Reinvent

forgrowth

intheMedia

Industry

Onlytheradicalwillsurviveandthrive

4

8

Hello

09:30

Isabella,

NewYork

Mood:Cheerful

4

Resumeplaying

Resumecall

Hello,

Themediaindustryisataninflectionpoint.

Inalandscapeofdwindlingfinancialreturns,

encroachingtechgiantsandanincreasingly

fragmenteddigitalmarket,onlyradical

reinventioncanhelpensuresurvivaland

success.Themarginalstrategiestraditional

mediacompanieshaveadoptedto

improveperformancehavehadlimitedimpact.Todowellinthisadversebusinessscenario,

it’stimeforboldchange.

Inthispaper,weexplorehowtraditional

mediaandentertainmentcompaniescan

achieveprofitablegrowthbyundertaking

significanttransformations.

Here’showtogetradical!

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4

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Copyright?2024Accenture.Allrightsreserved.2

Tableofcontents

eeinvefo-growhint+eMedalndustyonlytheradicalwillsurviveandthrive

05Introduction

07Thechallengesclosingin

15Reinventionimperatives:

Getradicalandgetoutofyourcomfortzone

21Foundationalmovestogetstarted

29AccentureInfo

Copyright?2024Accenture.Allrightsreserved.3

Authors

JohnPeters

ManagingDirectorandLead,

Media&Entertainment

LosAngeles

john.s.peters@

StuartGreen

SeniorClientAccount

Executive

London

stuart.green@

NeerajSharma

HeadofMediaIndustryPractice

Bengaluru

neeraj.s.sharma@

LukasLuft

BusinessStrategy

Manager

Miami

lukas.luft@

SwatiVyas

ThoughtLeadership

ResearchSrPrincipal

Bengaluru

swati.vyas@

Contributors

MarkFlynn,ReginaMaruca,BijoyAnandothKoyitti,StuartGreen,NeerajSharma,GregMerchant,PedroOttCastillo,JaivishaKapadia,NarinehOhanian,AnshikaGandotra

Copyright?2024Accenture.Allrightsreserved.4

INTRODUCTION

It’stimeforradicalstrategicmoves

Thecrisisthattraditionalmediaandentertainmentcompanieshavetriedtoavoidisallbutontheirdoorsteps.Overthelastfewyears,wehaveseenmanybusinessesinthisindustrytake

incrementalstepstocutcosts,boostproductivityand

increasemarketshare.Somehaveachievedshort-termgainsbydoingthosethings,butevenforthem,thebigpicturelooksbleak.Today’smedialandscapeisindisarray–markedby

increasinglyfickleconsumersandbythecontinuedinfiltrationofBigTechfirmsthataresmashinglegacybusinessmodels

andbeatinglegacycompaniesonrevenues,profitabilityandcashflows.From2018-23,BigTechinfiltratorsgrewtheir

operatingcashflowfourtimesfasterthanlegacymedia

(10.0%vs.2.5%).1

It’stimeforradicalstrategicmoves.

Whyradical?Outofmorethan50strategicoptionsthatwe

recentlyassessedthroughourproprietaryMediaThriveIndex,onlythe12ratedas“Radical”showapathforlegacymedia

companiestosecurethesoundfinancialfootingtheyneedtoachieveandsustainsuccessinthecomingyears.

work.Tosignificantlyaltertheireconomicprofiles,theyneedtomoveinnewdirections,anddosoatscale.Theyneedto

placebigbetsandgowhereconsumerswanttobe,takingonnewrolesintheentertainmentvaluechaintotapnewsourcesofrevenue.Theyneedtorethinkthecustomerstheyserve

andeventheindustrieswheretheychoosetocompete.Andthatmeansabandoningclassicstrategicplanningtheoryandexploringnewgrowthareasthatpushwellbeyondtheircorecompetencies.

It'sanenormousmandate,butalsoatremendousopportunity.ConsiderSonyPictures.Thecompanyshunnedtheideaof

becomingadirect-to-consumer(DTC)streamingserviceto

focusonproducingandsellingcontenttothebigstreamersinadditiontoreinvigoratingitsportfoliotospanvideogames.

