In 2022, media and entertainment companies notice a familiar landscape influenced by consumer behavior dynamism, technology, competitive intensity, and industry reshaping. Blend the continuing outcomes of the pandemic on business conditions and the workforce, an inflationary economy, and a charged social and political landscape, and company leaders are steering through unpredictable terrain. Allow me to share five trends to observe in ahead as the industry actively works to reframe its future.

1. Content distribution gets (more) complex
Investment in new original content shows no sign of slowing even as move into 2022. Content is the fuel that drives consumer interest and engagement across platforms - streaming, broadcast and cable networks. What sort of content reaches consumers, however, often involves a complicated decision-making process.

The direct-to-consumer (D2C) pivot will still be the key strategic priority to the industry from the coming year. Operators and investors alike are centered on subscriber growth and retention as the key performance indicators for services where switching costs for consumers are minimal. Despite their rapid growth over the past couple of years, most D2C services run by media companies remain unprofitable and consume cash, devouring resources from the overall enterprise.

The administrative centre intensity connected with streaming highlights the significance for media companies to reap the financial making use of your linear ecosystem. At the same time cord cutting gradually shrinks the universe of traditional video subscriptions, broadcast and cable networks remain cash flow engines. In order to avoid a dislocated unwinding with the legacy pay-TV environment and its valuable monthly subscriber fees and advertising revenues, network owners must continue to direct fresh content, including sports, for their linear channels to keep viewers engaged.

In the year ahead, operators (particularly those without the scale or capital resources to travel truly “all in” on streaming today) will be up against challenging decisions around programming their streaming platforms they are driving growth, as well as remaining profitable but structurally declining linear businesses to get cash flow. This can be a tricky joggling act.

Acting on these decisions requires sophisticated modeling and disciplined business planning that spans creative and executive priorities to own optimal mix of growth and financial outcomes.

2. Simplified and customized experiences take center stage
In 2022, consumers continuously find unique experiences and ubiquitous entry to entertainment content. Companies that solve the discoverability puzzle and aggregate content in the more intuitive and accessible way will rise to the top.

Consumers expect effortless interactions through the entire end-to-end customer journey, from sign-up to usage and billing. Accordingly, we will see more companies participating in the streaming value chain. Network owners, broadband providers and connected TV manufacturers is going to be taking steps to simplify, optimize and integrate layers and compatibility tools across platforms to enhance an individual experience.

Content discovery is now increasingly a hardship on consumers while they bounce between streaming services trying to find new series and old hits one of many avalanche of accessible programming. Tech-savvy businesses that harness valuable viewership data to offer customers many content they want will like a competitive advantage. In 2022, streamers playing catch-up will refine their recommendation engines according to demonstrated subscriber preferences and usage history, and tailor their marketing - in-platform and also over external channels - to create consumers aware of each of the viewing options.

Bundling could also improve the buyer. The scaled digital-native streamers provide a number of integrated offerings to their video subscribers - shopping, gaming, devices, along with other digital services. Media companies with diversified businesses or innovative partnerships with third parties - including from the digital asset arena (e.g., non-fungible tokens, or NFTs) - will aim to create their particular “flywheels” that offer a portfolio of offerings for their streaming subscribers, driving new sign-ups and adding stickiness to the D2C revenue model, extending the life of the customer relationship.

An in-depth lineup of desirable programming is table stakes for your streaming game. In a environment where rrndividuals are juggling a growing number of services and switching cost is low, media companies have to deliver an event that keeps subscribers connected and engaged.

3. Movie night will go back to the theatre
The results of the pandemic for the movie business have already been severe. Cinema owners struggled to remain open as moviegoers stayed away because of virus concerns and limited availability of fresh film product. Even though the emergence from the Omicron COVID-19 variant is adding uncertainty, you can find signals pointing into a constructive path forward to the box office in 2022.

In 2021, 13 films grossed over $100 million based on Box Office Mojo, down from over 30 in 2019. Nonetheless, brings about 2021 indicated an enduring audience appetite for “blockbuster” features as reopening across the nation gained steam, prompted partly by the distribution of effective vaccines. Looking ahead, a robust slate of long-anticipated tentpole movies will help drive the recovery in theatre admissions.

An alteration that can hold in 2022 may be the abbreviation from the exclusive theatrical window to approximately 45 days and, for many mid-size films, a day-and-date release approach that allows people to view new movies from the theatre or in your house. After having a difficult compilation of negotiations between theatres and studios, the show industry may have aligned by using an approach that preserves the features of the theatrical window while acknowledging the reality of streaming popularity.

The shorter first-run window will permit studios and theatres (and creative talent) to gain from successful major releases - namely the large ticket sales that come about on opening weekend and the following a few months, in addition to the ability for studios to leverage marketing spend in support of a film’s premiere into future distribution windows, specifically fast-following D2C availability.

4. NFTs have entered the press chat
Excitement is building around NFTs like a vehicle for media companies to grow engagement using content and IP and may even give you a future monetization model as the market matures.

Early adopters are getting NFTs connected to sports, art, collectibles plus much more, acquiring one-of-a-kind digital assets which might be easily tradable and whose ownership and authenticity are recorded via blockchain technology.

To sign up the action, media publication rack forming relationships with NFT technical specialists and marketplaces to formulate offerings that enable consumers to participate in a wholly new way with their superheroes, movie and television show scenes and other content. NFTs allow media industry players to generate cross-platform consumer interactivity anchored in proven IP also to build new communities by extending the customer relationship into emerging digital areas.

In 2022, the media and entertainment industry will undertake a lot of NFT innovation and experimentation. Auto return of these efforts is unclear; today, NFT projects in media and entertainment space are essentially marketing investments intended to power engagement and also to access fans - particularly those active in crypto - wanting to deepen their association with popular content. Later on, media companies could generate royalty income linked to secondary sales of NFTs… perhaps in transactions linked with activities taking place in the metaverse.

5. M&A remains a favorite item about the menu
Over the last Twelve months, the media and entertainment industry saw the largest players execute on the various transactions - landscape-shifting megamergers, bolt-on acquisitions of smaller studios including properties situated in international markets that produce localized content, targeted deals for niche IP assets that can be leveraged to generate fresh programming, and innovative joint ventures supposed to accelerate global streaming growth with a capital-efficient basis.

In 2022, the consolidation of studios and networks continues as companies look to build the content, capabilities and scale had to battle the digital-native behemoths who make use of tremendous financial and operational advantages.

After deal headlines fade, management teams will face the heavy lift of integration, right-sizing and realigning front office operations, IT systems and corporate infrastructure to achieve ambitious efficiency goals. Cost savings realized through integration will fund future growth investment and boost profits, an integral objective since the industry transitions in the stable, high-margin linear world with a streaming ecosystem that drives less-profitable revenue (for the time being).

Robust conditions privately and public capital markets are enabling companies to sell non-core businesses and other corporate assets that no longer fit their evolving growth strategies or capital allocation priorities. Accordingly, asset divestitures will be a key trend in 2022 as well. Activist investors may play a task in some of those transactions, in the role of another catalyst for change.

The media and entertainment industry has long been a whirlwind of strategic activity as companies build, renovate and tear down business portfolios as a result of market developments, and 2022 won't be any different. These five trends indicate the media industry is poised for the next year of exciting change, as companies drive innovation, tackle new challenges and capture possibilities to position themselves for growth.


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