The media industry is experiencing a period of significant transformation as content, services, and technology converge. This shift is opening new avenues for revenue while introducing a range of risks that companies must manage effectively.
Stephen Becker, managing director for the Northeast region at WTW, said the shift is reshaping how audiences access and consume media, and at the same time opening new avenues for growth.
“The convergence of content, services and technology is driven by the evolving media consumption habits of consumers,” he said. “Today, consumers access media through a variety of platforms, including the web, smartphones, tablets and streaming television.”
Becker explained that the rise of multi-channel distribution has changed how companies think about audience engagement and revenue generation. He pointed out that by delivering the same content across multiple platforms, businesses can expand their reach and tap into different market segments.
“This multi-channel distribution strategy allows media companies to reach a broader and more diverse audience, creating new revenue opportunities,” he said. “Media companies can now distribute a single piece of content through various channels, such as online streaming, mobile apps and social media. This multi-channel approach not only increases the reach of the content but also provides multiple touchpoints for generating revenue.”
Regarding specific revenue models emerging from this shift, Becker described a mix of approaches that can coexist within the same organisation. He noted that these strategies allow firms to be less reliant on any single income source.
“A media company can offer content through subscription models, advertising and pay-per-view options, thereby diversifying its revenue streams,” he said. He added that technology’s role in personalisation has become increasingly important.
“Media companies can use data analytics to understand consumer preferences and tailor content to meet their specific needs. This personalisation can lead to higher engagement and loyalty, which are crucial for long-term revenue growth.”
Becker cited streaming platforms as a clear example of how data-driven personalisation works in practice. He observed that these platforms have built sophisticated recommendation systems that help keep audiences engaged for longer periods.
“Streaming platforms can recommend shows based on a user’s viewing history, enhancing the user experience and increasing the time spent on the platform,” he said.
“Media companies can partner with tech firms to develop new services and products. These collaborations can lead to the creation of innovative content delivery systems, such as virtual reality and augmented reality experiences, which can attract a new audience and command premium pricing,” Becker said.
Turning to risk, Becker highlighted that the risks are expanding alongside opportunity. He explained that legal and regulatory issues are among the most pressing, especially as traditional content moves online.
“As content moves from traditional print and broadcast media to digital platforms, the rights to distribute content can become murky,” he said. “Many media companies have found themselves in legal battles over content rights, particularly when transitioning from print to digital formats.”
Becker underscored the importance of ensuring that rights are fully secured before distribution. He said this requires careful internal checks and ongoing awareness of regulatory changes.
“Risk managers must work closely with the legal department to ensure that the company has the necessary rights to distribute content across all intended platforms,” he said. “This involves conducting thorough audits of existing content and rights agreements to identify any gaps.”
Addressing the pace of technological change, Becker said it is creating a constantly shifting environment that requires active monitoring. He stressed that organisations cannot afford to take a reactive stance.
“The media landscape is evolving at an unprecedented rate, and what is considered the norm today may be obsolete in just a few months,” he said. “To mitigate this risk, risk managers should form strategic partnerships with carriers, brokers and industry associations to stay current with the latest developments.”
Becker also identified cybersecurity as a major operational challenge. He noted that increased reliance on digital platforms has created more vulnerabilities for media companies.
“Media companies should invest in robust security measures and regularly update their systems to protect against emerging threats. Risk managers should also work with IT departments to ensure that there are clear protocols in place for responding to security incidents,” he said.
Becker said that new entrants, particularly large technology companies and streaming platforms, are forcing traditional players to rethink their strategies.
“To stay competitive, media companies must continuously innovate and adapt to consumer preferences. Risk managers can play a crucial role in this process by identifying potential competitive threats and developing strategies to address them,” he said.
What are your thoughts on this story? Please feel free to share your comments below.
