The media and entertainment industry used to have a linear model to operate, where they had content, which was distributed to an audience. The content and various other simple aspects used to make stars and give industry their boost. So, this was a simple business model used by the entertainment industry, where much power was held by the entertainment companies. But that is not the case anymore, the essence of internet and technology has ripped off that old linear work and business model, and things are changing quickly (Satell, 2016)

It means that entertainment industry is facing various kinds of issues with its evolution, which are related to its business model. The entertainment companies have to adjust to the evolution, which has been brought by the internet. There was a time, when people were dependent on entertainment companies and big platforms to showcase their talent and get some recognition, but it is not the way, talent comes in limelight these days; anyone having any unique talent can get recognition through internet with the help of various platforms like Pandora, YouTube, Facebook, and Flipboard etc.

The technology has proved to be new dynamics of setting business model for the entertainment industry. Now, a talent does not need any support of middle man to get recognized by the audience. The above mentioned platforms allow people to connect with their audience directly by sampling creating their own content. There are easy to use production software are available in the market, which allow people to create content, and broadcast their talent on the internet. For example, a common talented man with basic IT skills and basic production and video programs, can create his/her content and distribute freely on internet platforms. It means that competition for the existing big talent and entertainment companies is getting tougher as they have to diversify their business model to complete on such small as well as mass scale (Dwyer, 2018)

The entertainment industry is in spot of bother as market has become more and more fragmented and due to this hard competition from internet space; things are getting difficult for them to rely on old business models, and they have to come up with new ideas and new diversification in their business. The variety and diversification brought in by internet platforms have increased the expectations of mass audience, and audience expect that they will get something unique and more engaging from the entertainment industry, and if entertainment companies could not meet these expectations, it can be a big jolt to their overall business and revenues.

It can be said after looking at different aspects of the entertainment industry that the significant business problem faced by them is their business model, which needs serious considerations to get revamped. The entertainment companies have to found new ways to bring content to their audience, and keep their interest alive, otherwise internet industry is running away with the show. The entertainment companies have to look for new opportunities by adopting innovative ways to get hold on their power to manipulate industry. A new reshaped business model with diversified portfolio and variety is indispensable for the entertainment industry to survive in this great competitive business landscape.

References of Key Business Problem in Entertainment Industry

Dwyer, K. (2018). 6 Critical Risks Facing the Entertainment Industry. Retrieved December 15, 2018, from http://riskandinsurance.com/6-critical-risks-facing-the-entertainment-industry/

Satell, G. (2016). As The Media Industry Evolves, The Business Model Becomes The Message. Retrieved December 15, 2018, from https://www.forbes.com/sites/gregsatell/2016/01/31/as-the-media-industry-evolves-the-business-model-becomes-the-message/#27e913193ccd