Forging new domains—Analytics in entertainment
Short Takes...on Analytics
A blog by Jeffrey Mischka, principal, Deloitte Consulting LLP and Jordan Wiggins, senior manager, Deloitte Consulting LLP
Analytics is firmly entrenched in well-structured business domains, like supply chain, pricing, and risk. Business functions across a variety of industries are realizing the value of insight-driven decision making and are achieving better business outcomes with analytics. It sometimes seems that analytics has made its way into every nook and cranny of the global marketplace. But what if the most interesting territory for analytics is just ahead? Some industries are just now beginning to explore what analytics might offer and what can be gained by moving from intuition-based decision-making to a fact-based culture. The entertainment industry is one such frontier.
Take 1 - Human predictions have fallen short
The entertainment industry is no stranger to faulty predictions on the part of even the most experienced industry veterans. How many TV show pilots have you watched never to see a second episode? What about the multi-million-dollar "box office hit" that wasn't? How much is invested into sure Hollywood’s “sure things” that in the end fail to deliver on their promise? The truth is that the entertainment industry, which is powered by creativity, may be due for an injection of analytical thinking. Predictive analytics, especially, has the potential to create greater intimacy among entertainment companies and consumers.
Take 2 - Online businesses are succeeding with entertainment analytics
Like many industries, the entertainment industry isn't a one-size-fits-all conglomerate. Traditional studios and big media companies alike are being challenged by online entertainment businesses. Examples include Netflix and Amazon, both of which are now producing original TV content—and using analytics to measure consumer interest and predict successful content types. While some entertainment companies relegate analytics to discrete business units, others are making history using analytics to effectively predict and influence consumer behavior as they deliver relevant content in more consumable ways.
Take 3 – Creativity gets a standing ovation
While the hard facts of analytics may be unnerving to those who have spent their careers in an artistic atmosphere, it won't take long for entertainment executives to realize the value of analytics. At the same time, creativity still reigns supreme. Analytics is not a threat to creativity; in fact it's an enabler. Armed with new insights gleaned from volumes of data across multiple scenarios thanks to analytics, entertainment companies can become even more creative, effective, and profitable.
As analytics forges new domains, we will likely see more innovative uses for analytical processes, technology, and thinking. Traditional businesses would be wise to watch for breakthroughs in other domains and industries—and to take what works back to their own organizations.