Gartner Blog Network

Media and Entertainment based Organizations: Time to pry more those IT dollars out of your wallet

by Ted Chamberlin  |  May 7, 2018  |  Submit a Comment

For most enterprises, digital transformation is about delivering innovation and growth through powerful new technologies. The adoption of new technologies enables net-new business models; however, not all enterprises look at innovation with the same lens.
So I generally see a divergence with our M&E pals and its not a feel good trend…………….
 Enterprises in the digital brands, content, media, broadcasting and video production space have unique challenges focused around delivering and securing their content. This has forced many of these organizations to take a slower, more measured path to digital transformation through continual investments in keeping the lights on and less around delivering business value. Media and entertainment (M&E) organizations’ average IT spending as a percentage of revenue declined to 4.6% in 2017, down from 5.4% in 2016. This metric alone does not constitute a definitive trend, but it’s indicative of a segment that has to embrace transformation and focus more on efficient operations.340613_0001 
IT Key Metrics Data 2018: Key Industry Measures: Media and Entertainment Analysis: Multiyear
The most common response I hear from M&E companies is that they have dedicated, fiber based ingestion and compute platforms that work just fine; why fix what is not broken?
They also are are hesitant to over invest in projects like OTT platforms that generally are do not provide net new revenue but help in subscriber retention.
All logical arguments if consumers of entertainment- gaming, content and video- were NOT changing their viewing and consumption habits.
As cords get shaved and eventually cut in many geographies; its those companies that invest in transforming their digital platforms that will be best positioned to pivot.

Additional Resources

View Free, Relevant Gartner Research

Gartner's research helps you cut through the complexity and deliver the knowledge you need to make the right decisions quickly, and with confidence.

Read Free Gartner Research


Tags: digital  media  ott  

Ted Chamberlin
Research VP
18 years at Gartner
23 years IT Industry

Ted Chamberlin is a research Vice President at Gartner, where he is part of the Cloud and Communications group in TSP. His research focuses on the emerging cloud and hosting communications services like IaaS, PaaS, SaaS, colocation, application hosting, streaming and video content platforms, streaming and IoT and software-defined networking. Mr. Chamberlin has experience working with all size organizations from larger multinationals to early stage startups. Read Full Bio

Leave a Reply

Your email address will not be published. Required fields are marked *

Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes, with attribution to Gartner. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.