In today's digital economy, the majority of businesses face problems, opportunities, and dangers. According to research, company modifications are required to properly navigate in this environment. But, there are various hazards to be aware of along the process. Digital disruption enters businesses in unexpected ways, requiring every firm to be prepared. The digital wave is currently changing established corporate methods and structures, and consumers are increasingly adopting smart items in order to live more convenient and connected lives. The only effective way to deal with digital disruption concerns is to improve customer service (Debrett, 2010). This means that most of the organization will only survive digital disruption challenges if they develop the right solutions, capabilities as well as platforms.
Digital disruption can be unpredictable, messy and sometimes overwhelming. However, it is also powerful, inescapable as well as incredibly motivating. The commercial television industry is in the midst of a digital revolution with online videos spreading like wildfire allowing the consumer to watch whatever they want, whenever they want. Commercial television industries are being cut out of the equation, and if they don't develop effective strategies to deal with the challenge, they will become passé (McQuivey, 2013).This paper explain some of the ways commercial television industries can use to leverage digital disruption and to deal with its challenges to enhance the consumer experience and to drive business value.
Introduction
Digital disruption refers to the change which occurs when new digital technologies, as well as business models, affects the value proposition of the already existing goods and services. ` In most cases, digital disruption is a lifetime opportunity, but on the other hand, it is littered with risk. The main challenge facing the business executives is determining whether the right balance has been achieved when it comes to these extremes. Businesses are required to embrace digital disruptions and to even plan for it. This prevents the wave of digital disruption from washing away the success of the business while leading to new opportunities as well as further growth for the business. Digital disruption leads to changes in consumer demands which mean that working along the tide allows businesses to fulfill the emerging needs, ensuring that the existing customers are happy while opening opportunities for new customers (Debrett, 2010).
In the current world, the living room is among the major places where people are consuming content. Research has indicated that the number of people watching TV using the traditional cable is declining. Video entertainment is now popular like never before with the decline in traditional cable viewing being a bi-product of the media landscape where people can view content on-demand anywhere, using any device at any time. Following the evolution of the changing television distribution methods, the companies dealing with traditional cable are experiencing a lot of pressure to develop new ways of broadcasting their content to meet the changing needs of their customers (McQuivey, 2013).
Discussion
Currently, most of the companies dealing with commercial television are in full swing to do everything they can to be one step ahead to keep up with the needs of their stakeholders. Some of the challenges the companies are facing include meeting the expectations of their stakeholder in the current digital age. This is so because the customer's expectations are now higher than they were some four years ago. Secondly, the commercial televisions are faced with the problem of finding and maintaining individuals who can digitally transform the industry. However, the commercial television is also experiencing some opportunities like digital disruption from within. This means that the already established players are constantly being replaced by digital native newcomers.
If the commercial televisions remain stuck in the old technology as well as the obsolete practices, their audience will splinter, the Ad rates will go down, and viewers will lose the habit of watching television. For instance, research has indicated that commercial television viewing in countries like the US and the UK have reduced by 3 to 4 percent annually on average since 2012. This means that if the companies will not embrace the new technology, and come up with ways to repurpose and exploit the new technology, then in future commercial television may become passé (Debrett, 2010).
The way commercial TV deals with digital disruption is now more critical than ever before. To ensure that they are not becoming extinct, executive officers with this field needs to determine whether they take digital disruption as a risky threat, an opportunity or innovation. What comes out clear is that trying to survive with the status quo mindset is not enough and will not help when dealing with challenges of digital disruption. One of the ways that commercial television is using to respond to challenges in the digital disruption is adapting to a digital-first model. This model allows commercial television to predict and react to latest trends in content consumption with agility enabling them to deal with competition within the market (McQuivey, 2013).
Additionally, most of the commercial televisions have developed a culture that fosters innovation within their organizations. Research has indicated that firms with strong governance and risk practices are more unlikely to disrupt as their natural strength looks at the strict return on investment (ROI) at a period. Innovation in commercial television needs a culture of experimentation, an approach which 'fast fails' any project that shows no signs of success as well as a funding model that permits learning and testing (Premkumar, 2003).Through this culture, commercial televisions can decide whether to develop a separate challenger subsidiary at the edge of their organizations or to adapt their funding methods to encourage experimentation.
Another technique used by commercial televisions to deal with digital disruption challenges is maintaining effective integration and collaboration with different organizations as well as stakeholders within the market. Commercial televisions require partnership with technology firms to ensure that the technology being incorporated is the right one for the operating environment which will allow stakeholders to interact and innovate even more. Most of the commercial televisions understand that who they are working with matters more than who they are working for (Bustamante, 2004). On the other hand without integrations, commercial televisions can never be in a position to unleash the full potential of digital technologies. Integration creates cohesion in every marketing platform and channel. Additionally, when the internal marketing functions are integrated, the commercial television industries will effectively understand data patterns as well as the customer interactions.
Moreover, commercial televisions are now focusing more on solutions instead of services being offered. This is mainly because the value proposition within the industry is shifting from the sale of services to performance management of the services. The fact remains that if an organization makes something that turns out to be profitable, then it invites competition. The commercial television industries are now developing their niche where they are dealing with consumer needs. With the huge opportunities provided by the digital economy to excel and build a niche, the commercial television industries are moving out of the pre-digital mindset to recognize the opportunities. With enough innovation, creativity and a solid digitized platform, the industries can navigate digital disruption (McQuivey, 2013).
