by 2021, TMTs need to evolve, but how?
TMTs (Technology, media & entertainment and telecom) are shifting quickly due to the COVID-19 pandemic. New needs and behaviors caused big companies to rethink their business models and their forecasts. Deloitte Insights[1] offer us a good preview of 2021 and the next decade.
The impact of the company on the society
Companies today are trusted by people, sometimes more than societal institutions. This power that consumers give to these companies is important and the ones who are not able to maintain this trust will not be able to pass this decade. Being one of the largest companies in the world[2]offers companies good foundations to elaborate and to create a trusted link between their clients and them.
A new business model
The health crisis forced physical stores and locations to close, causing companies who rely mostly on them to shift from a fully physical business model to a hybrid type. Theatres and gyms are an example. Partnerships are created between big companies in this sector. For instance, Sony signed a contract with Netflix to publish their movies on the SVOD platform[3]. Apple, which is shifting from mainly hardware revenue to a more diverse portfolio, launched during the pandemic One+, including Apple Fitness+[4], an app dedicated to fitness and workout right at home. Companies also need to focus on data, . Data is the future of companies and they need to take power back over them.
Relationship with customers
Society is shifting quickly. With the growth of social networks and the Internet, consumers are now one of the main stakeholders of companies. Taking their opinion seriously can improve a company’s influence. They need to create multiple communication channels with the consumers, through social media and assert their online presence to stay ahead of society.
New experiences
The expansion of remote work through Zoom or Microsoft Teams shows that some companies are able to create new experiences never seen before. Zoom was able to add more than 5000 servers each day during the first weeks of the pandemic[5].
Behaviors are also changing. The line between home and office is blurred with less and less differentiation. People are more willing to spend time home and crave new tools like Teleparty, a tool used to sync up families and friends around a movie and allow them to chat in real-time, a way for them to feel together. E-sport is also rising, with cash prizes never seen before [6]
Companies are changing, following the society. That was the main axes companies need to tackle before the end of this pandemic.
[1] https://www2.deloitte.com/us/en/insights/industry/technology/critical-issues-for-companies-to-address.html/
[2] https://www.investopedia.com/stock-analysis/021815/worlds-top-ten-media-companies-dis-cmcsa-fox.aspx
[3] https://www.nytimes.com/2021/04/08/business/sony-netflix-streaming-deal.html
[4] https://www.forbes.com/sites/davidphelan/2021/01/02/apple-fitness-plus-7-reasons-it-should-be-your-new-years-resolution/
[5] https://www.gsb.stanford.edu/faculty-research/case-studies/zoom-cultivating-human-connection-digital-world
[6] https://estnn.com/biggest-cash-prizes-in-esports/