Growing demand for streaming services means media and entertainment companies are exploring new ways to expand the reach of their content. Does the changing landscape create new opportunities for investments?
The digital revolution has had a dramatic impact on the media and entertainment industry in recent years, giving consumers access to a huge range of content and information whenever they want it.
In this panel, we will be discussing what opportunities the changing media and entertainment industry may create for investors, and some of the risks involved.
- With increasing numbers of households use streaming services such as Netflix and Amazon Prime to access the content they want anytime and anywhere, and read the news online, either on phones, laptops or tablet, rather than buying a newspaper. According to Bloomberg Intelligence, 2017 is likely to be the worst year for conventional pay-TV subscriber losses in history, surpassing the 1.7m customers lost in 2016. Among the biggest companies that form part of this trend is Netflix, which was one of the first companies to market a streaming service in 2007. The company was originally founded in 1997 to offer online film rentals, and then debuted a subscription service in 1999 offering unlimited DVD rentals in return for a monthly payment. Its streaming service is now available worldwide and has 109m members in over 190 countries. How do you hold on to paying household clients?
- Companies worldwide are busy increasing their investment in online streaming platforms to keep up with today’s ‘on-demand’ world. Is there strategy to convert all households to streaming platforms offered exclusively by the local providers?
- Amazon is investing heavily in Prime Video, with analysts estimating a budget of around $4.5bn for its Prime Video service. Amazon in December 2017 partnered with Apple Inc, so that the Amazon Prime Video app could be brought to Apple TV in more than 100 countries worldwide.
- The growth of content streaming services has affected private broadcast companies, which have reported falling advertising revenues. ITV, for example, saw advertising sales fall by 4% in the third quarter of last year. What are the available revenue steaming? How do you address the drop in ad revenue?
For Investors –
- The growing access to a myriad of devices, such as smartphones, smart speakers, connected cars and connected homes, enables people to be online virtually anywhere and anytime, consuming music and television shows on-the-go. And it is this fundamental shift in consumer behavior and technological advancement that’s driving the rapid growth of music and video streaming, along with the rising importance of data and its ability to alter the creation and delivery of all media types. How do you approach the market giving its rapid growth rate?
- The coming year will bring a multitude of new utilization of technologies to the forefront. It’s expected that voice-controlled technology will take on a much larger role in the near future, following the success of Amazon’s Echo smart home device and the company’s Alexa personal assistant. Forthcoming innovations in voice tech hold the potential to radically alter the manner in which consumers search for and listen to music, resulting in an even bigger impact on revenue moving forward. Machine learning and artificial intelligence will increasingly penetrate the media industry, as the analytical sector develops innovative solutions to make data input actionable. How much of your investment capital will go towards AI driven technology? and what are the expected challenges that you see?