CONTENT – Is it still King?

Content has been and will be at the heart of Entertainment or Media businesses. The business models for these businesses have always been about monetising the Content. Though Content is still the heart or the key product of these enterprises, it’s form has undergone a change largely because it’s distribution as well its modes have changed. Video now is the preferred form of content, largely because it’s distribution is possible worldwide through advances in technology manifesting itself in the Internet reach. With wireless technology and mobile devices content can now be consumed at anyplace and anytime. This in a way has increased reach but the industry still has to come up with a way to monetise this reach. Also some of the older methods of distribution are bordering on the extinct specially the Print industry while current models on satellite as well as fixed time viewing are also under threat. In other words, E&M businesses worldwide need to rapidly  change to safeguard revenues and adopt the new world order.

The other significant change in the E&M world is the rise of tech companies who initially started as the necessary adjunct for the distribution of content but have now become not only distributors but key buyers as well as producers of content. Also since some of these companies are social media giants or key device makers or large online retail enterprises,they have natural congregation of communities which in turn is fueling their quest for Content to attract customers. Not only are these companies making as well as acquiring content but are slowly becoming reservoirs of large advertisement revenues in the digital world which was once the preserve of the large entertainment and media conglomerates. Nothing demonstrates this better then when you look at the market caps in today’s time when a Google and Apple is valued at $1 trillion while the largest of the entertainment giants do not go beyond $200 million. However Content is still key for their survival.

In the changed word order, one can reason that for the Entertainment Companies even with the onslaught of tech giants,Content remains their key survival plan. Premium exclusive content is still and will always be a winner. It is the only arsenal to be close to the customer. While advertisement may take a hit, subscription is the way to go. Success of Netflix is the case in point. One can conclude that ‘Content like always will be King’.


Published by eyeonmediablog

Professional Chartered Accountant and presently the founder and chairman of Sapphire Professional Services Pvt Ltd - a boutique advisory firm in M&A,Strategy and Structuring ( ). Previously a senior partner with PwC and leader of the Entertainment & Media industry in India for 7 years.

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