Over the last few decades, media and entertainment companies have had a plethora of new distribution platforms from which to choose in an attempt to grow their audience and attract new advertising and subscription dollars. From the general Internet to social media sites, and then from mobile apps to streaming video, each successive technology or platform offered big content providers with new potential growth engines and additional ways to earn money. But now the situation has changed.
Media and entertainment companies are facing increased competition for viewers’ attention, subscriptions and advertising dollars, and with no new growth engine on the horizon, these companies are scrambling to find ways to lower costs and increase revenues. In addition to pulling traditional business levers such as laying off workers and increasing subscription prices, their new attempts at sustaining their businesses include increasing the focus on sports and gaming content, creating shopping platforms, bundling services and finding potential uses of artificial intelligence (AI). While these efforts may slow a decline, none of them suggest a powerful next leg of growth. The challenging downward spiral will continue.