Digital Transformation of the American Entertainment Industry
DigitalTransformation of the American Entertainment Industry
Overthe past decades, profound shifts in the entertainment and mediaindustry have been witnessed not only in America but the world as awhole, for instance, the way content is created, shared, as well asmonetized. Content include movies, advertising, online publishedcontent and music to mention a few. The digital transformation hasaltered the way media and entertainment industries compete andperform in America (Berman 17). For that reason, media, as well asentertainment industries, are discovering content development,aggression, and or distribution based on technologies that come intopractice to outdo traditional models. According to Berman, televisionand broadcasting companies are at a substantial crossroad because ofincrease in demand for content aggressors e.g. Netflix and or Hulugenerate banks of on-demand content the increasing number of viewersrequire the ability to watch both high speed and quality content(18). Therefore, the digitization of entertainment industry has beenpropelled by shifting consumer behavior and anticipation, especiallyamong younger generations who need immediate access to contentinformation regardless of their location. Similarly, consumersrequire more available content to select at any given time, and anymix via various delivery possibilities and devices. From the reasonsmentioned above, entertainment industries need to boost the businessrevenue such that they are able to concentrate on what is critical totheir prosperity right now through digitization. Thus, the researchpaper examines the digital transformation of the Americanentertainment industry.
Competitionfrom Streaming Companies and Effects on Narrative Structures inTelevision
Streamingmedia and entertainment employ digitalization practice, i.e.modifying daily uses of media and business practices andtransnational cultural geography (Bai 360). Therefore, the streaminglandscape has changed from traditional cable to include the digitaldelivery channels for instance, Home Box Office has shifted itsstreaming structure and commercial streaming model. Also, variousstreaming televisions have replaced outdated cable and satellite paytelevision services with digitalized streaming facilities, e.g.Netflix, Amazon Prime, Hulu and or Home Box Office (Jenner 265).Additionally, Home Box Office has begun a competitive streamingtechnique of generating high-class and original content todistinguish them from other premium movie television networks. Baiargued that other streaming companies such as Netflix, other digitaldistributors as well as Amazon Prime have embraced the similarstrategy (model) to invest in original content to entice and retaintheir subscribers (360).
Moreover,Jenner noted that Netflix streaming network launched its digitalizedstreaming services in 2007, while Home Box Office launched its HomeBox Office (HBO) Go in the year 2010 to allow their customers towatch high-quality content whenever they wanted not only throughtelevisions (261). For that reason, the number of streamingindustries to generate and distributes high-class content informationhas increased considerably. Home Box Office continually creates valuefor its subscribers in all of its streaming channels by capitalizingon original programs to outdo Netflix and Amazon Prime (Jenner 262).In other words, Home Box Office streams some of the best and originalcontent presently available, for example, Game of Thrones and Westworld. In addition, Home Box Office has embraced cord cutterservices, thus, allowing cord cutters to access Home Box Officecontent information that they could not gain access to in the pastwithout paying streaming subscription. Furthermore, severalstructural changes have occurred in streaming companies, forinstance, concerning Home Box Office, a satellite television networkhas created direct to consumer services. Thus, they avoid thetraditional streaming television distribution networks (Bai 360). Forthat reason, the company received an increase in revenue stream sincethe majority of viewers switched from cable HBO subscription to HBONow. For example, Home Box Office captured value by charging USD14.99 per month for an HBO Now payment because it is direct toconsumer offering (Holt and Kevin Sanson 159).
Onthe hand, for Netflix to compete favorably with other streamingindustries, it releases the entire season of its shows at once basedon technology and industrial shifts, a historical change thatencouraged viewers. O`Hagan and Carmen Mangiron affirmed that onFebruary 1, 2013, Netflix, as a streaming company, premiered thepolitical drama House of Card as its original and quality series, astrategy that made it grow in the streaming industry (53). The plan,as well as the categorical step into original programming, madeNetflix the dominant streaming platform in America. Consequently,Netflix has positioned itself to compete globally within the constantadvancement ecosystem of online streaming, a move that made itreceive over 75 million world subscriber, thus, it remains far andaway the leading streaming service (Jenner 259). According to Jenner,substantial changes in technological streaming taken place from 2009to 2015, indicating a sudden shift in streaming companies informationgeneration, distribution, and consumption (263). Besides, differentchanges were observed in 2016 when the National Broadcasting Company(NBC) launched original content distribution with high widescreen,high-fidelity sound, as well as first-class pictures to standcompetitively. The NBC technological improvement based on images andsound quality enhanced the company to gain more legitimacy with moreviewers (Jenner 262).
