Artificial Intelligence Impact on Media Business Cycle Flywheel

Artificial Intelligence Impact on Media Business Cycle Flywheel

This IDC Perspective summarizes the business cycle flywheel effect on the media industry. In the evolving media industry, a flywheel viewed as a virtuous circle emerges with a symbiotic relationship between content creation, distribution, consumer engagement, and monetization. This drives media company profits as business cycle operations, orchestration, production, distribution, and monetization leverage data insights and artificial intelligence (AI) for intelligent decisioning and positive financial outcomes. The purpose of this document was to highlight the virtuous circle, identify its challenges, and optimize the business cycle flywheel by focusing on it during the media company's strategic planning process.''We are at an inflection point where media companies need to rethink their strategy focused on best practices, vendor solutions, road map alignment, and technologies to optimize the business cycle flywheel,'' stated Alex Holtz, research director, Worldwide Media and Entertainment Digital Strategies at IDC. ''Media companies need to be challenged by hiring creative consultants working with innovative technology vendors that can create a strategic plan focused on driving positive financial results while delivering a high-quality, reliable, and secure streaming service and effective business cycle flywheel to offset losses to their traditional linear business. It's paramount that media companies focus on reducing operating expense, improve content monetization, work with a limited set of vendor partners, entertain outsourcing when it makes sense, and implement advanced data analytics and GenAI/AI within workflow processes to drive efficiencies and positive financial results.''