2025 Demands Radical Collaboration and AI-Driven Innovation
The convergence of advanced technology and the growing influence of big tech has set the stage for 2025 to become a pivotal year for businesses. As industries evolve, companies must break free from outdated models and embrace cutting-edge innovations to truly engage and empower their audiences. This shift isn't just an opportunity—it’s a necessity for those looking to thrive in today's user-driven landscape. Forward-thinking strategies, driven by collaboration and AI, can help M&E companies not just stay afloat but lead in 2025 and beyond.
The Concentration of Power in the Media Ecosystem
The current media landscape has grown increasingly consolidated and dominated by big tech. Six tech giants control 73.5% of the media tech market's value, creating an immense imbalance in resources and influence. When you consider that 99.9% of smartphone users globally are controlled by only two companies — Apple and Alphabet – the overwhelming influence of big tech on the media landscape becomes clearer.
The UK serves as a clear example of big tech's dominance, particularly in the television market. While legacy broadcasters like BBC and ITV remain strong, Google (via YouTube) is the second most-consumed video platform behind BBC. Nearly 40% of YouTube’s use in the UK occurs via television screens, illustrating the platform’s evolution from a mobile-first service to a multimedia powerhouse.
This power concentration challenges M&E players, particularly smaller players, who often struggle to access the capital and data needed to adapt. But the solution does not lie in competing head-to-head with tech giants. Instead, it involves carving out a space where these companies coexist with big tech—leveraging their unique strengths to resonate with an evolving and demanding audience.
The Challenges of Top-Down Models in a User-Centric Era
For decades, the media industry has relied on top-down, gatekeeper-driven control models. However, these strategies are losing ground, especially among younger audiences who demand more control over their media experiences. With two-thirds of the global population under 40, it's vital for companies to rethink how they cater to this demographic.
Traditional broadcasters, for instance, risk losing entire generations if they fail to meet users on platforms like YouTube and TikTok. While there’s often concern about "cannibalizing" their legacy viewer base, evidence suggests otherwise. Leading innovators like Channel 4 in the UK have found that reaching younger viewers on digital platforms grows rather than detracts from their overall audience.
Neglecting user needs leads to significant consequences, including declining engagement and revenue losses. Historical viewing patterns, segmented by age and behavior, show clear fragmentation. Audiences are no longer waiting for scheduled programming; they demand content on their terms, across multiple devices and platforms.
The Case for User-Centric Models
At the heart of user-centric innovation lies one principle—knowledge is power. Companies must deeply understand who their users are, where they engage, and what they value.
With personalization as the north star, adopting user-centric strategies delivers key benefits like:
- Higher Engagement: Tailored experiences keep audiences coming back for more.
- Broader Reach: Meeting users where they are (on platforms like TikTok or YouTube) helps expand reach across fragmented demographics.
- Stable Revenue Streams: Empowered users develop loyalty, reducing churn and ensuring repeat engagement.
Disney offers a real-world example. By transitioning to a direct-to-consumer model, they've both empowered users and maintained tight control of their audience relationships. The result? A winning recipe for a competitive edge in the streaming wars.
Leveraging Technology to Personalize and Empower
Technology is the vehicle that drives user-centric strategies. Artificial intelligence (AI) and data analytics play critical roles in identifying emerging trends, optimizing operations, and creating highly personalized experiences.
Here's how technology can revolutionize M&E strategies:
- Predictive AI for Preferences: Platforms like Netflix harness machine learning to predict viewing patterns, allowing them to curate hyper-relevant recommendations for viewers.
- Real-Time Insights: Analytics tools deliver actionable insights, such as identifying which ad campaigns are driving conversions or which content formats resonate most with key demographics.
- Workflow Automation: AI simplifies mundane and repetitive tasks, freeing creators to focus on innovation and storytelling.
But the key is not simply automating tasks—it’s using tech to empower users. Transparent algorithms, customizable recommendations, and a focus on inclusivity ensure that technology adds value without feeling intrusive.
Strategies for M&E Companies to Stay Competitive in 2025
To remain relevant, companies must adopt future-forward strategies that position them as adaptive, innovative, and resilient. Here are actionable approaches to consider:
1. Radical Collaboration
Gone are the days of siloed strategies. By forming partnerships, companies can share resources and data while expanding their reach. The Paramount+ and Walmart+ partnership, for instance, illustrates how mutual benefits can extend audience reach while delivering value.
2. Adopting Agile Models
Agility is non-negotiable in 2025. Companies must adapt quickly to market and audience shifts, leveraging real-time feedback loops to optimize their approaches. Flexible workflows and open communication channels among teams play a vital role here.
3. Investing in AI-Driven Innovation
AI is no longer optional. From smarter content recommendations to advanced delivery methods, the scope of AI-driven innovation is immense. Integrating AI tools that can predict preferences or deliver personalized content ensures companies stay ahead of consumer demands.
4. Reimagining Content Delivery through Personalization
Tailored content solutions backed by modular, flexible supply chains allow M&E companies to meet the demand for personalization cost-effectively. Using AI to analyze consumer data ensures that every interaction feels intentional and relevant.
The Road Ahead for M&E Companies
The media and entertainment landscape in 2025 will reward leaders with the vision and courage to act today. User needs will remain central to defining success, and companies that empower their audiences rather than control them will build the longest-lasting relationships.
While the dominance of big tech is formidable, it’s not insurmountable. There’s room in the ecosystem for smaller players, broadcasters, and creators willing to innovate, collaborate, and adapt.
The question now is, where will your organization stand? Will you cling to outdated gatekeeper models, or will you champion users—building trust, loyalty, and engagement in the process? At Ateliere, we’re here to help businesses take the leap. Contact us today to learn how we can transform your media strategy and empower your future.
The future waits for no one. The time to act is now. Are you ready?
[Editor's note: This is a contributed article from Ateliere Creative Technologies. Streaming Media accepts vendor bylines based solely on their value to our readers.]
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