Further,host streaming devices, for instance, Smart TVs, game consoles, aswell as set-top boxes, i.e. Apple TV, relies on digitization tostream their programs on their television networks. Jenner assertedthat embracing streaming distribution through computers and mobiledevices’ internet has contributed to wide acceptance regardingcontent distribution within the entertainment industry (266). Hence,streaming is the current interaction in the digital media industry.Therefore, it is not just a viewers practice, but also a developingpart of entertainment industries. As a consequence, enterprises suchas Netflix signify the advancement in addition to the maturity ofonline media institution (O`Hagan and Carmen Mangiro 120). Likewise,the discussed streaming companies are progressively butting upcontrary to the outdated guard of Hollywood, cables industries, andstreaming television companies.
Adoptionof Embedded Ads and other Strategies by Advertising Companies toReach Hostile and Evasive Audiences
Withthe current technological inventions, as well as digitalized methodfor sending targeted information content to their customers, manycompanies keep sensitive clients and or customer information (Websterand Thomas 53). Precisely, the recent digitalization relates todigital confidentiality strategies that embrace consumers’ executedsoftware modules as an intercessor. Therefore, typical onlinenetwork in which advertisements and other content informationincorporates conventional television system is enhanced, withadvertisements conveyed to clients indiscriminately. In essence, theadvertisers must pay to deliver the advertisement to broad audienceof consumers, including those who have no interest in the internetads. However, through the improved fragmentation of digitalizedmedia, as well as consumers and revolution in mass communicationthrough technologically advanced channels, the internet (online) hasgenerated the need for a proper approach to marketing communications(Webster and Thomas 53-54).
Jennerargued that online and social media communication is acknowledged byvarious practitioners as the fundamental strategies for marketadvertisement through various social mediums, for example, Facebook,Blogs, YouTube, Twitter as well as LinkedIn (266). Differentbusinesses today employ new media to develop targeted awareness thatreaches particular segments while engaging their consumers at agreater level than traditional media. The strategy consequently leadsto increased customer market efficiency. In order to apply thetargeted information, the content information distributors identifycustomers to whom the goods’ information are targeted (Jenner 267).In spite of the economic and social advantages of targetedadvertisement, there are grave worries in hostile environment andaudiences amongst consumers concerning the invasion of privacy byaggregators of clients’ information (De Vinck and Sven Lindmark119). Thus, marketing communications should concentrate on theprivacy online strategies to offer the highest benefits both forstakeholders and customers. Lastly, various companies embrace brandawareness of their products to a particular market segment featuredin television programs and publications, as well as Google ads.However, some personalities hate ads (people do not like to be forcedto listen to what they have no interest in). Thus, it is advisablefor companies to review their market to ensure they only reachindividuals who are interested in the company’s goods (Holt andKevin Sanson 159).
StrategiesAdopted by Neilson Company to Track Viewers on Digital Platforms
Subscribers(viewers) are shifting with time. Hence, as technology advances,media companies are employing new tactics to attract many viewersthrough comprehending what customers are watching alongside what iscrucial to them (Crain 120). Therefore, Neilson Company offersappropriate metrics that are essential to inform marketing and orprograms that propel the company growth via attracting severalviewers. First, the company measures world viewing behaviors throughdifferent channels and or programs. In other words, they capture whatstreaming channel viewers are watching on each television network andset in the major American marketplace (Crain 125). The measurementenables them to strategies programs and advertisement for theirappropriate audience. Second, Crain mentioned that the enterprisemeasures video content watched on mobile devices thus, the companydelivers regular, real-time broadcasted information, revealing tuningcharacteristics during particular television programs and commercials(125). Third, Nielsen enterprise informs their customers (clients)about the type of ads viewed at that given time by revealing the onesthat have the strongest engagement besides influence. In any case,knowing by what means and at what time to reach customers is the HolyGrail of viewers’ measurement. Hence, it assists the mediaindustries and brands to come up with relevant plans and programs.Finally, the company has an online panel that combines therepresentativeness of likelihood sampling to offer a baselinedemography and online behavior (Webster and Thomas 50-51).
