Inflo Insight Media & Entertainment - Mark Edmondson FCA, CEO, Inflo
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Inflo Insight
Inflo Insight | Strengthen your advantage
Strengthen Your Advantage
Tradition Embracing Digital Transformation
Media & Entertainment
September 2021
Mark Edmondson FCA, CEO, Inflo
inflosoftware.com
Tradition Embracing Digital Transformation | Media & Entertainment 1
Inflo Insight | Strengthen your advantage
Inflo Insight
Strengthen Your Advantage
Launched in 2021, Inflo Insight delivers thought leadership guides, research and expert opinions
on accounting and audit issues. Our content examines the complexity and challenges audit firms
are facing in an evolving business landscape. Our intention is to summarise and simplify key
trends and takeaways that saves you time, build knowledge and adaptability.
Inflo was founded by former Big Four auditors with the objective of making more progressive
audit technologies and methodologies available to audit firms of all sizes. Our Digital Audit
technology and approach improves the quality and relevance of the audit product for over 85%
of the UK’s largest, non-Big Four firms. Our goal is to educate and support the profession to
embrace change and strengthen your advantage.
About the Author
As the mastermind behind Inflo, Mark aims to transform
the audit and accounting profession by making innovative
technologies and broader expertise available to all.
With the global audit profession facing heavy criticism after
high-profile business failures and frauds, Mark has stepped
forward as a voice for progress. As well as being quoted
in Sir Donald Brydon’s and other audit market reviews,
Mark has been called upon to support international efforts
to modernise and transform the audit and accounting
profession.
Author Mark is a member of the Advisory Panel to the IAASB’s
Mark Edmondson FCA, Technology Working Group as well as the Reference Group
supporting the development of the IAASB’s new standards
CEO, Inflo
for auditing less complex entities. He also leads a US AICPA
working group to tackle innovation barriers through
advancing data standards.
Mark’s efforts centre around developing the relevance and
value of the accounting profession’s work, and ensuring
accountancy offers an exciting career pathway.
Mark has a strong passion for advancing the skills and
expertise of his peers in the profession and Inflo now
performs a key role within education, including within the
ICAEW’s Chartered Accountant qualification.
2021
Tradition Embracing Digital Transformation | Media & Entertainment 2
Inflo Insight | Strengthen your advantage
Tradition Embracing Digital Transformation
The digital shift we are experiencing is not unique to any specific industry. The integration of
digital technology is fundamentally changing how businesses operate and the value they provide
to customers.
While it will look different from business to business these changes also impact on organizational
culture. This creates a need for constant challenge, experimentation and being comfortable with
failures.
Banking has moved from branch to online. Contactless cards and smart phone payments are
taking over from physical cash.
Even in highly sensitive fields such as healthcare and government we have seen rapid expansion
of digitization and the use of data.
And while some of this digitization may have been expedited by a global pandemic, most was
happening before 2020.
Leading professional service firms recognize that to retain an advisory position they must keep
pace with, or be ahead of, the transformation progress of their clients. How can a client view a
firm as a premium advisor for services like cyber security if services such as audit are delivered
using legacy technologies?
The following case studies give an insight in to how other sectors have digitally transformed and
the key takeaways for professional services on their own digital transformation journey.
In this article we will be taking a closer look at the Media and Entertainment industry focusing on
three key areas:
Client Need and
Expectation
Continuous improvement
What professional service
firms can learn
Tradition Embracing Digital Transformation | Media & Entertainment 3
Inflo Insight | Strengthen your advantage
Media and Entertainment
The Digital Shift in the Consumption of Film, TV and Music
The entertainment industry has always had an eye on the next big thing. You only need to look at
the improvements to special effects from one movie to the next to see they are embracing digital
transformation.
There has been a dramatic digital shift in the consumption of Film, TV, and Music. We are no
longer constrained by the TV guide. Shows can be watched anytime, anywhere, on a broad range
of devices. Music has moved online and can be streamed instantly on your phone instead of
waiting for a physical CD to be shipped.
Consumers have far more options for content and competition for attention is high. Companies
must remain creative, flexible, and progressive to meet the demand for 24/7 entertainment
globally.