This,asitsparentcompanyisalsomakingaboldmoveintotheelectricvehiclemarket.TheNewYorkTimes2offers

anotherexample.TheTimesisgainingnewstrategicand

financialresiliencethroughaportfolioofofferingsthatincludeconsumerappsforaudio/podcasts,sports,cooking,

shopping,andgames.

Howradical?Webelievethattraditionalmediacompanies

mustreinventthemselves,systemically,fromthegroundup.

Modeststrategicadjustmentsandlimitedinitiativeswon’t

ReinventforgrowthintheMediaIndustry:onlytheradicalwillsurviveandthrive

Outofmorethan

50

strategicoptionsthatwe

recentlyassessedthrough

ourproprietaryMedia

ThriveIndex,onlythe12

ratedas“Radical”showa

pathforlegacymedia

companiestosecurethe

soundfinancialfooting

theyneedtoachieveand

sustainsuccessinthe

comingyears.

Copyright?2024Accenture.Allrightsreserved.5

Audiencecultivators

Withexquisiteprecision,thesecompanieswillcreateand

efficientlymonetizeentertainmentinoneormultipleforms,focusingruthlesslyoncontentandcost

efficiencies,andmakingsurethey'reincludedinaggregatorplatformsandbundles.

INTRODUCTION

Inlastyear’s

ReinventforGrowthstudy

,3weintroducedthreestrategicarchetypesasrecommendedreinventionpathsforcompaniestorepositionforgrowthinthefuture(Seebox.)

Ayearlater,armedwithadditionaldata,webelieveevenmorestronglythatthesearchetypesspellsurvivaland

profitabilityforlegacycompaniesinthisfield.(Sony

Picturesisemergingasaprototypicalcontentmerchant,whileTheNewYorkTimesisanaudiencecultivator.)Butgettingtooneoftheseattractivearchetypesrequires

boldaction,now.

Withthaturgencytopofmind,

traditionalmediacompanies,

outlinesourproprietaryresearchfindings,andoffersasetof

foundationalimperativesto

jumpstartreinventionthat

delivers.

Threearchetypesforreinventioninthemediaindustry

Audienceaggregators

Theseplatformcompanieswilllinkmultipleentertainmentservices

andmore,offeringacommon

meetingplacetosatisfyawide

rangeofconsumerneedsand

wants,withproductdifferentiationthroughtailoredbundling.

Contentmerchants

Thesecompanieswillfocuson

makingthebestpossiblecontentandsellingthatcontenttootherbusinesses.Thekeyforthemwillbebuildingandmaintaining

standout,profitablebrands.

ReinventforgrowthintheMediaIndustry:onlytheradicalwillsurviveandthriveCopyright?2024Accenture.Allrightsreserved.6

66%

founditinconvenienttorepeatedlyenterpersonalinformationtoaccess

newservices.

10

minutessearchingfornewcontenthasnowdoubledfrom2021,reaching30%.

54%

spentmorethansixminutesonthisquest,comparedwith50%fromthepreviousyear.

THECHALLENGESCLOSINGIN

Streamingsplintersthelandscape

Thetraditionalmediasector’sforayintothestreamingarena,aimedatcapturingasliceofthedigitalpie,hasnotdelivereddesiredrewards.Instead,thesemoveshavecontributedtothedeterioratingeconomichealthandacceleratedasplintering

medialandscape.

Thisshiftcomplicatescontentdiscoveryforconsumers,

turningwhatshouldbeanenjoyable,seamlesssearchintoacumbersomechore.

Findingsfromourthirdannualglobal“ReinventforGrowth”

consumersurvey,whichasked6,000consumersacross10

countriesabouttheirmediaconsumptionbehaviors,reveal

significantchallenges.These‘stormclouds’indicateacomplexlandscapeofobstaclesthatcompaniesmustnavigate:

56%

ofthosesurveyedexpressed

frustrationathavingtopayfor

multipleplatformstoaccess

theirdesiredcontent,

comparedwith55%theprior

year(2022),reflecting

sustainedfrustrationlevels

andanabsenceofeffective

responsestotheseneeds.

