The media industry, including Over-The-Top (OTT) platforms, is navigating a complex
landscape marked by evolving consumer behaviors, technological advancements, and intensified
competition. Network companies are actively developing strategies to retain customers and adapt
to these changes. Here's an overview tailored to your upcoming business analyst interview at
Genpact:
Challenges in the Media and OTT Industry:
1. Declining Traditional Viewership: Traditional media outlets are experiencing a
decrease in audience numbers as consumers shift towards digital and on-demand content.
For instance, Sky News is overhauling its newsroom to focus more on digital services
and premium paid content to counteract declining TV audiences.
ft.com
2. Revenue Model Disruptions: The traditional advertising-based revenue model is under
strain. Media companies are exploring alternative revenue streams, such as subscriptions
and premium content offerings, to remain financially viable. The magazine industry, for
example, has seen a resurgence by focusing on luxury segments and innovative projects.
theaustralian.com.au
3. Trust and Credibility Issues: Public trust in traditional media has waned, leading to a
decline in influence and reach. This has prompted media outlets to reassess their content
strategies and engagement approaches.
nypost.com
4. Technological Integration: The rapid advancement of technology, particularly artificial
intelligence (AI), is reshaping content creation and distribution. OTT platforms are
leveraging AI to enhance user experiences through personalized content
recommendations and improved accessibility features.
storyboard18.com
Network Companies' Strategies for Customer Retention:
1. Bundled Service Offerings: Telecom companies are bundling services like 5G mobile
and high-speed fiber to provide comprehensive solutions, enhancing customer value and
reducing churn. AT&T's recent success in boosting subscriptions is attributed to such
bundled offerings.
reuters.com
2. Investment in Advanced Infrastructure: Significant investments in 5G infrastructure
aim to improve service quality and meet growing data demands. Verizon, for example, is
heavily investing in 5G to enhance its offerings and stay competitive.
reuters.com
3. AI-Driven Customer Engagement: Companies are partnering with AI firms to develop
platforms that enhance customer service and predict churn. T-Mobile's collaboration with
OpenAI to create an AI platform for improving customer retention exemplifies this
approach.
wsj.com
4. Gamification Strategies: Incorporating game-like elements into services can boost
customer engagement and loyalty. Gamification transforms routine interactions into
interactive experiences, fostering deeper connections with customers.
digitalvirgo.com
5. Personalized Customer Experiences: Utilizing Customer Data Platforms (CDPs) and
AI, telecom operators can offer personalized services and proactive support, enhancing
customer satisfaction and loyalty.
lemnisk.co
Advancements and Strategic Changes:
AI Integration: AI is playing a crucial role in content personalization, customer service
automation, and operational efficiency. OTT platforms are using AI to analyze viewing
patterns and deliver tailored content, while telecom companies employ AI to predict
customer behavior and personalize interactions.
storyboard18.com
Focus on Regional and Family-Friendly Content: There's a growing emphasis on
producing content that appeals to regional audiences and families, catering to diverse
viewer preferences and expanding market reach.
storyboard18.com
Enhanced Accessibility Features: Implementing AI-driven features like real-time
translations and dubbing makes platforms more inclusive, broadening their audience base
The global entertainment and media (E&M) industry is a significant and rapidly evolving sector.
In 2023, the industry's revenue reached approximately $2.83 trillion, marking a 5% increase
from the previous year. Projections indicate that by 2028, the market will expand to around $3.4
trillion, driven by growth in advertising, streaming services, and emerging markets.
statista.com
pwc.com
The online entertainment segment is experiencing notable growth. In 2024, it was valued at
$99.98 billion and is projected to grow from $111.30 billion in 2025 to $261.23 billion by 2032,
exhibiting a compound annual growth rate (CAGR) of 12.96%.
fortunebusinessinsights.com
The U.S. media and entertainment industry remains the largest globally, valued at $649 billion in
2023, and is projected to grow to $825 billion by 2025.
trade.gov
Recent years have seen significant mergers and acquisitions in the entertainment sector:
Disney and Reliance Industries Merger (2024): Walt Disney Co. and Reliance
Industries Ltd. merged their Indian media assets in a deal valued at $8.5 billion. This
merger created India's largest entertainment entity, encompassing 120 TV channels and
two streaming services, positioning it to compete with major players like Sony, Netflix,
and Amazon.
reuters.com
Cedar Fair and Six Flags Merger (2024): Cedar Fair merged with Six Flags
Entertainment Company in a deal valued at $8 billion, consolidating two major
amusement park operators.
dealroom.net
Sony's Strategic Investments: Sony has been investing heavily in original content
creation, aiming to transition from a technology-focused company to a leading
entertainment firm. Over six years, Sony invested $10 billion into its gaming, film, and
music divisions, which now generate 60% of its annual revenue.
ft.com
These developments reflect the industry's dynamic nature, with companies pursuing strategic
mergers and investments to enhance their market positions and adapt to evolving consumer
preferences.