Section II
The Implications of Changing Digital Distribution Strategies
We are currently standing on the brink of technological revolutions that will fundamentally change the way we work, live and relate to each other. Following its scale, complexity, and scope, the transformation will turn out to be unlike anything human beings have experienced before. It is yet to be discovered how the transformation will unfold but what is clear is that the response to it have to be compressive and integrated, incorporating every stakeholder of the global polarity from private to public sectors. Research has indicated that digital tools have changed our working methods just like the way they have changed our perceptions towards commercial television (McQuivey, 2013).Commercial television companies cannot escape the digitalization of distribution channels as change have been happening up and down the value chain. However, until now there is little guidance for distributers concerning where to begin as well as the strategies of using the digital tools to attain a competitive advantage.
When it comes to the economic consequences the implications of changing digital distribution strategies can be weighed in different ways. The changing digital distribution strategies have negative and positive implications. To start with it has come out clear that distribution is among the major aspects of content marketing plans. However, streamlining the digital distribution efforts is not easy. For instance, 70 percent of commercial television marketers planned to produce more content in 2016 than 2015, yet it's only 38 percent who saw the content effective. Part of the reason for this gap is that following the lack of effective digital distribution strategies as well as tools, commercial television marketers shared the right content but with poor and outdated means. This negatively affected the general economic status as the commercial television made huge loses. For example, the IBM indicated that four in every ten marketers faced challenges delivering the content due to the use of outdated distribution strategies (Premkumar, 2003).Additionally, the NBC which dominated the US television during the 80s and 90s has also experienced hard economic times following the changing digital distribution strategies.
Moreover, due to advancement in technology, the internet has now eliminated the distribution costs. For instance, digital movies are being sent from Hollywood to different countries for pennies. This has reduced the price of media to those levels leading to economic problems. This is mainly because the commercial television companies starving of revenue will not make much profit from artists and movies. Most of the commercial television companies are finding it hard to make money on original work which is curtailing the kind of innovation that the Internet promised. Instead of using the commercial televisions to air their works and tell their stories, most of the artists, movie directors as well as marketing agents are turning to crowdsourcing as it cuts the cost (Bustamante, 2004).
However, the changing digital distributions strategies have some positive economic implications. To start with some of the commercial television companies have increased their profit margins following the digital distribution strategies. This is so because they can align their content with the right channels which are the best things their brand can do to win the distribution game. Using the digital distribution strategies, the commercial televisions are now reaching many viewers thus increasing their profit margins. Additionally, research has indicated that channels industries effectively using the digital distribution strategies enjoy large retailers, wholesalers as well as fewer levels within the channel as compared to those using the traditional distribution strategies.
How to weigh the implications of changing digital distribution strategies regarding their cultural consequences
Digital distribution strategies have different consequences when it comes to the cultural aspect. To start with the digital distribution strategies have provided the masses with an effective medium to express their opinions. For instance, the politicians are currently using crowd funding through the digital media to express their views to the citizens (Premkumar, 2003).Additionally, research has indicated that direct democracy has been considered impractical in most countries, however, digital distribution strategies offer an opportunity for citizens to directly participate in public as well as political decisions affecting their countries.
Moreover, the digital distribution strategies enable people to interact with each other on a daily basis. For instance, through the commercial television people from different cultures can learn and interact with people from other cultures. Through the use of digital distribution strategies, commercial televisions have enabled people to learn touching stories from people of different faith as well as communities. This means that the digital distribution methods have provided unique opportunities for mankind to aspire to a tolerant and civilized society (Bustamante, 2004).
The digital distribution strategies, therefore, enables people to access culture in new and improved ways. The cultural content aired by the commercial televisions drives people towards digital as well as adopting new and improved technologies as they emerge. Through effective use of new and improved digital distribution strategies, the division between different cultures is reduced (Debrett, 2010). This is mainly because the strategies create opportunities to showcase the reputation for innovation as well as creative risk-taking from different cultures. Additionally, the changing digital distribution strategies have paved the way for new formats as well as mediums aimed at cultural production, art forms as well as experience. Through the dynamic distribution strategies, different cultures are in a position to access and participate in different events. The strategies support new forms of digital and cultural participation while boosting the community engagement in culture through the use of digital distribution and content.
Conclusion
It is therefore evident that the changing digital distribution strategies have led to improvements when it comes to productivity as well as higher economic growth. Commercial television companies are required to embrace digital disruptions and to even plan for it. This prevents the wave of digital disruption from washing away the success of their business while leading to new opportunities as well as further growth for the business. It is therefore clear that the changing digital distribution strategies have benefited the commercial television in many ways. Additionally, the dynamic strategies have resulted in negative as well as positive economic impacts and have changed most of our cultural aspects.
References
Bustamante, E. (2004). Cultural industries in the digital age: some provisional conclusions. Media, Culture & Society, 26(6), 803-820.
Debrett, M. (2010). Reinventing public service television for the digital future. Intellect Books.
McQuivey, J. (2013). Digital disruption. Unleashing the next wave of innovation.
Premkumar, G. P. (2003). Alternate distribution strategies for digital music. Communications of the ACM, 46(9), 89-95.