YouTube
YouTube was designed by three former PayPal
employees in 2005 as a platform for anyone to
share videos. It is now not only a go to search
engine, but a viable competitor to mainstream
TV as well as powerful marketing tool.
1. Client Need
According to Hootsuite’s Global report, YouTube is ranked the second most viewed website in
the world, second only to Facebook. YouTube averaged over 23 hours of streaming per month on
android phones in 2020.
Consumers turn to influencers for product advice, watching videos which can initiate purchase
and create brand loyalty. Companies engage with influencers to access large online audiences
who follow and trust an individual. YouTube influencer content can provide in-depth product
demonstrations or showcases for consumers.
The client journey changes and improves over time, for example brands can utilize calls-to-
action to direct users to purchases. This enables mass data collection on user behavior, providing
greater visibility over return-on-investment and richer analytical insights to drive improvements.
Tradition Embracing Digital Transformation | Media & Entertainment 4
Inflo Insight | Strengthen your advantage
2. Continuous improvement
Google bought YouTube in 2006 for US$1.65 billion, rather than continuing to develop their
own Google video service. YouTube is now worth over US$100 billion. The platform continues to
invest in new features and improvements, including high-definition videos, subtitles via advanced
speech detection technology, and a premium subscription service for users to avoid commercials.
TV subscription services have been constantly advancing. In the UK, 24% of homes in 2020 were
reported to subscribe to two or more TV services. YouTube’s premium subscription ranks as one
of the top five services.
YouTube Key Facts
• 300 hours of videos are • 6 out of 10 people prefer
uploaded every minute online video platforms to live TV
• 5 billion videos are • Mobile revenue is up
watched everyday 2 x year-on-year
• 30 million site visitors a day • YouTube reaches more 18-34
and 18–49-year-olds than any
• 8 out of 10 18–49-year-olds US cable network.
watch YouTube
3. What professional service firms can learn
YouTube focused on developing simple functionality to serve a broad
audience. They then developed more tailored functionality to cater for specific
01 demographics such as gaming and kids.
•A
ccounting firms can learn to serve a broad range of customers consistently,
and tailor services to target audiences, such as industry niches, where required.
YouTube developed a superior customer experience for individuals willing to pay
for their services, monetising other users in different ways.
02 •A
ccounting firms should consider how they can differentiate the level of
service they provide to customers willing to pay a premium for value beyond
compliance.
YouTube sought to build communities, connecting individuals and businesses to
generate success.
03
•A
ccounting firms should consider how they can facilitate interactions
between clients and develop relationships to create value.
Tradition Embracing Digital Transformation | Media & Entertainment 5Inflo Insight | Strengthen your advantage
Beyond LIVE
When the pandemic hit in 2020, live events were
one of the worst affected sectors. Events were
canceled overnight, with theatres and concert
venues standing empty. For many this put an
end to the events calendar, but not for South
Korean based SM Entertainment and Naver.
1. Client Need
With live in person events cancelled, SM Entertainment partnered with Naver to convert live
events to an online, globally accessible, customizable show. They combined stage performance,
advanced augmented reality (AR) technology and interactive video calls. With this new format
they were not only able to continue to operate, but to distribute their live shows to an expanded
audience.
Launching its first interactive streaming concert on 26 April 2020, BeyondLIVE has since
streamed 17 events globally to May 2021. Performances are available to over 200 countries and
territories. Their audience can expect access to live shows with subtitling in multiple languages,
complemented by on demand concerts.
By digitally transforming their concerts and embracing advances in technology, BeyondLIVE has
been able to transcend the traditional format. Geographical limitations have been removed with
valuable features added which would have been impossible in a physical format. Its first concert
achieved an estimated 75,000 live views, exceeding the capacity of the original Tokyo Dome host
venue, grossing over US$2 million.
2. Continuous improvement
The advanced technical features used in BeyondLIVE’s first concert received widespread
attention and warm approval from the press. Building on this, further interactive features and
improvements were introduced at each subsequent event.
