Music & Entertainment, Retail Facing Major Challenges
With serious questions concerning consumer spending during the economic downturn looming over both industries, the Music & Entertainment and Retail industries will both have to meet coming challenges with innovative solutions, according to an outlook report on American industries from Deloitte.
Driven in part by technological changes, the Music & Entertainment industry will see perhaps the a more fundamental set of changes in 2008. Content proliferation is likely to see many important technological developments. For instance, Deloitte asks, “Will people want to watch episodic TV on their telephones?”
As content delivery becomes more varied and internet-based, piracy will be a major issue, both for movies and music. Digital providers like iTunes, however, may see the rise of significant, legal competition, all the while being forced into de facto competition with pirated content.
The Retail industry is facing a particularly stark economic outlook. “In response, retailers should focus on maintaining cash flow, keeping inventories lean and payrolls low, and rationalizing other costs, particularly selling, general, and administrative expenses.”
Coupon-based marketing strategies may once again be an effective strategy in an environment of lowering levels of discretionary spending.
Shopping cart systems that incorporate electronic games for children, handheld shopping scanners, and interactive kiosks all made headlines in 2007 and are expected to generate continued industry attention in the coming year.
Deloitte says the industry faces growing pressure to heighten standards in three key areas:
- Product transparency
- Privacy and security
- Green business practices
The report also looks at the outlook for the Gaming, Print Media and Advertising industries.
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