36%

saidtheystruggledtofind

somethingentertaining,

exposingthecompanies’

inabilitytoprovideengaging

content.Makingitworse,52%

saidrecommendedcontent

didnotmatchtheirinterests,

exacerbatingtheproblem.

Copyright?2024Accenture.Allrightsreserved.

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北。Ψ,c心ζo印

20:30

Chicago

Mood:Hopeful

THECHALLENGESCLOSINGIN

Thegrowingcustomerdissatisfactionhasgivenrisetoanewphenomenon:theserialchurner.Thisgroup

demonstratesfluctuatingbrandloyalty,cyclically

subscribingtoandunsubscribingfromplatformsastheircontentinterestsevolve.Asignificantportion,59%oftherespondentswesurveyed,belongstothisgroup,showingapatternofcancelingand

resubscribingtoservicesinpursuitofdesiredcontent.

Thisisagrowingtrend:

47%

ofconsumers

canceledmoresubscriptionsin2023vs.2022

1

2

73%

discontinuedatleastoneservice

52%

cancelled

twoormore

Copyright?2024Accenture.Allrightsreserved.8

THECHALLENGESCLOSINGIN

Consumersleavingtraditional

mediabehind

Ourdatarevealedthattraditionalmediaisrapidlylosingcustomers,experiencingacriticalexodusthatsignalsaloomingdanger.Consider:

Oursurveyrevealedthat57%ofconsumersincreasedtheirtimespentonSubscriptionVideoonDemand(SVOD),butalso26%ofthemindicatedthattimeonlinearTV(non-

sports)decreasedsincelastyear.Meanwhile,consumersincreasedtheirtimespentonsocialmedia(52%),social

video(52%),andvideogames(50%),spaceswherelegacymediacompanieshavelittletonofootprint.

Evenestablishedstreamingprovidersfindthemselves

teeteringonthebrinkofsurvival.Oursurvey's11"choice

scenarios"revealedaclearconsumerbiasinfavorofsocialmediaandvideoplatformsoverbothtraditionaland

streamingmedia.Inmostscenarios,thepreferencefor

socialplatform-basedcontentoverSVODservicesnearly

doubledlastyear,highlightingasignificantshiftinconsumerbehaviorandpreferences.

Thesefindingshighlightthechallengesthatfaceall

incumbentsinarapidlyevolvingmarket.(SeeFigure1.)

Andhighlightingaseismicshiftinentertainment

preferences,59%ofconsumerssaidtheyregarduser-

generatedcontentasequallyentertainingastraditional

media,signalingacompetitiveupheavalinthequestfor

audienceattention.And58%placeasmuchtrustinthe

voicesofindependentcontentcreatorsastheydoin

establishednewsoutlets.

Evenestablishedstreamingprovidersfindthemselves

teeteringonthebrinkofsurvival.

ReinventforgrowthintheMediaIndustry:onlytheradicalwillsurviveandthrive

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Copyright?2024Accenture.Allrightsreserved.9

Serialchurnersonarise

60%ofconsumersare

cancelledand

resubscribedtoservices

basedontheavailability

ofdesirablecontent

47%ofconsumers

cancelledmore

subscriptionsin2023

vs.2022

Contentdiscoverycontinuestobe

achallenge

36%struggletofind

somethingentertaining

towatchwhile52%say

recommendedcontent

doesnotmatchtheir

interests

54%spendatleast6

minutesormoretryingto

findsomethingnewto

watch.Since2021,

consumersspending

10+minuteshasdoubled

to30%

THECHALLENGESCLOSINGIN

Figure1:Thecomplex,fragmentedmedialandscape

Consumersleavingtraditional

mediabehind

26%indicatedthattimeon

linearTVdecreasedsince

lastyear,whileincreased

onsocialmedia(52%),

socialvideo(52%),and

videogames(50%)

59%sayuser-generated

contentasequally

entertainingastraditional

media,signalinga

competitiveupheavalin

thequestforaudience

attention

ReinventforgrowthintheMediaIndustry:onlytheradicalwillsurviveandthriveCopyright?2024Accenture.Allrightsreserved.10

THECHALLENGESCLOSINGIN

Newentrants’influenceandimpact

Meanwhile,companiessuchasAmazon,

Google/YouTube,AppleandMicrosoftareinvesting

heavilyinstreaming,gaming,andlivesports.Their

diversifiedrevenuestreamsgivethemasafetynet

thatpure-playmediacompaniesdon’thave(seepage13“ThefinancialsfavorBigTech”).Theirdeeppocketsenablethemtoofferanalluringmixoffreecontent,

exclusiveperks,andcompetitivelypricedsubscriptionservicesthattraditionalmediaishard-pressedto

match.

