The Time Has Come To Give The Entertainment Industry a Face-lift.
An overview of the issues faced by the outdated entertainment industry and the persistent problems that its stakeholders face.
The era of the Internet has revolutionized how things are done in many industries, and the entertainment industry is no exception. With the explosion in usage of digital devices to access media content, the avenue for media consumption at any place and time has increased dramatically; this creates endless possibilities for discovery and engagement.
At the same time, there are a number of problems and prevailing issues that the three main stakeholders (Fans, Stars, and Entertainment Companies) of the ecosystem face. These problems create market inefficiencies and a number of problems and dissatisfactions between all parties, leading to an industry that is slowing in growth.
Fans: Entertainment is a one-way street.
As a Fan, you wish you could do more for the Star you look up to. But a common gripe that Fans all over the world face is the feeling of insignificance — some want to contribute more and show more support than just buying their favourite Star’s music album, while others cannot afford to show their support by splurging on a music release.
The interaction between Fans and Stars are also often dissatisfying, especially when compared to the amount of media coverage Stars garner and the tools currently provided by the Internet. No Fan is truly satisfied with just following their Stars on social media, watching their Star’s performance and shows, and attending the occasional meet-and-greet and annual concerts. Fans are ready to spend more for experiences that allow more interactions with their Stars. However, how frequently are these events organized? How much time or effort do entertainment companies invest in these interactive events to allow the Fans a new and satisfying experience?
In addition to the dissatisfying interactions, Fans often spend time and effort purchasing the Star’s merchandise and services from third-party platforms, with the possibility of their personal information being compromised.
Celebrities do not have it easy either. Securing a contract with an entertainment company for sustainable talent development these days is not easy, but that is what a budding Star needs most. Entertainment companies are incredibly difficult to work with and often offer unfair terms to the budding Stars. A Star also has to compete in an overcrowded market for attention, thereby creating a high-pressure performance market. More often than not the famous becomes more famous, making it hard for new and budding Stars to break out and establish themselves in the entertainment industry.
Currently, one way to acquire and retain Fans is to build and engage with a community of Fans using all available platforms.
In addition to that, the advent of various media platforms, from traditional media like television and radio to social media such as YouTube and Instagram, mean that content creators have to change the format of their content to suit each unique media platform. YouTube videos, not to mention Instagram, already have a shorter duration than television segments, and the method of monetization for each of the platforms are different.
Entertainment Companies: High risk, low reward.
Meanwhile, entertainment companies face a multitude of problems stemming from the rise of social media, piracy and ever-changing consumer spending behaviour. While talent development is a prime focus for companies, it is a high risk, costly, and time-consuming process. Considering the oversaturated market, it is possible for a heavily invested Star to fail at breaking into the entertainment industry. Despite these challenges, developing a future Star is necessary to drive revenue for the entertainment company. Yet, as customer acquisition and user retention become more difficult due to the mass adoption of social media and the fragmentation of attention, businesses must adapt and provide new and innovative business models to keep up with the industry.
The issue of branding and fraud is a hassle that needs no introduction. Finally, while most entertainment companies are still stuck with the old business model, consumer behaviour has changed. The traditional ways of creating content and showcasing them through CDs and DVDs are long gone. Access to media consumption has evolved through the use of internet and subscription to various media platforms.
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