The digital shift and progression to a ‘MyMedia’ company

2nd July 2014

A shift towards a more personalised customercentric media organisation is the single biggest change since the arrival of digital media.

 

 

 

According to new research by PwC, a shift towards a more personalised customer‑centric media organisation is the single biggest change since the arrival of digital media. Digital is changing how we live, work and shop, as well as how we inform, educate and entertain ourselves. Media is one of the sectors with the most to gain and lose from the digital revolution.

David Lancefield, entertainment and media partner at PwC, said:

 “Media is at the forefront of the digital revolution, because so many of its products and services can already be delivered in digital form and it may not be long before digital revenues from print, film, publishing and music overtake physical revenues in some markets. Media companies don’t need a digital strategy anymore; they need a business strategy, and a business model, which is fit for the digital age.”

This more personalised customer‑centric shift requires a fundamental rethink of every aspect of a media organisation and PwC has broken this down into three digital waves.

The first digital wave

This first wave of the digital revolution is clearly underway. Companies deliver increasingly personalised content experiences using digital as a more effective, and efficient, channel to the consumer. However, personalisation is still in its infancy and this is exactly where most media companies are focusing their efforts. Homepages and apps are moving towards using more ‘if you liked this, you might like this’ recommendations. A lot of this personalisation relies on what you buy rather than what you use.

David Lancefield, entertainment and media partner at PwC, said:

“This is only the start of the digital revolution. Many of the most dramatic changes we’re seeing in the sector are being driven by the need to develop new business models, and challenge old assumptions to find new ways of working.”

The second digital wave

In the second wave, we will see the wholesale digitisation of certain markets – as is already happening in some areas of the media – and the development of completely new offerings driven by the enormous potential for personalisation. Companies will be able to tailor what they offer to match what their customers want to achieve – whether an experience, a goal or a personal change.

David Lancefield, entertainment and media partner at PwC, said:

“For the media industry, the second wave will shift the relationship between media companies and their customers from one based on selling them services or products, to one focused on helping them achieve the outcomes they want – whatever those are. This is where personalisation starts to become a reality. Some media companies are already starting to personalise their services, but so far it rarely goes much further than the ‘if you liked this, you might like this’ recommendations pioneered by Amazon. In the second wave, all that will change.”

Personalisation will transform the way people find, share, and consume media. Ultra high speed connectivity – both in the home and on the move – will allow media owners to exploit the as‑yet untapped value of their huge archives, and offer consumers vast new choice and interactivity. Those who watch TV, for example, will be able to explore the story behind a news item or documentary in more depth and understand how it affects their own community, as well as building their own ‘portfolio’ of favourite channels and entertainment shows.

The third digital wave

As we move into the third wave, the successful media companies will be those who are completely centred on the needs of their customers. The concept of ‘anytime, anyplace, anywhere’ will finally become a reality, and content will be more targeted, more tailored and distributed across many more devices than ever before.

David Lancefield, entertainment and media partner at PwC, added:

“Bring this all together, and you have what PwC are calling a ‘MyMedia’ company. A MyMedia company will be one that has the complete trust of the consumer, and provides a seamless service that delivers what customers really want – a ‘consumer first’ company.

“This will be highly personalised to the needs of the customer – whether an individual, immersive experience for digital natives, or a simpler, lean‑back experience for other consumer segments. The company will have access not only to deep and detailed customer data, but will be able to turn the analysis of that data into real customer insight, based on emotional, psychological and behavioural intelligence.”

The best‑in‑class media companies are already starting this journey, moving beyond a multi‑platform approach encompassing both digital and physical products, towards far greater personalisation. Some of the world’s most forward‑thinking companies are now experimenting with wave two and three strategies.  

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