The Revenue Streaming Redefining Entertainment Industry
With digitization being introduced into our lives, it has permanently reshaped the global media and entertainment ecosystem. Content has become more immersive, and it is available on demand for the users. For long now, TV networks cannot depend on one, two, or even three sources of reliable revenue. To make profitable growth, users have to depend on at least 6-7 revenue sources that offer fluid sources of bets on business and products that go beyond traditional sources of monetization.
The entertainment and media sector are launching live events and podcasts, creating subscription offerings, making videos for consumer and brands, and expanding e-commerce and product licensing effort.
A lot of successful E&M companies have benefitted through multiple revenue streams by carrying fee and advertisements for pay for the TV networks, tickets, and cinemas. The traditional sources of revenue sourcing and collecting are becoming obsolete day by day, and the digital platforms are absorbing most of the digital growth. On the other hand, many companies are hugely reliant on the legacy media revenue streams, but that is also dying down. Due to such challenges, some of the companies are making their own revenue channels in terms of subscription services, digital micro-transactions, memberships, consumer products, live events, and advanced advertising.
To build new revenue systems, it is required to make significant changes in strategy, operating models, and the culture of the companies that fall under the Entertainment and media sector.