Examining the Media Industry Value Chain

Objective

After completing this lesson, you will be able to examine the value chain of the Media industry and how business models are evolving.

End-to-End Value Chain for Media and Entertainment Companies

In this video, you will analyze six main sub-processes of the end-to-end value chain for media and entertainment companies.

How Business Models are Evolving

This image depicts a table listing how the old model (wholesale via partners) compares to the new model (Direct-to-Consumer distribution). In the past, the content producers (or studios) would create content. Then, the content distributors (tv network and streaming services) would deliver the content and experience to consumers. With direct-to-consumer distribution, the content producers and streaming services both create content and deliver content directly to consumers.

Over the past decade, the Direct-to-Consumer (D2C) trend has significantly grown in the media industry, especially in film.

  • Old Model: Traditionally, entertainment studios would create or produce content and license it to distributors. These distributors, not the studios, had direct contact with consumers and managed the entire content engagement experience.
  • D2C Model: Now, studios don't just create content - they also distribute it directly to consumers via new digital platforms. Media companies can now control or influence all aspects of content engagement:
    • Creating great content
    • Delivering a seamless user experience
    • Providing great value

This shift allows media companies to have a more direct connection and engagement with their audiences.

Lesson Summary

This lesson explores the six main sub-processes in the media and entertainment value chain:

  1. Content Development: Collecting and evaluating ideas for content, setting budgets, defining scope, writing scripts, and arranging talent contracts
  2. Produce Content: Setting up production projects, finalizing budgets, procuring materials, organizing labor, and managing production costs
  3. Post Production: Completing production, closing projects, and preparing content for monetization
  4. Distribute and Monetize Content: Delivering content to customers (B2B and D2C), managing rights, and supporting various revenue models
  5. Audience Insights: Using data to understand consumer needs, improving experiences, and building relationships
  6. Content Financials: Forecasting performance, managing revenues, and conducting profit and loss analysis

Over the past decade, the D2C model has significantly grown, allowing studios to distribute content directly to consumers, enhancing content engagement and value.

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