The future of the media industry: transformation is on air

The transformation of the media industry is no longer on the horizon – it’s already here.

 

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 looking for 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 their core.

 

Generation Z: 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. Not only that, their cultural and financial influence is radically redesigning the media landscape.

 

The rise of digital giants: CTVs have taken over the remote control! 

 

The CTV revolution is redefining the viewing experience, which has shifted from a one-to-many broadcast model to a fully personalised one-to-one experience. In 2023, CTV penetration in the US reached 88 per cent, signalling a shift from passive consumption to an interactive, tailored experience. YouTube, once known for short videos, now leads as the living room’s preferred screen.

 

2025 is expected to be the year of shopping on TV, with giants such as Amazon and Walmart heavily investing in shoppable TV experiences. Digital video ads have already surpassed traditional TV, with over 66 per cent of global investment flowing to Google, Meta, and Amazon. This also marks a fundamental shift from traditional production hubs such as Hollywood to the creator-sphere. 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  

 

Data is the foundation for all future technologies, and has become 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 used in media, while others are still in early stages of development, such as 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.

 

Be where your audience is!

 

The transformation driven by data and AI opens new opportunities for strategic collaboration with digital platforms that leverage these technologies to maximise audience engagement. Collaborating with platforms such as YouTube provides solid reach and new monetisation opportunities.

 

Take Channel 4’s 2024 social video strategy: it led to a 169 per cent increase in premium TV series viewership on YouTube and a 75 per cent jump in YouTube revenues, resulting in over 2.3 billion total views across social platforms.

 

Encourage and drive greater collaboration with the vendor community

 

At the Leaders’ Briefing of the DPP, the international media and technology association, executives expressed concern about vendors failing to deliver on promised solutions as traditional media companies accelerate digital evolution.

 

“No organisation can succeed alone in the current high-change environment,” said DPP CEO Rowan de Pomerai. “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 have deep industry understanding, demonstrate proven expertise and deliver tailored solutions. But 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, especially in the fast-evolving fields of AI and gen AI.

 

Embrace innovation to lead the transformation

 

At NTT DATA, we recognise that innovation drives transformative change. As a global partner for the media industry, we empower our clients to drive growth by leveraging emerging technologies such as AI and gen AI. 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.

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by Jani Pavlovic, Media Practice Lead and Nina Buisson, Media Client Partner, NTT DATA

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For more insights on media industry transformation or to explore how NTT DATA can support your organization’s digital journey, contact us here