One year ago, we began our first annual AlixPartners Media & Entertainment Industry Predictions Report by stating that "the media and entertainment industry has always been a poster child of creative destruction."
Fast-forward to year two, and that sentence still rings true—in fact, the destruction and competition may have only grown fiercer.
AI advances have made major inroads in the past year and will continue to serve as the major technological force disrupting business and operations across the media industry. From a creative perspective, AI has further penetrated the TV and film sectors, where practical, easy-to-implement use cases with measurable outcomes will lead the way in 2025. But we don't expect the technology to replace human talent; it should only enhance creative output. AI is also disrupting the video gaming, casino gaming, sports betting, and search markets, shifting traditional business models to meet consumer preferences.
Legacy media and advertising businesses are seeing a similar need to transform business models as subscription revenue moves from Pay TV to streaming, while advertising revenue moves from linear to digital. The continued rise of retail media will evolve where companies place their ad dollars to match consumption habits.
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