Key Business Problem Facing the Entertainment Industry

1. The entertainment industry is facing various key business issues in recent times, and entertainment companies have been making considerable developments to deal with those problems. The industry has gone through a complete transition due to intense advancements in the technology. The information technology and internet has changed the way entertainment industry work these days. There was a time, when people were dependent on large media and entertainment companies to get entertained. They have to purchase CDs & DVDs of movies, and paid cable network to watch TV channels. But all this business model and dynamics have been changed with the evident presence and evolution of technology. Today, people are able to access online platforms and apps, which allow them to watch free streaming of TV channels, and they can also stream TV show, movies and many other programs free of cost.

Moreover, the earlier entertainment industry has great powers to manipulate their audience and drive them as per their needs, but now entertainment companies have to change old business models, and they are more dependent on the choices and desires of their users. The audience has great choice through online platforms. In addition to that the talent is also no more dependent on large media and entertainment firms; rather they have online free platforms to show their talent to the global audience without any issues. Some of these famous platforms helping the new talent are YouTube, Instagram, Facebook etc. So, key business issue for entertainment industry is to come up with new ways and strategies to keep competing in this intense technological competition era, and engage with companies as well as audience to get more space.

2. The entertainment industry can deal with current issues and challenges by taking a proactive approach, where they must use interactive and other kind of online media platforms to engage with customers, and also form partnerships with large firms in other business industries so that they can gain more revenue from those large firms b handling their marketing and advertising activities. For instance, recently Walmart is looking to get deeper into the industry of entertainment so that they can deal with the competitive challenges thrown by Amazon.

They are making collaborations with entertainment companies so that they can gain more attraction in the market. Walmart has decided to work together with two companies; one is Metro-Goldwyn-Mayer, which would help to make original web series for Walmart’s Vudu streaming services and the other company is EKO, which is involved in a video format that is based on interactive storytelling. These joint ventures are huge opportunities for entertainment industries to team up with large firms, and get more revenue and attraction from users. This is a possible solution for their current problem, which they are facing due to changing business models in the entertainment landscape. This is not only solution for entertainment companies, but it is also a great opportunity for other businesses to get more attraction of potential customers and clients in different business industries.