Forexample,YouTubeandAmazon’sacquisitionsofsportsrightsandcontentstudiosunderscoresBig

Tech'sapproachtoattractuserswithstrategic

contentinvestmentsandadiverseoffering.

BigTechcompaniesarealsopioneeringlifestyle

bundles,suchasAmazon’sPrimemembershipand

Apple’sAppleOnesubscription,whichaugmenttheirmarketpowerandstrategicadvantage.Theysupporttheconsumer'slifestylewithservicessuchasfree

shipping,grocerydelivery,streamingvideoandmusic,photostorage,videogamestreaming,andpharmacyassistance.

Notably,thistrendisnotlimitedtoBigTech.WalmartandRelianceJioinIndiaareextendingintostreaming,

andawiderangeofproductsacrossconnectivity,news,books,movies,music,payments,groceries,devices,education,health,andfinancialservices(inadditiontodeliveryservices,autocare,traveland

fuel).(SeeFigure2.)SocialmediacompanyX,

formerlyknownasTwitter,isequallyevolvingitsofferingsbyaddingvideo,GenAIandfinance

capabilitieswiththeaimofbecominga"superapp.”7

ReinventforgrowthintheMediaIndustry:onlytheradicalwillsurviveandthrive

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Copyright?2024Accenture.Allrightsreserved.11

one

(

(

THECHALLENGESCLOSINGIN

Figure2:LifestylebundlesofferedbyApple,Amazon,WalmartandReliance

Streaming

News

Music

Health

Gaming

Storage

Streaming

Music

E-Books

Groceries

Gaming

DeliveryPrescriptions

walmart><

Streaming

Travel

AutoCare

Fuel

Delivery

Savings

Streaming

Music

Mobile

Groceries

Gaming

VideoCalls

Fashion

Retail

OurReinventforGrowthsurveyindicatesastrongconsumer

interestinsuchcomprehensivebundles.Astrongmajority(83%)

ofconsumerssaidtheywouldbeinclinedtouseasingleappto

accessalltheirdigitalservices.

Weexpectconsumerspendingthroughtheselifestylebundlestoreach$3.5trillionby2030.

Partnershipsinlifestylebundlescouldemergeasastrategic

avenuefortraditionalplayers,offeringastreamlinedpathto

attractandkeepsubscribers.However,theintegrationofbroadernon-mediaconsumerspendingcategorieswithinthesebundlescouldshifttheirperceivedvalue,potentiallycoolingBigTech's

interestinthemediasector.Thetrendtowardbundlingrisks

devaluingmediacontentintheeyesofconsumers,challenging

theirwillingnesstoinvestinmediaelementsofthebundles.

Weexpectconsumerspendingthrough

theselifestylebundlestoreach$3.5

trillionby2030.

Source:Accentureanalysis,Media&EntertainmentStrategyPractice

ReinventforgrowthintheMediaIndustry:onlytheradicalwillsurviveandthriveCopyright?2024Accenture.Allrightsreserved.12

THECHALLENGESCLOSINGIN

ThefinancialsfavorBigTech

BigTechcompanieshavedemonstratedhigherrevenuegrowththanlegacy

mediacompaniesinthepast.

Theyholdhighergrowthexpectationsforthefuture.Forthe2023-25forecastperiod,BigTechisexpectedtogrowatmorethantwicetherateoflegacy

media(10.6%vs.4.8%.)(SeeFigure3.)