Effectsof Inexpensive Digital Production Equipment on Democratizing IndieFilm
Websterand Thomas argued that an effect only takes place when one aspectmeets another, therefore, the introduction of digital technology intothe filmmaking manufacture processes will have an impact in the Indieindustry (55). However, the intensity of effect is very challengingto quantify, thus, defining whether an influence is positive,negative or both needs thorough comprehension of the digitalinformation (Jenner 272). Berman reasoned that the effects aredeliberated in terms of pre and post productions, as well as theexhibition of the film (19). Digital technological advancement keepsa lot of information by electronic means in discrete binary digits.Besides, the quality of information stored relies on resolution, bitlevel and compression ration that the advanced technology applies. Inview of that, embracing digital video will impact the Indie filmindustry because it uses analog video technology which suffersgeneration loss due to constant electronic signals. Additionally,digitalization changes the binary information hence, it isre-useable and playback can occur without quality loss (Webster andThomas 55). And so, Indie film which is analog does not storeinformation magnetically but instead embrace chemical infusedpermanently upon the negative.
Astudy by Berman revealed that introduction of digital filmmaking hasseveral consequences that are essential than the camera itself (23).Moreover, due to progressive and innovative shifts, digitaltechnology is preferred over the current techniques employed by IndieFilmmaking Company. Holt and Kevin Sanson concurred thattechnological advancement could be discussed based on its operationof one or many fundamental factors, that is, production efficiency,produce differentiation, as well as respect to standard quality (47).From that perspective, digital production is worth acknowledgedcompared to existing technology used by indie filmmaking industry.Also, Indie film has dozens of technicians that run the film viamechanical camera which is chemically sorted out before beingdelivered to cinemas (Jenner 267). From the reasons mentioned above,the indie film remains influenced by inexpensive digital productionsthat keep advancing annually.
BroadcastNetworks (All streaming) in the Next Five Years
Itis not only America but also the rest of the world experiencepressure to regain spectrum, precisely the broadcast spectrum (Dai,Zhaocheng Wang and Zhixing Yang 168). For instance, in America, thedemand arises from the aspiration to increase the amount of capacityavailable for wireless networks, as well as the unlicensed devices,in the next five years. Berman predicted that the customers’demands for both wireless and interconnected services will come intorealization in the coming years (24). For that reason, the majorityof broadcasting and or streaming companies have positioned themselvesto take part in the development of wireless network and internet inthe next five years. Besides, over 100 million of the 115 milliontelevision households in America will receive their TV set from MVPDscable, Telco, as well as satellite (Jenner 270). In addition, moredetermination by all streaming and broadcasting industries are tokeep their spectrum based on Mobile TV. Based on the internetconnected devices, streaming companies will distribute a high numberof video services. In the same way, spectrum reallocation will offermore capacity for video services on wireless cell networks to put upwith the rising loads. Furthermore, the internet will providesignificant support on first class video streaming as it moves to theworld of commercialization (Berman 20-21). To sum up, the government,together with both streaming and broadcasting companies, will ensurethere are modifications in the way citizens access televisionnetworks. For that reason, the future is anticipated to alter howtelevision is acquired and consumed (De Vinck and Sven Lindmark 131).On the contrary, the traditional media organizations can endure andflourish if they concentrate on a particular principle. That is, inthe long run, the clients are concerned about content delivered butnot where it comes from or how it gets to them (Dai et al. 171).
Itis no longer an inquiry if the digital revolution will happeninstead, the query is how industries will react to leverage theopenings presented by the digital video as new participants enter thestreaming marketplace, attracting the viewers and or consumers.Therefore, content value information and aggressiveness are pivotalas they are placed on new commercial models, services, partnershipand or acquisitions. In tandem with that, for an entertainmentindustry to compete in the ecosystem, they have to embrace newdigitalized commercial tactics. For that reason, all streaming andbroadcasting industries such as Netflix, Telco, as well as cableindustries to mention a few, in conforming with the digitaltransformation, will not take time to catch up with the trendconcerning the anticipated television network in the coming years.
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