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Globalisation
Thanks to advances in technology and regulation, media companies now
have access to worldwide markets and their massive potential, and face new
worldwide competitors too. Globalisation has levelled many of the barriers that
limited access to staff and factors of production: companies can now recruit the
most innovative people and cut costs by capitalizing on labour rate arbitrage.
Organisations can also source components and business processes from other
countries to improve the quality of their offerings, cut their costs or both.
But note that globalisation doesn’t mean “selling the same product everywhere”.
It’s not a shortcut to unlimited revenue. Smart media companies know that
differences in language, culture, consumption patterns and the law may demand
significant localisation, which itself can be costly.
Millennialisation
Media companies are facing a new type of consumer, one that:
• Makes decisions based on recommendations from other consumers on
social networks. They trust peers more than experts, and certainly more than
adverts. Nielsen found that 92% of consumers trust social recommendations
above all other forms of advertising.
• Actively participates by creating their own content — everything from
comments on blog posts to full-length YouTube videos. And they consume
amateur, user-generated content alongside purchased media.
• Is more demanding than ever about getting immediate access to their
chosen content at a price they think is fair. If they are unsatisfied with the
offering or conditions from established providers, they will go elsewhere.
These characteristics emerged with the “digital natives” of the
millennial demographic. But now net-centric lifestyles have become
mainstream. People of all ages are consuming new kinds of content
accessed through non-traditional channels. This is a threat, but if
you can master new media and engage with consumers — play the
game on their terms — it’s also an opportunity.
Further reading: listening to the future
Nielsen found that 92%
of consumers trust social
recommendations above all
other forms of advertising. 4
Consumers have never given companies so much information about their preferences, location, consumption habits and
interests. Big data is a hot topic at the moment and for good reason: information from social media, when mined and analysed,
can give you vital insight into demand trends. Read our report ‘Advanced Media Analytics for the Digital Age’ (available on
cognizant.com/information-media-entertainment).
September 2012 COGNIZANT
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