Don’t tell Jeffrey Katzenberg, former Chair of Walt Disney Studios and DreamWorks Animation! At the recent Fortune Brainstorm Tech 2019 Conference in Aspen(where I had the opportunity to stop by), Quibi, the up and coming video streaming services company designed for mobile devices, was center stage with Jeffrey Katzenberg as Chairand Meg Whitman as CEO. With over a $1 Billion in initial funding and commitments from A-List talent, these executives and their company, are countering traditional thinking on this matter. As well, media giants such as Disney, Warner Media, NBC, Universal and CBS as well as PBS are jumping into the digital media world to join Hulu and Netflix. Other technology companies such as Amazon and Apple are also coming into the market.
The children of Gen Z are now accustomed to replaying movies, repeating content and enjoying other benefits such as video streaming where content is always accessible. As new technology and trends in media consumption have moved forward, adults and children alike, have grown accustomed to content on demand which is customized to their perspective and made accessible anytime they want it from media to education. Advertisers and underwriters are looking toward the new media to assert their place in the New Digital Media World.
Artificial Intelligence is Changing the Landscape
Earlier changes have included multi – channel experiences — such as interactive communication through social media such as tweets from live viewers. Using phones and computers for watching media — movies to television — has become mainstream. Artificial intelligence (AI) is changing the entire creative process through a new concept of computer – human “collaboration”. Entertainment companies are using AI to create effective movie plot points based on box office performance, significantly shortening the time for production of trailers, effective use of market research and increased user basis.
Netflix and Amazon are using curated content, recommending shows that are popular in products that can be bought based on past performance, using analytics and focusing advertising companies and dollars. Users are not relying on cable companies for their channels as they move to live media and Netflix as well as going online to find content on YouTube or original series on Netflix, Hulu and even Amazon. Cable companies are replacing traditional offerings with smaller bundles and specialty packages. Virtual and mixed reality has been moving into the media and entertainment industries. The blended experiences of mixed reality is appealing to audiences.
Advertising in the New Media
As we move into 2020 we have seen an evolution in the advertising and underwriting world in media. Because the availability of deep analytics has been made possible with machine learning, augmented reality and AI, advertising and underwriting has evolved with the technology. Product placements are now being replaced with real time ordering products that someday will be available by clicking on the screen as products appear in the various media. Product placements will also be substituted out with products that a user is more likely to order and buy. Marketing and money are the key focuses in the entertainment and media business as well as user experience and engagement-personalizing and viewing experience and getting content to audiences where and when they want it, on whatever device that they are using. Content on demand which is tailored to users interests and accessibility is the key. There is a significant increase in the amount of digital video advertising that has occurred. Marketing in our new age is moving forward into machine learning and AI to hyper segmented audiences. Many viewers have indicated preference in finding their content via streaming companies recommendations. Multi- platform (e.g., accessing social media or other apps on the phone while watching television) are becoming necessary for engagement and satisfaction of the viewer. Streaming content is becoming more commonplace with millennial’s and Gen Z, changing the way data is packaged and sold. Much more focus is being placed on 5G offerings as more space will be needed for photos and video as well as subscription services like Hulu, Netflix and Amazon. New business models for cable providers are needed.
Education on the Landscape
New conceptsin education from include custom learning experiences involving media (e.g., book reports, songs, art work or even dance), replacement of standardized testing with new forms of learning and retention in different forms of media (e.g., visual , auditory, kinesthetic, etc.) and digital transformation trends in technology are opening new avenues for learning (e.g., interactive games, modeling tools, video production, new media, etc.). Information and knowledge are becoming more accessible through voice-to-text, and text-to-voice transcription as well as different forms of broadcasting for all students, including those with learning issues and geographical limitations. PBS has long been a significant participant in bringing education to children in all locales, while introducing innovation into the education field.
The Internet of Things (IoT)may also come into position in creating smarter, more connected schools, while evidencing sustainability as they provide opportunities for saving energy and lighting usage, as well as providing security through real-time communication and time-stamp tools, connecting homework assignments, facilitating communication between and among parents and students and providing accessibility to absentee and less communicative students and providing overall engagement in the education process. Enabling new learning styles and models from homeschooling, customized learning plans, and delivery of the technology through media is resulting in more engagement and connectivity in the schools. The process of education will be centric in the evolution of the digital transformation of media in this area.
More opportunities and new models will be needed as the media companies pursue the use of technology in the various areas of content distribution, broadcasting, advertising/underwriting and education.