In the last few years, the media and entertainment (M&E) sector began adopting the Internet of Things (IoT), causing a paradigm shift in the way things are done. Although the number of IoT devices is small and the technology is nascent, this trend of IoT in media and entertainment is expected to change soon, and the sector is set to benefit from it.
As large-scale adoption of IoT technology rises, media companies will be presented with myriad growth opportunities. It is up to them to realize the potential role IoT will play in their growth, the key success factors, and the IoT domain they should operate in.
Media Industry & IoT Implementation
According to a study by Accenture, the number of connected devices is expected to rise beyond 40 billion by 2024. This rapid growth is set to enable a plethora of new IoT Applications in media and entertainment and open major new opportunities for media companies to explore.
One study by TCS reveals 79% of large global companies already use IoT solutions to track their customers, products, and the premises. It’s clear the number of companies using IoT solutions will only continue to grow year by year.
Challenges To Tackle Before Adoption
Although IoT in media and entertainment can open up new, intimate entertainment experiences for consumers and boost profits, there are various factors that have been slowing down the implementation process. These challenges including the following:
Around the world, various regulatory authorities and government bodies have found it difficult to come up with proper regulations for IoT implementation. Billions of IoT devices collecting data simultaneously are already posing unique challenges. Needless-to-say, improper regulation can lead to miscreants infiltrating M&E corporate networks and exposing confidential information.
Cybersecurity is one major concern for all industries. This is particularly true for the entertainment industry as IoT is associated with more gadgets, programming, machines, and people than ever before. According to the Federal Trade Commission, lesser than 10,000 households using their company’s IoT device can generate 150 million discrete data points on a daily basis. Consequently, this makes it easy for hackers to get their hands on sensitive information.
As the IoT environment continues to grow at an unprecedented rate, many legal challenges are presenting themselves. Many challenges need to be tackled before IoT can be successfully and universally implemented in the media and entertainment industry. Other than data privacy, there are also concerns about cases of gadget breakdown, ownership issues, etc. for entertainment organizations, envisioning the use of IoT.
One of the largest challenges facing IoT in media and entertainment is the issue of companies not being aware of how to quickly undergo a digital transformation in a cost-effective manner.
Moving to the Next Level With IoT
As media and entertainment solutions get more powerful, devices can read and understand consumers in real-time. This presents several interesting benefits that can propel M&E companies to great heights.
Advent of Targeted Advertising
Media companies can target customers with personalized ads based on their immediate needs using data collected from sensors. Companies leveraging IoT in advertising, especially the ones with the right blend of creativity and data-driven decision-making, can derive a lot of value from this development.
Development of Immersive Content
According to IDC, global spending on Augmented and Virtual Reality will reach $18.8 billion by the end of 2020. The ability of IoT to connect and utilize digital information from physical devices has ensured that augmented reality has acquired a new dimension. By means of the use of specialized software and hardware, 3D digital content can be brought into the world, providing an edge for the media companies.
Reaching Wider Audiences
IoT is instrumental to future expansions of the media industry. This is because IoT technology allows M&E companies to predict and understand consumer behavior. Using this information, media companies can understand the emerging needs of the customers they are targeting and tailor their ads for them.
Taking Personalized Content to the Next Level
Media and entertainment companies’ future success is largely dependent on their ability to capitalize on the data at their disposal to create personalized content, ads, and offers for their customers. The creation of such content is an easy job for most consumer identity and access management providers.
Navigating the Ecosystem
To use IoT to their advantage, media companies have to figure out how to identify a business and operating model that balances the development of IoT and management costs with the incremental revenue per user and investment returns. No matter what path they take, there is no doubt that media companies have to navigate the IoT ecosystem, for better or for worse.