New McKinsey technology report outlines key areas of opportunity for media
McKinsey’s 2022 Technology Trends Outlook report has now been published, and it cites some exciting areas of opportunity for the media industry. It found that the media and entertainment sectors at large display a high association with 7 out of 14 key technology trends, across what it defines as both the ‘Silicon Age’ and ‘Engineering Tomorrow’.
- Advanced connectivity
- Applied AI
- Cloud and edge computing
- Immersive-reality technologies
- Industrialising machine learning
- Trust architectures and digital identity
The areas of next generation software development, future of mobility, and future of sustainable development, were also cited by the report as displaying a strong association with the media of today – and tomorrow.
Leading the charge into the metaverse…
Immersive-reality technologies and the emergence of Web3 are two key trends that we’ve looked at a lot on the FIPP.com over the past few months.
Earlier this week, Hearst took over the OMNI Gallery in Soho, to launch its new experiential division HearstX. The department will oversee platforms and campaigns across the physical, VR, AR, and mixed experience spaces, with initiatives such as virtual influencers, VirtuELLE Reality fashion shoots, and a fully playable Cosmopolitan world already in place.
The McKinsey report states: ‘The ability to cater to increased data creation and the growth in the number of connected devices for consumers allow for better entertainment experiences as new devices (for example, AR and VR devices) enter the market.’
… and the practical application of NFTs
One emerging technology that has undoubtedly been hotly debated in the media industry to date, is NFTs. While some have dismissed the phenomenon as nothing more than a passing fad, we’ve seen countless examples of mainstream publishers moving into this area with seemingly high levels of success.
Having interviewed a broad range of experts in this area directly ourselves over the past 18 months, its clear that there is at least one broad consensus on non-fungibles: while today’s headline hype may not necessarily be here forever, the underlying technologies – and opportunities for digital monetisation they represent – are not going anywhere anytime soon.
It’s a reality that the latest McKinsey report underlines, from both a consumer and B2B pov:
‘Web3 enables interoperable games and tokenized digital assets,’ says the report, ‘facilitating new gaming experiences and play-and-earn business models in which in-game rewards (for example, nonfungible tokens [NFTs], governance tokens) are distributed with different utilities.’
‘Creation and ownership of digital media (for example, artworks, video content)—sold as NFTs—allow new business models and creative possibilities while providing artists with more control and, in some cases, ongoing perpetual royalties.’
There are additional insights into streaming, personalisation, and the evolving nature of events, and you can access the report in full here.