Figure3:Financialperformance–traditionalmediavs.technologycompanies

BigTechgrewtheircashfromoperations4xtimesvs.LegacyMediasince2018

($bn)

Source:S&PCapitalIQ:2023referstodataavailableasof

Dec31,2023,SampleSize:21LegacyMediaand12Big-Techcompanies

2.5X

ValuationEV/EBITDA

Techvs.LegacyMedia

?21.0xvs.8.5x(2.5xin‘23)

?16.7xvs.13.2x(1.3xin‘19)

2.2X

Revenuegrowth

Techvs.LegacyMedia

?’23-25:10.6%vs.4.8%(2.2x)

?’17-23:12.1%vs.7.4%(1.6x)

8pp

EBITDAmargin

Techvs.LegacyMedia

?33.3%vs.23.1%(10.2ppin‘25)

?28.1%vs.25.7%(2.4ppin‘18)

4X

Operatingcashflows

Growthduring2018-23

?10.0%Tech

?2.5%LegacyMedia

Copyright?2024Accenture.Allrightsreserved.13

THECHALLENGESCLOSINGIN

Furthermore,legacymedia

companiesreportEBITDAmargins6–8percentagepointslowerthanBig

Tech,agapthatcontinuestowiden.

In2018,BigTechoperatedata2.4

percentagepointhigherEBITDA

margin,whichhasnowexpandedtoa10.2percentagepointadvantage.

Thecashflowcomparisonrevealsasignificantfinancialdividebetweenthetwosectors.

Since2018,BigTechcompanieshaveseenafourfoldincreaseinoperatingcashflowsversuslegacymedia.

Duringthe2018-23period,legacy

media'soperatingcashflowsgrewby2.5%,whileBigTech’sgrewby10%.

Moreover,BigTechismoreefficientingeneratingcashfromoperations,witha2023operatingcashflowasapercentageofrevenuesstandingat26.1%,comparedwith15.1%for

legacymedia—adifferenceof11

percentagepoints.

Inthefaceofconsumershifts,

deterioratingfinancialsandBigTechgame-changers,theurgencyand

existentialnecessitytoreinventhaveneverbeengreater.

Copyright?2024Accenture.Allrightsreserved.14

REINVENTIONIMPERATIVES:WHYRADICALISCRITICAL

Reinventionimperatives:

Whyradicaliscritical

Notallreinventioniscreatedequal.Someoptionsdonotmateriallyalteramediacompany’sfinancial

health,whileothersdo.Wesoughttoidentifyvariousstrategiesthatwouldsolidlypositionlegacymedia

companiesforsuccess,makingthemreadyand

capableofthrivingintomorrow’smedialandscape.(Seethesidebar“SeekingHigh-ImpactStrategies”formoredetails,andthe“AboutourResearch”

sectionattheendofthisdocumentforadditionalinformationonourstudyandmethodology.)

Ourfindingsweretelling.Somemediacompanies

mademovesthatrequiredlowormedium

reinvention.Forexample,someareincreasingtheirlivesportsprogramming.Aswefound,doingsocancertainlylowerchurnlevels.Consumersarespendingabout53minutesperdayonlivesportscontent,andalmosthalf(47%)saidtheyspentmoretimeonlive

sportscontentthisyearthantheydidlastyear.

Similarly,mediacompaniesareformingnewcontentpartnershipstoincreasescale.WarnerBrothers

DiscoveryformedapartnershipwithManchesterCityF.C.topromotethemovie,BlueBeetle,toalarger

audience.ThepartnershippromotedthefilmacrossManchesterCity’ssocialplatformsandattheteam’shomestadium,reachingliveviewersandthose

watchingmatchhighlightsonline

(

/news/club/manchester

-

city-warner-bros-blue-beetle-63827351

).

Ourfindingsindicatethattheselow-to-medium

reinventionstrategiesmayhaveapositiveimpactonviewership;however,theywillnotsignificantlyimpactamediacompany’seconomicprofileorresetits

revenuetrajectory.(SeeFigure4.)

ReinventforgrowthintheMediaIndustry:onlytheradicalwillsurviveandthrive

Seekinghigh-impactstrategies

Witnessingthecontinueddisruptionanddeteriorationoftraditionalindustryeconomics,wedugevendeeperinourmostrecentresearchtopressuretestthethreearchetypesweintroducedlastyearandtoinvestigateothers.

