Digital Transformation In Media & Entertainment Industry – Impact & Trends

Embracing the Digital Transformation in Media & Entertainment
March 17, 2021 | 6 min read

Digitization has completely changed the way we consume, connect, and communicate today. From downloading apps for quick services and products, to streaming content on smart TVs, or interacting with mixed reality devices, it’s no wonder that the media and entertainment industry has been at the cusp of rapid transformation. 

In recent years, digital disruption has upended several traditional business models within the media and entertainment (M&E) industry as consumer expectations are shifting drastically and are driving companies to identify ways to quickly deliver content with the effective use of new technologies. 

With the outbreak of COVID-19, the media and entertainment sector moved swiftly in response to the pandemic by offering free entertainment subscriptions, producing online concerts virtually, e-gaming, and releasing movies online, to name a few. Now as the world adjusts to a new normal, consumer behavior is rapidly evolving. Our social lives have moved online and entertainment consumption has risen notably within the at-home segments of television, online gaming, and over-the-top (OTT) content. Certainly, the COVID-19 pandemic acted as a catalyst for accelerating digital transformation and causing an increase in demand for media and entertainment software solutions. 

Now let’s have a look at the current state of the media and entertainment industry then we will explore how certain companies are working to better understand their users and evolve their digital experiences to meet new expectations, and how you can too.

Impact of digital transformation in Media & Entertainment industry

Content consumption across media channels, devices, and demographics is on the rise. Due to unprecedented internet usage and adoption of internet-enabled devices, consumers are now at the heart of a digital ecosystem in which they actively create, distribute and consume content. The new-age consumer not only demands what they like, which format they like but also wants to customize the content to their preferences. Now media and entertainment companies are no longer able to simply rely on the extent of their reach to appeal to the masses. 

It’s no wonder the media and entertainment industry has been turned on its head recently due to technology. According to research from PwC, by 2023, revenues for the global entertainment and media industry are expected to reach 2.6 trillion.

media & entertainment pwc research

As everyone continues to research and invest in M&E digital transformation strategies, it’s also worth looking at what’s driving the urgency. The industry has already been transformed by several waves of digitalization. Social media, smarter personalization, ad-free viewing experience, video on demand (VoD) like the OTT solutions, and online gaming continuously compete for users’ attention. There is an ever-increasing demand for at-home digital media like OTT platforms which are now expanding to new demographics and locations. PwC research indicates that the Global OTT revenue will increase at a 13.8% CAGR to US$72.8bn in 2023, with its growth supported by the rising consumer appetite for video streaming services, consumption increasing in mature markets and rapid expansion in less developed regions. 

In this hypercompetitive market, having great content is no longer enough. Media and entertainment companies need to integrate their content into high-quality user experiences, better viewing recommendations, more personalized and relevant adverts, omnichannel experiences across devices, and online tools that nurture loyalty. New technologies like Artificial Intelligence, Machine Learning, Augmented and Virtual reality, 5G, Big Data Analytics, and voice-enabled assistants are acting as a facilitator for new business models in the media and entertainment industry.

3 important Media & Entertainment industry trends

Well, if you surf the web, you are likely to see a deluge of content talking about the emerging trends in the entertainment and media industry and their implementations. We will focus on the less famous, still essential elements and top influences of media and entertainment digital transformation.

1. Rise of Apps

When was the last time you watched TV without checking out social media or other apps on your phone? It’s no longer enough for consumers to consume one mode of entertainment. Many brands are discovering the power of multi-channel in keeping viewers engaged. Most of the media viewing comes from mobile phones, which is why people are producing more and more apps. Research by Smart Insights indicates that 80 percent of internet users own smartphones. With the ability to access mobile anytime anywhere, apps are much more convenient tools to access social media, news, movies, videos, and more. If you are in the media industry then it would be smart to start thinking of a platform that is made for mobile phones.

2. Cloud Transformation

The digital world of media & entertainment requires a massive amount of bandwidth and other significant data management resources as consumers today want to choose when and what they want on the internet. Also, Media and Entertainment companies are now struggling with legacy business models, information silos, and legacy infrastructure as they seek to gain an understanding of how well their content and offerings fulfilling the customer demands. And if not acted immediately, today’s consumers will move on to something else right away. To seamlessly handle these situations, media companies must be able to scale up resources quickly to avoid losing their audience in order to improve customer intimacy and operational efficiency. Cloud transformation may provide the solution, through highly scalable networks, advanced analytics, and enormous data storage capabilities.

3. Big Data Analytics

Do you know Facebook collects 500 TB of data daily, Google processes 3.5 billion requests each day, and Amazon draws 152 million instances of customer purchase data? Big data is rapidly becoming one of the driving forces behind the global economy and is underpinning every industry. The use of analytics has moved to the forefront as a way to understand audiences in real-time and increase personalization and customization. Entertainment companies are trying to digitize this data to gain a 360-degree view of customers to stay close to them in a socially distant environment. As digital media becomes a major source of entertainment, creators and distributors can derive massive gains in connecting to customers through the use of Big Data Analytics. With robust consumer data and advanced AI-based analytics, media companies will be able to predict consumer preferences with more accuracy than ever before, leading to an increased ability to deliver finely-tuned personalized experiences.

custom media & entertainment software development solutions

How Scalex can help Media & Entertainment companies?

At Scalex, we help media and entertainment firms stay ahead by leveraging our digital product engineering capabilities, powered by Mobile, Cloud & Analytics. As a Digital Transformation company, Scalex has always been at the forefront of such revolutions providing solutions and services towards enhancing customer experience and improving business efficiency.

What Scalex offers?

Application Development – Using agile software development techniques, testing services, and a DevOps approach, Scalex helps you build stronger products for your customers and take actions based on insights.

Cloud Transformation – We have helped several media and entertainment firms with legacy modernization by leveraging the power of Mobile and Cloud, resulting in improved customer experience. Our strategic partnership with Amazon Web Services gives you a rich choice of flexible and consistent cloud platforms.

Data Analytics – Data analytics helps you make better decisions in areas such as content, marketing, distribution, and user experience. Scalex helps you gather insights for personalized marketing and customer engagement management, helping drive new revenues in media.

Over the past 5 years, we have successfully delivered products to the leading organizations of the M&E industry that has given us access to the pulse of the sector while always staying agile. Start your digital journey with Scalex, contact us today!


Many companies still haven’t redefined their relationship with their customers by using the emerging trends in the media and entertainment industry. Today, the transformation of the processes is inevitable to nurture the audience and survive the fiercely competitive market. Content that is available at the click of a button and is available from anywhere and any device is the need of the hour. Leveraging the right technology to provide personalized content to the audiences’ preferences cost-effectively is what it requires to operate in the digital M&E space.

As we look ahead, digitization will make sweeping changes in the way content is consumed.  It will play a pivotal role in bringing outdoor entertainment directly to consumers at their comfort. This era will likely go down into the pages of history as the golden age of M&E, where COVID-19 was although challenging but it accelerated digitization for the changing behavioral patterns.

About the Author

Nikita has extensive experience in developing data-driven marketing campaigns and strategies. She has worked with SaaS, IT, Travel, Software, eCommerce, and digital marketing companies in the past. She leads marketing teams and has been successful in attracting prospects through content marketing strategies and social media channels.

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