Three Changes That Influenced Entertainment
Technological change profoundly affected the online content, publishing, and entertainment industries. The proliferation of digital devices and platforms created opportunities for businesses to reach their audiences. At the same time, it also created new challenges, as entertainment companies began to compete for attention in an increasingly crowded marketplace. Social networks and e-commerce portals emerged as powerful channels for promoting and selling content. Online auctions became an essential source of revenue for many businesses. Moreover, B2B e-commerce revolutionized the way businesses buy and sell goods and services. Given the importance of technology in these industries, it is not surprising that technological change significantly impacted the way businesses operate.
The shift to digital formats
The emergence of Internet-based broadcasting system from the traditional cable cords to broadcast revolutionized the online content, publishing, and entertainment industries. The Internet-based broadcasting system put the traditional cable TV transmission and process technology under pressure (Laudon & Traver, 2018). Non-traditional sources such as Netflix, Hulu, and Amazon, not to mention YouTube, tik-tok and many others produce an increasing amount of original material for online consumption. For instance, back in 2016 Netflix spent $6.88 billion on original content. Recently, the content spending of Netflix worldwide amounted to around 16.7 billion U.S. Dollars in 2022. This was a massive shift in the business model of the content industry, as it was once based on cable companies and networks licensing their content to distributors.
Content creators in the Film industry also gained from internet broadcasting system since they no longer had to rely on cable carriers to deliver new content. The internet evolved into a replacement distribution channel for slightly elevated content (Laudon & Traver, 2018). Consumers today demand more influence over the content and timing of the entertainment programs they consume. Customers can watch a whole year's worth of a show on the internet, which cable Television did not allow (Price Waterhouse Coopers, 2016). Moreover, customers did not want to be pushed to acquire a channel package or spend on material they will never see. The Internet broadcasting system provided customer autonomy, personal freedom, and a tiered pricing TV.
The old business model was no longer sustainable, as the traditional sources of revenue have practically dried up. In response, businesses switched to models such as subscription-based services, pay-per-view, and advertising. These models provide a more sustainable way of generating revenue in the long term. They also allow businesses to monetize their content better.
The development of hybrid devices
The proliferation of digital devices and platforms influenced online content, publishing, and entertainment industries in several ways. Hybrid devices integrate the functions of two or more distinct media outlets into one device (Laudon & Traver, 2018). Functions such as ebooks, social media, music, games, and videos became available on a single device. For example, Amazon's Kindle Fire is a hybrid device that combines the functions of an e-reader, tablet, and media player (Williams, 2016). The Kindle Fire allows users to access books, magazines, newspapers, apps, games, movies, and TV shows. This convergence of functions in one device gave users more control over their content consumption. iPads, iPhones, Android and other smartphones are examples of devices that combine phone communication, music, photographs, and video in a single device. These various functions created opportunities for businesses to reach their audiences. The devices also contributed to the high time spent on the internet, affecting business strategies.
E-Commerce business built its business models and marketing strategies because consumers today spend their time on the internet using these devices. Today, every industry has recognized this fact and changed its strategies to target these users. The growth of digital devices and content has led to increased data consumption. This is especially true for video, a very data-intensive activity (Laudon & Traver, 2018). Generally speaking, the average person uses anywhere from 1 to 30 GB of data per day. This increase in data consumption has a significant impact on the way businesses operate. For example, many businesses offer unlimited data plans to their customers. This is a response to the growing demand for data.
The growth of big data and predictive technology
In recent years, there has been a growing interest in big data and predictive analytics in the online content, publishing, and entertainment industries. Big data is a term used to describe the large volume of data generated by businesses daily. This data can come from various sources, including social media, website traffic data, customer purchase history, and so on. Predictive analytics is a type of analytics that uses historical data to predict future trends (Laudon & Traver, 2018). It can identify potential customers, understand customer behavior, and forecast future sales.
The use of big data and predictive analytics has become increasingly important in the online content, publishing, and entertainment industries. These technologies can be used to understand customer behavior, target potential customers, and predict future trends. Today, Entertainment companies that don't harness the power of big data and predictive analytics have a competitive disadvantage in the marketplace. For instance, today, news media outlets are using predictive analytics to provide customers the news they are often interested in using data collected from their previous search results.
This information is now even more accurate with the help of artificial intelligence.
The growth of big data and predictive technology is the perfect tool for entertainment companies target its potential audience and generate leads. Also, by understanding customer behavior, entertainment companies develop strategies to convert these leads into customers. Moreover, big data can also improve the quality of content. The development of hybrid devices is also a massive opportunity for entertainment companies because they have an assurance of a ready market. The only hurdle remaining is building strategies to attract target customers and sell the proposed services and products. The increase in data consumption is an opportunity as it provides an opportunity to develop unlimited data plans for its customers. Which will help attract more customers and grow its business.
Price Waterhouse Coopers (PWC). (2016). Global Entertainment and Media Outlook 2015–2019.
Williams, A. (February 29, 2016). Paying for Digital News: The Rapid Adoption and Current Landscape of Digital Subscriptions at U.S. Newspapers.
Laudon, K., & Traver, C. (2018). E-Commerce 2017, Global Edition (13th ed., pp. 700-745). Pearson.
Stoll, J. (2023, May 2). Netflix: Content spend 2022. Statista. https://www.statista.com/statistics/964789/netflix-content-spend-worldwide/#:~:text=Content%20spend%20of%20Netflix%202016%2D2022&text=The%20content%20spending%20of%20Netflix,billion%20U.S.%20dollars%20on%20content.
Whole, D. (2022, December 22). How many GB of internet does the average person use? The Donut Whole. https://www.thedonutwhole.com/how-many-gb-of-internet-does-the-average-person-use/#:~:text=)%2C%20the%20device%20you%20are%20using,GB%20of%20data%20per%20day.