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Jun 2009
 The media sector is facing the combined forces of a cyclical downturn and structural transition from off-line to online, analogue to digital. Media companies are responding to the downturn by driving through a series of cost-cutting measures. Many changes are long-overdue. Media executives face some tough decisions along the way.
A brand new era cuts through the complexity and responds to the urgency by setting out a transformation agenda for media executives. It helps them manage the downturn and position for an upturn.
Key messages
- The winners from this downturn will have the confidence, agility and quality of decision-making to do what is required to survive, whilst adapting to the new environment in which they operate. This means a change in managing brands, characters, titles and talent across distribution platforms, supported by new commercial models.
- In re-balancing the portfolio in response to the cyclical downturn and structural transition it is vital to reassess the fundamental value of IP. Historical legacies in old contracts require re-examination.
- Understandably, new media assets command a lot of attention. However, re-examining areas once considered immutable could offer greater gains in the short-term. Advertising sales models, the terms of content and talent contracts, royalty agreements and the structures and terms of partnerships and alliances spring to mind.
- In a cash-constrained, risk averse environment it pays to adopt a systematic approach to partnership structuring to avoid common commercial, regulatory and operational issues.
- The next step is to translate statements of "anyplace, anytime, anywhere" models of content delivery into new organisational structures and day-to-day commercial decisions, based on an understanding of the total return on investment per brand.
- Delivering the "anyplace, anytime, anywhere" models of content delivery requires collecting, analysing and reporting financial information across all channels in order to calculate the return on investment per brand and make informed decisions as a result. Understanding the interaction of brands across channels, particularly the potential for cannibalisation and synergies, is a priority.
- Measurement and accountability is a core competency to support this transition.
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