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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.
“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.