Specifically,weidentifiedandanalyzedmorethan50

differentstrategicoptionsforreinvention.Weassembledtheseoptionsfromarangeofactualinitiativeslaunchedbycompaniesaswellasfromourownstrategicanalysis.Theoptionsvaryfrommodestdistributiontacticsandcost-

cuttingtocorporaterestructuringorenteringanaltogethernewmediasegment.Then,usingourMediaReinvention

Scale,wemeasuredtheextenttowhichanoptionmightrequireacompanytochangeitscurrentfinancialor

operatingmodel,anditscapabilities.

WethenevaluatedtheoptionsusingourMediaThrive

Indextoassesstheextenttowhicheachoptionoffersa

companyfinancialandstrategichealth.ThehighestpossiblescoreontheThriveIndexis5,andwefoundthatthe

averagescoreacrossalltheoptionswas2.5.Onlyasmallpercentage—themostradicaloptions—scoredabove4.

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Copyright?2024Accenture.Allrightsreserved.15

#07FormNewContentPartnerships

Publishing

Gaming

Audio

Video

?IncreasesbrandandIPmindsharethroughnewmarketingpromotions

?Strengthensaudiencetrustandbrandreputationthroughpartner’sbrand

?Activatessameoradjacentaudiencesinadifferentmediasetting

Levelof

Reinvention

Low

?Activatingsameaudiencethroughcollaborations

?Coreproductremainsthesame

?Valuechaincomponentsdon’tchange

?Noreorganizationoradjustmentneeded

ThriveIndexScore

0.7/5

?Mightonlyaddnewrevenuethatbalancesoutchurn

?Doesnotdriveprofitability

?Doesnotprovidediversification

?Doesnotaddnewskillsandcapabilities

?Doesnotprovideaccesstonewgrowthmarket

Applicability

INDUSTRY

REINVENTIONIMPERATIVES:WHYRADICALISCRITICAL

Figure4:Examplesoflowandmediumreinventionmoves

#05AddLiveSportstoContentPortfolio

?Increasesretentionbytappingintoapopularandstickycontentgenre

?Broadensofferingbeyondvideoondemandtoincludeliveformats

?Allowstocross-referencesportsdocumentariestolivesportsviewers

Levelof

Reinvention

Medium

?Mainandadjacentaudiencesbeingtargeted

?Productexpandsandnewfeaturesmightbeadded

?Valuechainrequireslivebroadcastingcapabilities

?Operationalchangesneededtoincorporatesportslicensingandtechsupporttostreamingstructure

ThriveIndexScore

2.7/5

?Primarilyincreasesretentionandnotrevenue

?Doesnotincreaseprofitabilityconsiderably

?Doesnotprovidediversification

?Addslivestreamingcapabilities

?Providesaccesstoapopularandstickymarket

Publishing

Gaming

Audio

Applicability

INDUSTRY

Video

Copyright?2024Accenture.Allrightsreserved.16

REINVENTIONIMPERATIVES:WHYRADICALISCRITICAL

Otherstrategicoptionsmadeagreatdifference.Forexample,

twostrategiesthatrequiredradicallevelsofreinvention

scoredhighonAccenture’sThriveIndexbecomeparticularlyrelevant:mergingwithagamingstudioandbuyinga

connectedTVoperatingsystemprovider.

Mergingwithagamingstudio:50%ofrespondentswe

surveyedreportedanincreaseintheirvideogameplaying

time.Mergingwithagamingstudiowouldgivecompanies

accesstoarapidlygrowingsegmentoftheentertainment

industry,allowingforengagementwiththeaudiencethroughanothermedium,ultimatelycoveringmoregroundwhenit

comestoscreentime.

Netflix'sestablishmentofitsownmobilegamingdivisionand

Disney'sacquisitionofa$1.5billionstakeinEpicGamesareexamplesofhowvideo-focusedmediacompaniesare

expandingtheirreachintotheburgeoninggamingindustry.

