Identifying the Media Industry’s Differentiating Business Processes

Objective

After completing this lesson, you will be able to identify differentiating business processes and activities that are part of the value chain for the Media industry.

Media Differentiating Business Processes

This lesson will cover business processes and activities that are part of two sub-processes within the value chain: Audience Insights and Content Financials.

Audience Insights: Driving Customer Engagement

This image contains a table, depicting what makes a good, regular, and bad customer experience. If a customer is to deliver a good customer experience, media companies must deliver great content, a good user experience, and great value. To deliver a mediocre experience, companies may deliver great content and great value, but a bad user experience (for example). These elements are interchangeable. Finally, to deliver a bad customer experience, companies may deliver great content, but a bad user experience and bad value for money.

Audiences want great content, experiences, and value, as detailed in the previous image. Without these three key elements, the customer experience may be mediocre, or even bad, and as a result, negatively affect customer engagement. Media companies drive customer engagement through by delivering compelling content and a unique experience while maintaining competitive pricing in a demand-constrained economy.

  • Content: Media companies must deliver exciting, relevant content tailored to their audiences or individuals.
  • Experience: Consumers want easy ways to access, consume, and engage with content. Media companies strive to provide user-friendly platforms, making it simple to find and enjoy content anytime, anywhere, and on any device.
  • Value: Companies monetize media content in different ways. They might offer free content supported by ads, paid content you can buy or rent, or unlimited viewing subscription services. It is a competitive market, with many media companies vying for finite audiences. Media companies aim to increase their value by:
    • Offering exclusive content
    • Boasting huge content libraries
    • Keeping ads minimal, targeted, and relevant for free content

Content Financials: Title Lifecycle Management

This image shows how finance is at the center of enterprise transformation. The process flow shows customer experience transformation at the left, content supply chain experience at the right, and finance transformation in the middle. Each of these areas are depicted by pictograms: a user figure for customer experience transformation, cash for finance transformation, and storage cloud for content supply chain transformation.

Title lifecycle management involves managing a media asset from inception through its eventual retirement or archival. It is intrinsically linked to enterprise transformation in media companies, as progress in key areas rely on effective lifecycle strategies. Key areas include customer experience, content supply chain, and finance.

In Customer Experience, title lifecycle management aids in acquiring and retaining profitable customers by ensuring the delivery of relevant and engaging content. It enables the monetization of customer insights and helps build trust and loyalty through tailored content delivery.

Within Content Supply Chain, title lifecycle management optimizes content acquisition and production, driving maximum value from content assets. By leveraging new business models and revenue streams, organizations can ensure the efficient utilization of their media assets.

At the core of digital transformation, Finance acts as the control center for media businesses. Progress in the content supply chain and customer experience relies on finance adapting to new business models, understanding content profitability, and enabling data-driven decisions. Most companies start their transformation journey with finance.

Key Use Cases:

  • Managing revenue and partner revenue shares
  • Handling subscription and usage-based models
  • Consolidating accounts receivable (A/R) subsystems for advertising, billing, and content profit and loss (P&L)
  • Analyzing and comparing content profitability

Lesson Summary

Media and Entertainment companies are transforming in three key areas: content supply chain, customer experience, and finance, with finance acting as the control center. Transformation begins with adapting to new business models, understanding content profitability, and enabling data-driven decisions. Essential use cases include managing revenue shares, handling subscription models, consolidating accounts receivable systems, and analyzing content profitability.

To drive customer engagement, media companies focus on delivering great content, creating seamless user experiences, and providing value through strategies like offering exclusive content, maintaining extensive content libraries, and optimizing ad placement for minimal disruption.

Log in to track your progress & complete quizzes