1. WHAT ARE THE MAIN TRENDS IN THE MEDIA & ENTERTAINMENT SECTOR?

The M&E sector is being negatively impacted by a series of factors, primarily geopolitical issues and cyber threats, which are leading to a general increase in publishing costs. The production and distribution phases are struggling to keep up with a demand that continues to grow.

It is important to note that the revenue composition of the M&E sector shows digital revenues as the largest share (representing more than half of total revenues), a growing trend that is expected to continue in the coming years.

Therefore, it is essential, even for the Media & Communication sector, to leverage innovation and adopt new digital technologies to respond to the challenges of an increasingly concentrated market.

From a technological perspective, AI plays an increasingly significant role in the media sector, not only in content creation and distribution but also in optimizing advertising strategies and personalizing the user experience. New horizons of interactive entertainment, such as augmented reality, are also being explored, promising to open up further business opportunities.

3. DOES THIS EVOLUTIONARY PROCESS ALSO AFFECT THE AUDIO SEGMENT?

Some of the most interesting developments in the M&E sector in recent years have come from the digital audio market. Monetization models are well underway, and interest in the market is growing.

Within the broader audio landscape, podcasts represent a rapidly expanding segment, fostering strong personal connections between hosts and listeners. These relationships create an engaged audience that is more receptive to advertising.

In general, consumers expect podcasts to be free. However, when it comes to audiobooks, expectations are quite different consumers regularly pay for both downloads and subscriptions.

The challenge for industry players is to transform podcast content into premium offerings similar to audiobooks, thereby justifying a recurring revenue stream from consumers while complementing advertising-based monetization.

5. HOW IS ENGINEERING SUPPORTING COMPANIES IN THE M&E SECTOR TO ACHIEVE THESE GOALS?

The future of the M&E market is deeply shaped by the ongoing Digital Transformation within companies.

The Digital Transformation of Media will require a significant reduction in costs and, most importantly, in the time required to make content available and consumable.

In this context, a centralized view of activities and full integration with external providers can certainly accelerate processes.

The Engineering Group offers a diversified portfolio that includes proprietary solutions, best-of-breed market solutions, and managed services. It continues to expand its expertise through M&A activities and partnerships with major technology players.

Supporting sports, content production, emerging technologies, and new media industry trends, the proprietary EngGPT platform is proving to be a powerful and flexible tool. It plays a key role in analyzing current phenomena such as piracy, the rise of FAST channels, streaming, and market trends.