BuyingaconnectedTVoperatingsystemprovider:A

sizable40%ofrespondentsAccenturesurveyedoftenuse

cross-servicesearchenginestonavigateandfindtheirdesired

contentandservices.Atthesametime,CTVadspendwillgrowby22.4%in2024,accordingtoInsiderIntelligence,makingitacompellingstrategyformediacompaniesto

acquireaCTVOSprovider.

Acquisitionsenablemediacompaniestodominatethe

gatewaytostreamingcontent,asusersincreasinglyintroduceprogramsdirectlythroughtheoperatingsystem.Additionally,asarticulatedinourComplexConsumerreport,aconsumerlooksdifferenttoeachservice.Thus,ownershipandvisibilityintoconsumptiondataacrossservicesdramaticallyenhancescontentrecommendationsandtheprecisionoftargeted

advertising,leadingtoincreasedadvertisingrevenue.

ComcastpartneredwithCharterCommunicationsin2023tolaunchXumo,whichintroducedaConnectedTVoperating

systemthatisfullyintegratedwithstreamingservices,gamingandmusicapps,radiostationsandmore.

Walmartalsoenteredthespacethroughitsacquisitionofsmart-TVmakerVizioin2024,largelytoexpanditsretailmediabusinesstocompetewithAmazon.(SeeFigure5.)

ReinventforgrowthintheMediaIndustry:onlytheradicalwillsurviveandthrive

Mergingwitha

gamingstudio:

50%

ofrespondentswesurveyed

reportedanincreaseintheir

videogameplayingtime.

BuyingaconnectedTV

operatingsystemprovider:

40%

ofrespondentsAccenture

surveyedoftenusecross-

servicesearchenginesto

navigateandfindtheirdesired

contentandservices.

Copyright?2024Accenture.Allrightsreserved.17

#46MergewithaGamingStudio

Publishing

Gaming

Audio

Video

?AccesstovideogameIPtodevelopnewfilms

?LeveragevideogameIPtosellphysicalmerchandise

?Establishcross-segmentbundleofferingthatincludesgaming

?Leveragegamingandfilmaudiencesformarketing

Levelof

Reinvention

Radical

?Requirestargetinganewaudienceanddemographic

?Shiftstonewproductsandservices,incl.bundles

?Movesintoanewsegmentvaluechain

?Necessitatesaneworganizationandoperatingmodel

ThriveIndexScore

4.8/5

?Drivesnewsalesinanewmarket

?Highermarginbusinessaccess

?Diversificationofrevenuestreams

?Newcapabilities,e.g.,tocreateimmersiveworlds

?High-growthmarket

Applicability

INDUSTRY

REINVENTIONIMPERATIVES:WHYRADICALISCRITICAL

Figure5:Examplesofradicalreinventionplays

#24bBuyaConnectedTVOSProvider

?Accesstoviewerconsumptiondatafromcontentdiscoverythroughcancellation

?LeverageintegratedcommercefunctionalitiesfromappmarketplaceonOS

?AdditionalcashflowfromOSlicensingand/orconsumerelectronicsales

Levelof

Reinvention

Radical

?Requirestargetinganewaudienceanddemographic

?Shiftstonewproducts,incl.hardwaresales

?Movesintoanewsegmentvaluechain

?Necessitatesaneworganizationandoperatingmodel

ThriveIndexScore

4.6/5

?DrivesnewrevenuefromTVsalesandOSlicensing

?HigherARPUfromenhancedadtargetingcapabilities

?Addsnewaudienceswithinconsumerelectronics

?Enablesseamlesssoftware-hardwareintegrations

?Highergrowthmarket

Publishing

Gaming

Audio

Applicability

INDUSTRY

Video

Copyright?2024Accenture.Allrightsreserved.18

REINVENTIONIMPERATIVES:WHYRADICALISCRITICAL

Boththesehigh-scoringstrategieswouldrequireradical

changeformostlegacymediaorganizations,whichbringsustowhatwebelievearethetwokeystosurvivalandsuccessforlegacymediabusinesses:getradicalandgetoutsideyourcomfortzone.

Getradical:Amongoverfiftystrategicalternativesevaluated,onlythoseconsidered"Radical"onourMediaReinvention

Scalemanagedtoachieveara