From flip books and spinning wheels to digital video and online gaming . . . from independent publishers and standalone properties to national media networks and global entertainment brands - technological innovation and consolidation have a long history of shaping the media and entertainment industry. Today, the pace of this decades-long revolution is accelerating. New channels of distribution continue to emerge, CRM technology is facilitating the collection and sharing of a plethora of customer and internal operating data across an organization, and a swell of new products and services are entering the market. As a result, fierce competition is developing across value chain elements that were once comfortably isolated (i.e., device manufactures, service providers, and content providers are all beginning to compete with each other for end-user loyalty), and companies that have already consolidated are desperately searching for ways to fully benefit from a combined set of assets (e.g., detailed customer information, economies of scale, market leverage).
While economic benefits of technology and consolidation have already been realized, most media and entertainment companies are far from capturing the full opportunity. The value "left on the table" is not the result of a lack of vision or ideas but rather that the tough executional questions remain unanswered . . . how do we bring all the pieces together as a fully-integrated strategy? . . . and what, specifically, do we need to do to achieve our goals?
Dean & Company has the experience, skills, and exceptional talent necessary to provide senior management the answers to these critical questions. Rather than tout the latest industry buzzwords and academic frameworks, we drill down into the fundamental economics of the business issue, using facts to quantify the value of strategic options and define the individual actions necessary to get you to the most profitable result. The answers are unique to each individual company and likewise are our recommendations.
Dean & Company's clients immediately recognize the value and uniqueness of our Media & Entertainment practice, perhaps best illustrated by contrasting prose:
Rather than itemize the IT systems necessary to track customers across properties, channels, and business units . . . We identify the critical elements of CRM that drive customer bonding, quantify the value of specific operating tactics, and define which actions your business must take - all while considering the delicate issues of brand conflict, customer privacy and historic product silos.
Rather than discuss the conceptual benefits of scale and best practices . . . We quantify the benefits your company can actually achieve, state specifically how and where to achieve them, and answer whether or not these benefits are significant enough to provide sustainable competitive advantage.
Rather than declare that new distribution channels are the way of the future . . . We determine what is the appropriate level of investment in each channel, which channel combinations should target each individual customer segment, and what profit improvements will be created.
Rather than state that new technology will change the way a service is provided . . . We identify where profits will migrate as a result of technology and define what your company needs to do to ensure it maximizes its share of the profit pool and avoids falling into the commodity-provider position.
Some of our relevant experience is briefly summarized below:
- Global Entertainment Company:
- Identified and prioritized operational performance improvement opportunities (scale, service mix, practices)
- Defined cross-property, cross-product customer targeting strategy
- Developed performance improvement plan and incentives
- Recommended strategic positioning in the industry supply chain
- Traditional Print Publisher
- Conducted detailed economic analysis of the electronic media industry
- Defined a targeted set of content and applications to maximize return on investment
- Developed a partnership structure to best facilitate rolling-out a new electronic media business
- Major US Movie Theater Company
- Conducted relative economic analysis of stadium-seating and traditional theaters
- Modeled market dynamics to determine sites where new theater development would profitably displace competitors (location strategy, number of screens, number of seats, service offering, pricing)
- Broadcasting / Distribution Company
- Evaluated the relative economics of channel/distribution options (satellite, Internet, magnetic media, etc.)
- Defined segmented market growth opportunities for retail advertising services
- Major Cable Company Moving into Broadband Content Delivery
- Defined the critical value chain elements of broadband content delivery where sustainable profits will exist
- Charted a hybrid internal development / acquisition path to generate the most attractive return on investment
