An industry in deep transformation
The transformation in the media industry is no longer on the horizon - it is here, and it is disrupting the industry. The only path to sustainability is through adaptation; it has transitioned from optional to essential.
The mass audience is now a thing of the past, replaced by a mosaic of highly fragmented audiences: Digital natives seeking niche and personalised content, traditional viewers loyal to conventional broadcast offerings, multicultural groups searching for localised or international content, and sports enthusiasts desiring interactive and gamified experiences.
The rise of connected TV (CTV) and digital platforms, combined with advances in AI and universal broadband access, is challenging traditional models, forcing companies to rethink their strategies at the core.
Generation Z as a key driver for change
At the heart of this transformation is a continuous generational evolution.
Generation Z marked a significant breakpoint as the first to grow up entirely online, touching screens rather than turning pages. This generation is reshaping not only how content is consumed but also how it is created, marketed, and delivered. They demand seamless, on-demand experiences across all devices, from smartphones to CTV. Their cultural and financial influence is radically redesigning the media landscape.
The rise of Digital Giants: CTVs have taken over the remote control!
The CTVs’ revolution is redefining the viewing experience, shifting from a "one-to-many" broadcast model to a fully personalized "one-to-one" experience.
In 2023, CTV penetration in the U.S. reached 88%, with 75% of viewing time spent on apps in 2024, signalling a shift from passive consumption to an interactive and tailored experience.
YouTube, once known for short videos, now leads as the living room’s preferred screen, surpassing mobile viewing. This is a prime example of how platforms have evolved to meet viewers’ desires for personalised contents.
2025 is expected to be the year of shopping on TV, with giants like Amazon and Walmart heavily investing in shoppable TV experiences. Platforms are integrating e-commerce directly into CTVs, making shoppable and personalised ads a dominant trend.
The rise of "one-to-one" advertising is changing ad distribution. Digital video ads have already surpassed traditional TV, with over 66% of global investment flowing to Google, Meta, and Amazon.
This also marks a fundamental shift: from traditional production hubs like Hollywood to the Creator-sphere, where influencers and digital creators deliver highly targeted and engaging content.
The result is a seamless flow of entertainment, ads, and shopping opportunities, putting the viewer at the centre.
To successfully navigate this transformation, and to meet the needs of new audiences and their way of experiencing content, organisations should consider the following recommendations
Modernise and simplify content workflows using Data and AI
With this shift underway, data, AI, and efficient content supply chains are emerging as central enablers of the media industry’s future.
Data is the foundation for all future technologies, particularly AI. It has become the lifeblood of any data-driven company, making it an invaluable asset for innovation and growth. Successful organisations are learning to listen to what their data tells them about their audience's needs and preferences, transforming these insights into better experiences while building lasting customer relationships. The real challenge? Making sense of the overwhelming amount of information to find the meaningful patterns that matter.
AI is helping media companies work better, to give audiences what they want faster - from analysing videos to creating summaries and personalising content. AI helps find the right viewers for ads and recommends the shows people will enjoy. Some AI tools are already being utilised in media, like metadata creation, summarisation or localisation, while others are still in early stages of development - like live content creation and operations, conversational search, and large-scale content indexing. As AI gets cheaper, companies will find even more ways to use it. Successful AI integration in media requires a balance between innovation and ethical considerations, along with regulatory compliance.
Lastly, efficient content supply chains, powered by cloud-based platforms and automated workflows, streamline operations, enabling faster and more cost-effective content distribution. As cloud technology matures, decisions between cloud and on-premises solutions are increasingly driven by operational and cost factors, with the cloud’s opex model aligning costs with revenue, making it an attractive choice in today’s fragmented distribution landscape.
Capitalise on social and digital platforms to drive continuous viewer engagement - Be where your audience is!
The transformation driven by data and AI not only optimises content distribution but also opens new opportunities for strategic collaboration with digital platforms that leverage these technologies to maximise audience engagement. Collaborating with platforms like YouTube provides solid reach, advanced analytics, and new monetisation opportunities.
Take Channel 4’s 2024 social video strategy as an example, it led to a staggering 169% increase in premium TV series viewership on YouTube, a 75% jump in YouTube revenues, and an 81% rise in TikTok viewership, resulting in over 2.3 billion total views across social platforms.
Encourage and drive greater collaboration with the vendor community
At the DPP Leaders' Briefing, executives expressed concern about vendors failing to deliver promised cutting-edge solutions. This gap widens as traditional media companies accelerate digital evolution while platforms expand into new media territories.
"No organisation can succeed alone in the current high-change environment. We believe that media companies can accelerate their success by sharing experiences and ideas with their peers and partners, and by collaborating closely with their technology and service providers."
To address this growing disconnect, long-term success depends on building trust through strong partnerships with technology visionaries, particularly as technological complexity increases.
Media companies need strategic collaborators, who go beyond vendor relationships, and who are visionary, have deep industry understanding, showcase proven expertise, and deliver tailored solutions.
No single company can master all emerging technologies alone. Collaborative innovation becomes essential to stay ahead of the curve.
Above all, these partnerships should be built on transparency and a shared commitment to solving real challenges, especially in the fast-evolving fields of AI and Gen AI.
Embrace Innovation to lead the transformation
To stay competitive, companies need more than tailored solutions. They need a partner who understands the media industry's unique challenges and one who can translate innovative ideas into concrete outcomes.
At NTT DATA, we recognize that innovation drives transformative change. As a global partner for the media industry, we empower our clients to drive growth by leveraging emerging technologies like AI and Gen AI.
We don’t just focus on experimentation; we ensure our clients can scale solutions effectively, keeping pace with rapid technological advancement.
Our mission is to connect people with technology, delivering long-term value not only through business outcomes but also by promoting environmental sustainability, social impact, and business resilience.
By combining advanced technology with deep industry insights, we turn ideas into tangible results, fostering innovation that creates real impact and a sustainable future.
Now is the time to act, turning today’s challenges into tomorrow’s successes.