Linking BeyondLIVE events with Naver’s VLive app, gives client’s access to celebrities in
South Korea as they streamed live videos and interacted with other subscribers. VLive now
has over 1,400 channels connecting musical acts and actors with viewers. It also broadcasts
performances; reality shows and award ceremonies. The VLive brand has also branched out in to
merchandising digital items to its client base, offering rewards for interaction.
BeyondLIVE remains in its infancy and while live events return, BeyondLIVE continues to offer a
global audience the chance to interact with artists in unique ways
BeyondLIVE Concert Experience Clip
Tradition Embracing Digital Transformation | Media & Entertainment 6Inflo Insight | Strengthen your advantage
BeyondLIVE Key Facts
• 200 Countries have access to BeyondLIVE events
• With 109 countries able to communicate live during the concert
• First Concert sold over 75,000 virtual tickets sold
• 17 Concerts held from April 2020 to May 2021
ighest recorded Real Time Live attendance 35,800,000 for a free global
•H
concert event on 1 Jan 2021
3. What professional service firms can learn
BeyondLIVE converted traditional services to digital removing geographical
boundaries for the audience and clients.
01
•A
ccounting firms should consider the ability to target clients beyond usual
markets or geographical location.
Platforms and technology provide greater scalability and can remove traditional
capacity constraints.
02
•A
ccounting firms should aspire towards digital services with high automation
levels that are not limited by staff numbers.
Consumers and companies value access to individuals and experts and are willing
to pay for this even in a one-to-many setting.
03
•A
ccounting firms should look to enrich core services with access to specific
individuals with profile or expertise.
Tradition Embracing Digital Transformation | Media & Entertainment 7Inflo Insight | Strengthen your advantage Conclusion The nature of the entertainment industry requires constant evolution to exceed consumer expectations in line with current with market trends. In accounting there may not be the same pace of change and need for creativity, but there are lessons that can be learned and adapted to improve working practices. There is an opportunity for accounting services to become leaner with core services, focusing on areas that add value and making their practice more resilient. The adoption of supporting platforms, greater use of data, and the implementation of digital methodologies will improve services and the customer journey. The ability to work with agility and continuously advance is essential. Tailoring services to demand increases their relevance and value, fuelling growth and controlling customer expectations. Society is now dependent on digital platforms, flexible working and virtual communication. Accounting firms can learn from the media and entertainment industry by moving traditional services to digital platforms and utilizing data to provide more relevant and valuable services to their clients. Tradition Embracing Digital Transformation | Media & Entertainment 8
Inflo Insight | Strengthen your advantage References YouTube Hootsuite (2021), Digital 2021 Global Overview Report, accessed July 2021. https://hootsuite.widen.net/s/zcdrtxwczn/digital2021_globalreport_en YouTube (2021), January 2021 Community Letter, Our 2021 Priorities (Video), accessed August 2021. https://www.youtube.com/watch?v=8VHLnO2u9e0 Incomelords (2021), 37 Mind Blowing YouTube Facts, Figures and Statistics, accessed September 2021. https://incomelords.com/youtube-statistics/ Finder (2021), TV streaming statistics in the UK 2020, accesses September 2021. https://www.finder.com/uk/tv-streaming-statistics BrandonGaille (2016), 39 Astounding Youtube Demographics, accessed September 2021. https://brandongaille.com/39-astounding-youtube-demographics/ Influencer Marketing Hub (2021), Youtube Influencer Marketing Report: 2020 Year In Review, accessed September 2021. https://influencermarketinghub.com/youtube-influencer-marketing-report/ Business Insider (2020), How the Video-Sharing Website Became so Popular, accessed September 2021. https://www.businessinsider.com/history-of-youtube-in-photos-2015-10 BeyondLIVE Youtube (2021), Beyond LIVE : A new era of live concert begins #3 (Video), accessed September 2021. https://www.youtube.com/watch?v=3H_MiOghwJw Wikipedia (2021), V Live, accessed September 2021. https://en.wikipedia.org/wiki/V_Live Beyond LIVE (2021), website, accessed September 2021. https://beyondlive.smtown.com/en/index.html Naver (2021), website, accessed September 2021. https://www.naver.com/ Tradition Embracing Digital Transformation | Media & Entertainment 9
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