Revenue Growth Programs for Media & Entertainment Companies

Johnny Grow

Revenue Architects for Communication, Media & Entertainment Companies

Ready to accelerate business growth? Speak with a media consultant

Put Business Growth Drivers Under the Spotlight

There's a lot to learn from the highest growth Media and Entertainment companies.

Research performed for the Business Growth Report found that the Best-in-Class Media and Entertainment companies (i.e., the top 15% measured in revenue growth) outperformed their peers by focusing on a small set of success criteria and using best practices to predictably scale revenue growth.

For example, four of the most influential drivers of media company growth were innovation, accelerated customer acquisitions, gains in customer lifetime value and improved customer retention.

The research also found that what most separated the Best-in-Class performers from all others was the adoption of evidence-based best practices for each of the above growth drivers. Here are some research extracts to consider.

The top growth companies led innovation with highly specific buyer insights and applied innovative combinations of content, distribution, packaging, pricing and payment. They understood capture management, applied strategic pricing, delivered contextual offers, and used technology to create new offerings, bundles, promotions, pricing and discount models.

The companies with the highest new revenue streams invested 17-21% more funds into transformative innovation. By comparison, media companies with lower new revenue streams allocated more than 90% of their budget to incremental innovation, which is typically limited to improving existing products.

The innovation research found that shifting the innovation budget allocation toward more transformative innovation achieved annual revenue growth of 1.4 to 2.1 percentage points and EBIT margins by 1.9 to 2.9 percentage points.

Customer-segment and persona-based engagement, highly relevant and contextual offers, and cross-channel device agnostic accessibility were three factors used by the Best-in-Class to achieve the highest subscriber conversion rates. Applying technology, especially artificial intelligence (AI), was extremely influential in delivering intelligent upsell, cross-sell and bundled offers that converted.

Using these best practices to advance from Median to Best-in-Class benchmarks increased subscriber acquisition rates by an average of 5.1 percent and lowered acquisition cost by an average of 4.3 percent.

The top performers maximized lifetime value of media subscribers using subscriber lifecycle management. They welcomed new subscribers with media rich onboarding, drove measured experiences with personalized subscriber journeys, delivered omni-channel customer engagement and rewarded subscribers with loyalty programs. They boosted ARPU with intelligent upsell and cross-sell recommendations.

These factors increased annual revenue growth from existing customers by an average of 2.6 to 3.3 percentage points and EBIT margins by 3.8 to 4.6 percentage points.

A relentless focus on subscriber retention was a hallmark among top performers. The data illustrated that most media and entertainment companies have adopted customer churn forecast reports. However, the Best-in-Class went a step further to advance from customer churn prediction to prevention. They used AI-powered predictive analytics technology to show not just which customers were at risk of defection, but why. Knowing why subscribers churn is more powerful than knowing which customers will churn as it allows companies to prevent customer attrition before it happens.

The data advised that improving subscriber churn from Median to Best-in-Class levels grew annual revenue by 3.9 to 5.8 percentage points and EBIT margins by 4.4. to 6.7 percentage points.

Revenue Growth Programs for Media & Entertainment Companies

New business models, distribution platforms and transformative technologies create new growth opportunities. But one thing remains constant. To scale revenue growth you need an operational framework that focuses on the most important business growth drivers and leverages best practices.

The Johnny Grow Media & Entertainment Growth Formula is a business growth framework derived from industry research, built on evidence-based best practices and refined over many years. It's a fact-based approach that orchestrates the optimal combination of growth strategies, best practices, and supporting technologies to accelerate and maximize company growth.

Evidence-based best practices are prescriptive methods backed by media industry benchmark data that show what the highest performers do differently than their peers, and how they do it.

Media & Entertainment Growth Formula
Media and Entertainment Growth Formula | Source: The Business Growth Report

Best practices drive company growth using repeatable methods. They shift unsupported ideas that lack predictable outcomes to prescriptive guidance that achieves forecasted results. And they are optimized to minimize investments, save time, reduce risk and improve outcomes. Because they are data driven, they can be modeled to show investment, cash flow impact, time to value and ROI.

A single media and entertainment best practice will deliver incremental revenue growth. A collection will deliver exponentially more.

The research shows achieving 5 or more evidence-based best practices creates synergies that drive topline revenue improvement 11% on average, and EBIT improvement 21% on average.

Best Practices

Media and Entertainment Consulting Solutions

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M&E Growth Formula

The best Practices to maximize company growth in the minimum time, cost and risk

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Customer Experience Management

Deliver differentiated customer experiences for increased customer lifetime value and retention

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Innovation & Market Disruption

Create differentiation that increases margins, accelerates revenues and grows companies

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Marketing Transformation

Shift from incremental to exponential marketing sourced revenue growth

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Brand Development

Increase market reach, company recognition and business growth

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Sustainability

Drive sustainability to do well (make money) and do good (reduce carbon) at the same time

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Company Culture

Build a growth culture to improve labor productivity and customer engagement

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Artificial Intelligence

Use AI to increase productivity and drive performance improvements

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Salesforce Media Cloud

Merge industry insights and best practices with the top media technology platform

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An Onramp to Accelerated Revenue Growth

Art of the Possible Workshop
Art of the Possible Workshop

An Art of the Possible workshop shows what's possible in maximizing revenue growth. It's helpful if you are unsure where to begin, or in the process of creating a revenue growth plan.

The workshop separates hype from fact and applies industry benchmarks to compare the many ways companies can drive extraordinary growth.

We review revenue growth research, best practices and technologies to define a revenue strategy that automates and maximizes systemic revenue growth.

See the workshop agenda.

Flexible Services

We work with movie studios and streaming companies, broadcast and cable networks, gaming companies, and production services providers.

We offer flexible services to accommodate different levels of engagement.

1

GUIDE ME

An Advisor Approach
  • Maximum flexibility
  • Minimum business interruption
2

DO IT WITH ME

A Co-creation Approach
  • Maximum collaboration among teams
  • Maximum learning and knowledge transfer
3

DO IT FOR ME

A Turnkey Approach
  • Fastest time to value
  • Highest performance results

Contact us for an introductory call with a media consultant, or to discuss the options to achieve your objectives.

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