Here are some of the most important consumer, technological and ecosystem trends, such as business telephony solutions, that are shaping digital innovation in the media industry.
The global middle class is expected to grow from 1.8 billion in 2009 to 4.9 billion in 2030. There is increased demand for new media services that focus on education, convenience, premium content and video-on-demand, especially in the growing economies. Millennials (people born between 1981 and 1997) have created a demand for technology services offering memorable experiences, convenience and instant access to content.
The world’s population is ageing thereby demanding better health and wellness, education and entertainment services for older people. As such urbanization will lead to an increased demand for different media offerings designed to cater to people’s busy work lives and commutes.
2. New Consumer Behaviors and Expectations
The demographic shifts have resulted in a huge dramatic impact on what consumers expect from the media, how they consume it, their familiarity and savviness when it comes to navigating the digital world.
• With the changing consumer expectations and behaviours, the younger generations are always keen to consume content from different areas of the world. Their expectations require instant gratification especially when they need to access content faster. The boundaries between various industries are blurring so customers judge their experience of service not against competitors in that specific sector but from the services offered in other industries.
• As for editorial content, advertising and propaganda, consumers have become better at noticing PR and marketing spins disguised as editorial content. A lot of internet users rely on ad-blocking software forcing marketers to change their tactics. Now, they are engaging customers through storytelling and providing useful information about their brand.
• With regard to content creation and delightful experiences, consumers appreciate having someone who can curate content for them. Basically, it is what editors do with paper magazines. Native advertising platforms and clean mobile reading experiences are looking for new and savvy audiences, enhancing the overall user experience and allowing publishers to charge a premium to advertisers.
• As for security, trust and privacy, consumers have become aware that their daily lives have become data that can be easily analysed and monetised by third parties. With complicated and opaque privacy policies as well as customisation algorithms, consumers might be prompted to switch to services offering better data privacy and transparency.
3. Ecosystem Challenges
The media industry is adapting to the changing habits of its customer base. As such, there have been numerous changes to the landscape of the media sector. These include the following.
• Startup Disruptions – Startups have bloomed globally thanks to access to technology, talent and the right attitude to change the world. As a result, there are new businesses and lean models. Once they reach scale, they invest in boosting the quality of their content and offering new services thereby putting a lot of competitive pressure on traditional media companies. Everybody has become a content creator and various brands and organizations have become broadcasters looking for consumer attention.
• Access to Financial Resources – Creative people are now looking for ways to get funding for their new products or services. Content creators are not using traditional media companies. Rather, they are using innovative ways such as crowdfunding.
• The Transformation of Work – Digital transformation will have a huge impact on employment thereby creating demand for highly skilled digital roles but make some job categories redundant. The workforce is adapting to the digital economy so there is a need for lifelong learning to keep up with the evolutionary pace of technology.
• Regulatory Uncertainty – Legal frameworks associated with intellectual property are not prepared to handle a new generation of content consumers who expect instant access to content from anywhere in the globe. Therefore, a lot of users rely on unconventional means to access content such as using VPNs.
These trends have completely shaped the media industry and will continue to do so for a long time.