The media and entertainment (M&E) industry is poised for significant transformation in 2025, as companies navigate a rapidly evolving landscape marked by technological advancements, shifting consumer preferences, and strategic portfolio recalibrations. According to Javi Borges, EY Global and EY Americas Media & Entertainment Leader, and John Harrison, EY Americas Media & Entertainment Growth Leader, here are the five key trends shaping the future:
- Experiential Entertainment Takes Center Stage - Consumers are increasingly drawn to immersive experiences linked to their favorite media franchises. Theme parks, live performances, and branded events offer businesses lucrative opportunities to diversify revenue streams and counter declining linear TV income.
- AI Goes Mainstream - Artificial intelligence and generative AI are set to revolutionize content creation, distribution, and personalized marketing. M&E companies are focusing on demonstrating ROI while addressing governance challenges like copyright and safety.
- Streaming Profitability Gains Momentum - With major platforms reaching profitability milestones in 2024, 2025 will test their ability to sustain growth. Strategic collaborations and potential consolidations could reshape the direct-to-consumer landscape.
- Linear TV at a Crossroads - As cord-cutting accelerates, M&E executives face tough decisions: divest or manage the decline of linear TV assets. A successful sale or spin-off could signal the next phase for this segment.
- Sports Content: A Fragmented Must-Have- Sports remain a cornerstone of engagement, but fans are frustrated by fragmented access. The rise of sports-centric streaming bundles and better app integrations could address this issue.
For a detailed exploration of these trends, read the full article by EY's experts in the link below.