Media and Entertainment Provider Harnesses Uncertainty about the Future to Decide Where to Place Bets

Situation Analysis

As emerging technology and shifting consumer preferences foretold a sea change in the production and delivery of movies and television, one international entertainment company recognized that it needed to anticipate future trends so that it could leverage its strengths in filmmaking, television, and retail entertainment and identify where to place key bets to capture additional value.

Discovery & Solutions

To address the challenge, SDG began with a deep analysis of the global film and entertainment business, including consumer attitudes and spending, distribution technology trends, competitor strategies, and future geographic entertainment markets. Based on this research, SDG developed scenarios for how entertainment would be delivered in the future. Using sophisticated financial and business models, SDG was able identify the economic drivers of risk and uncertainty for the global organization and develop and evaluate several distinct strategies for shoring up existing businesses and identifying investment-worthy markets and technologies.

Results & Impact

In the end, SDG helped the company re-strategize five business areas:

• Worldwide Electronic Distribution. A new corporate organization was created to cultivate businesses in promising international markets, including China, India, and Latin America. In the first three years after implementation, the company made over 20 television platform and channel investments that more than quadrupled in value.
• Media Production Business. Operational alternatives to increase the value of an existing television production business by $50 million were developed.
• International Growth and Development. International organizational structure alternatives, communications infrastructure and support processes, and an asset maximization plan across all product lines were created. SDG also prioritized geographic and business opportunities for local markets.
• New Media. SDG was able to identify potential business economics and entry strategies for both at-home and out-of-home entertainment.
• Motion Picture Portfolio. SDG benchmarked decision-making processes for individual film production decisions and for the motion picture portfolio. Based on this analysis, a five-year film industry database was developed to evaluate individual film decisions and examine risk profiles of annual portfolios.