The media market showing great signs of recovery post COVID-19

Shahid Khan, Partner & Global Media Segment Head at ADL

Arthur D. Little (ADL) has published its 2022 flagship report on the global media market. It focuses on how media, sports, and entertainment firms should respond to the post-COVID world, by both capitalizing on existing opportunities and transforming their business to remain attractive. The report identifies the key themes that are shaping this new era of media.

What are the key themes shaping the media today?

Arthur D. Little’s report found the the following themes to be shaping the new era of media;

  • The development of D2C capabilities, with Connected TV advertising now the fastest growing video ad platform
  • The increasing instability of the Netflix business model, with market churn starting to bite
  • The role and viability of Web3 in providing a new revenue source for the TV & video sector

What is the purpose of this report?

The aim of this report is to provide expert insight to four key parts of the media ecosystem:

  • Media industry executives – helping them to identify opportunities for vertical or horizontal integration, as well as to guide portfolio optimization and go-to-market strategies
  • Telecommunication industry executives – providing guidance and market insights on the development of their non-core business segments
  • Financial investors – showing the most attractive market segments and acquisition targets
  • Academia – presenting a comprehensive dataset and framework for future research on the transformation of the media industry

Arthur D. Little research report’s insights into current market trends were developed through a rather extensive interviews with senior executives and draw on project experience with global media players across all segments. The quantitative market sizing and future forecasting of the industry covers 53 countries and a 10-year period from 2015-2024.

What were the executives’ thoughts on the report?

Shahid Khan, Partner & Global Media Segment Head at ADL, said: “As of early 2022, the media market shows strong signs of recovery. Traditional players are embracing digital, while new entrants continue to invest, with M&A activity showing no signs of abating. The advent of Web 3.0 and NFTs has also created new opportunities for content owners, brands, aggregators, and intermediaries, even if not all innovations are destined to succeed.”

Commenting on the report, Maureen Kerr, Partner and Gabriel Mohr, Principal at ADL, the co-lead authors of the report said: “Our research shows multiple paths forward for the global media industry – the only inviable one is sticking to the old road. Smart and swift launches, investment, and acquisitions might be the difference between prosperity and irrelevance, while new technologies have the potential to radically alter the media landscape.”

ADL’s State Of The Media 2022 report can be downloaded here.