Rethink - Media & Entertainment
At BDO we have framed our thinking for recovery around the Rethink model with three phases, React, Resilience and Realise.
The media and entertainment industry is a dynamic and agile sector. However, the effects of COVID-19 on the industry are complex and highly dependent on which subsector one is operating in, varying from an uptick in demand to a need for a complete rethink of the business model.
The same applies to the issues that media companies will seek to address in the months and years ahead.
For example, streaming services and gaming subsectors have seen increased demand during the pandemic, and these companies must evaluate what this means for their investment in IT infrastructure and new products and services. The events subsector and a portion of the advertising subsector have, on the other hand, experienced a decline in business and a need to stabilise cash flow, refine financial forecasts, and to pivot some – or even all – of their services. For many media companies, existing business models have been disrupted, leading to questions such as: which changes are temporary, and which ones will remain over the longer term?
Media companies operating across all subsectors are undergoing a technology-driven evolution to respond to changing customer preference for unique, digitally enabled, customisable experiences. Funding for growth to innovate and to further develop existing service offerings must be balanced with strong ROI, and timely integration of new technologies. Accelerating digital transformation has been a priority across the media sector – even before COVID-19. Now, the need to act quickly is acutely felt as new technologies, such as AI, AR/VR, and 5G, create new opportunities.
Our global BDO team, with representatives in more than 160 territories, assist media companies from start-ups to some of the world’s biggest media conglomerates. They have a deep understanding of the rapidly evolving business environment that media companies operate in. They understand the challenges and complexities that affect media businesses and know how to help them streamline operations, create value for stakeholders, thereby helping media companies reach their full potential.