%): Media companies consistently favour partnerships over internal development for accessing technological capabilities.
Content Discovery Critical (67%): Enhanced recommendation capabilities are seen as delivering the greatest platform value.
Balanced Technology Metrics: Technology investments are evaluated through multiple lenses rather than a single dominant metric.
Content Differentiation Essential: Distinctive content, particularly in sports and special interest areas, shows the most promise for direct-to-consumer success.
These findings provide structured validation for the insights shared by our industry leaders, demonstrating clear patterns in how media and entertainment organisations are approaching today's evolving landscape.
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