This article provides a statistical overview on Entertainment and Media companies showcasing how the industry might have its struggles keeping up with the economy while also using accumulated data to narrow down shifts in that provide a range of opportunities of potential growth. According the data the biggest shifts are taking place in five areas, which are:
4. Business models
When taking demographics into account what is known is that younger consumers have rapid rate of adopting new consumption methods and being able to balance their usage of multiple forms of media. Companies may have an easier time in marketing towards and older audience however it is the younger consumers that will propel the E&M industry forward. Reason for this being that younger people consume media to a greater degree that would suggest that they are more susceptible to digital spending.
The opportunity that presents itself is for the media companies to examine and understand the spending pattern of youth, on digital media. This would then enable them to predict outcomes such as when consumers may swap from paying for music downloads to streaming music. An amount of older, less digitised markets, are still present and are considered significant due to their size and growth. These markets however depend on older media technologies that have a number of consumers that are costumed to using this kind of technology, which would allow profit sustainability for some time. However there is a level of management required as focus solely on new technologies could alienate the older consumers.