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| Top-line and cash-flow growth remain the imperative for media & entertainment CEOs. McKinsey works with senior management at leading companies to chart strategies for revenue enhancements in everything from joint ventures and acquisitions to pricing structures to reengineering sales forces and product launches. |
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Strategy Review
A mid-sized diversified U.S. media company owning several TV stations, cable channels, and newspapers engaged us to review parent company strategy by assessing the threats, opportunities, and growth potential of existing businesses and by identifying the corporate organizational model for the future. As a result the client shifted its performance expectations and capital allocation across the portfolio businesses and committed itself to acquisitions that leveraged the existing business infrastructure.
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Turnaround at an Underperforming Network
McKinsey helped an ailing international public TV and radio broadcaster to lead a financial turnaround by addressing short-term measures in both cost reduction and revenue generation. An impact of $40 million to $50 million in annual improvements was achieved through increased subscription fees, reduced support cost, and increased utilization of production facilities.
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Motion picture strategy
We worked with a leading entertainment company to develop a long-term strategic plan for the motion picture business. A principal focus of the plan was setting the 5-year film portfolio, film budgets, and overall investment level. To determine the appropriate mix, McKinsey consultants worked with the client to analyze market trends and recent film performance by genre and budget level – including all ultimate revenue streams and expense categories. In addition, the plan addressed other key aspects of the business, including domestic and international marketing/distribution, home video, and consumer products licensing. This work resulted in major shifts in the studio's film portfolio designed to increase return on investment. These shifts included targeting specific genres of films, adjusting planned film budgets to reflect risk levels and expected revenues, and increasing use of outside financing.
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