With media and entertainment sectors continuing to be whipped by winds of digital disruption, many industry execs believe they need to change the ways they’ve done business — or see their companies perish.
About 50% of M&E executives said their company cannot rely on traditional business models to survive the shifting landscapes, according to a new survey by consulting and professional services firm EY. Indeed, 34% of those surveyed indicated that their company will no longer exist in five years unless their business undergoes reinvention.
The survey identified three key factors driving change across M&E industry subsectors: responding to a new competitive landscape; struggling to keep pace with technology as businesses evaluate digital innovations, such as artificial intelligence and 5G; and dealing with challenges associated with changing customer expectations. Nearly two-thirds (63%) of execs embarking on change say optimizing the operating model will be truly transformational – but at the same time, 28% said they don’t know what steps to prioritize in pursuing such a strategy, according to the EY survey.
But the leadership for business change doesn’t necessarily come from the top: Only 20% of the execs EY surveyed cited current corporate strategy and their CEO’s vision as a leading driver of innovation.