According to research by Cognizant; companies in the media and entertainment are approaching the ‘end of the beginning’ of their digital transformation. Although only 3 percent of respondents say they are digital leaders, 47 percent expect to be in 2022. Expenses for new technology will increase by 50 percent in five years.
The digital transformation of the media and entertainment (M & E) industry has recently increased rapidly. For example, the TV pushed away the large cinema screen and mobile phones and tablets are currently disposing of traditional TV. Other examples are the growing reach and the market value of gaming, the personalized advertising service from Facebook and Netflix’s data mining to fine-tune the offer to the customer’s taste. But what is the next step?
Second half of digital transformation
According to a new study by Cognizant’s Center for the Future of Work, the M & E industry will mature within five years when it comes to digital transformation. However, many M & E companies, despite being among the early adopters of advanced digital technologies, will soon start the so-called second half; the digitization of products and services is just the beginning.
The study by Cognizant also shows that mobility is seen by almost eighty percent of respondents as the technological trend with the greatest impact in the coming two years. Technologies such as artificial intelligence (AI), augmented reality (AR) and virtual reality (VR) are expected to play a very important role even in adult industry such as sex cams, just like blockchain. However, at present only 29 percent expect that this data structure will be key technology by 2020.
Blockchain can serve many M & E applications in the future, from facilitating royalties and crowdfunding to digital advertising and distribution. In order to be able to use these new technologies in the short term, companies will have to act quickly and be prepared to experiment on a large scale.