Big data analytics platforms and the entertainment industry
The global entertainment and media industry is set to grow at 4.4 per cent compound annual growth rate (CAGR) through 2020 to reach just under $2 trillion this year, according to PwC. This growth will be driven by the industry diversifying their offerings, the employment of big data analytics platforms as well as higher demand for new content.
The entertainment industry is evolving at an exceptional level. New technologies like smartphones and digital media allow consumers to connect to a new entertainment world enabled by these disruptive technologies. Technology is making entertainment a more data-oriented experience. Content creators can leverage the data to generate new practices and innovative opportunities to create better quality content and create new material for consumers.
As a result, there are some significant benefactors within the entertainment industry when it comes to leveraging big data analytics platforms, resulting in increased profitability and a better connection between producers and customers. It is no longer sufficient to merely publish a daily newspaper or broadcast a television programme. Contemporary operators must look to drive value from their assets at every stage of the data lifecycle.
To better understand the transformation of the entertainment industry as they adopt big data analytics platforms.
Predict customer preferences and needs
According to Deloitte, how people consume media has changed dramatically over the past decade, creating both challenges and opportunities for the industry. Millennials today spend more time streaming content over the internet than watching it on television, and more than 20 per cent of them habitually view videos on their mobile devices. Streaming services like Hulu and Netflix, continue to flourish with approximately 60 per cent of consumers subscribing to them. By 2021, 209 million people will be using video-on-demand services, up from 181 million viewers in 2015.
With millions of digital consumers across the globe, media and entertainment companies are eager to reshape media platforms. They want to provide more personalised content to their audiences. In that sense, they are in a unique position to leverage their big data analytics platforms to improve customer engagement and profitability.
Data insights could be utilised to predict the demand for specific genres of shows, music, movies and weekly shows for a given age group, and what each viewer could potentially be interested in based on prior interests.
Generate more revenue using big data analytics
Big data can also help media and entertainment companies generate more revenue. The data does so by suggesting new ways to incentivise consumer behaviour, revealing the true market value for content, feeding into the creation of new content and providing more data for targeted marketing. Targeted ads are a gold mine in the entertainment industry. Channels are utilising big data analytics to understand how and when to push ads to consumers along with other value-added information that appeals to the consumer (boosting their bottom line). Understanding what part of their demographic wants helps curate sales strategies to be more effective and generate more revenue as it only hits the customer with the most interest.
Optimise media streams and analysing factors leading to churn
Using insights gleaned from big data analytics, companies can understand when customers are most likely to view content and what device they’ll be using when they view it. With big data’s scalability, this information can be analysed at a granular ZIP code level for localised distribution.
This means that the ability of big data technology to ingest, store and process different data sources in real-time is a valuable asset to the companies who are prepared to invest in it.
By using big data to understand why consumers subscribe and unsubscribe, entertainment companies can develop the best promotional and content strategies to attract and retain customers. Unstructured big data sources such as call detail records, email and social media sentiment reveal often overlooked factors driving customer interest.
Big data analytics the new star in Tinseltown
The amount of data that media and entertainment companies can gather regularly is mind-blowing; however, it’s what they do with all that information that really makes all the difference. The entertainment industry is making a rapid transition towards a more personalised experience for consumers, thanks to big data analytics platforms. Marketing and distribution, in particular, are undergoing a rapid transformation to create an experience that is beneficial to both consumers and content creators.
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