On April 19, 2022, Business Insider reported that for the first time in over a decade, Netflix had lost 200,000 subscribers and was expected to lose 2 million more in the coming months. On Feb. 7, CNBC reported that “The Matrix Resurrections” co-producer filed a lawsuit against Warner Bros for alleged breach of contract. That same month, People reported that US Olympic and NBC figure skaters were being sued for copyright infringement for using a song in their Olympic routine.
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These are just a few of the many data governance cases gone wrong in entertainment. And the same principles apply to any business in the industry. Without a doubt, the entertainment industry is one of the most affected by digital transformation. Shifting to on-demand entertainment, streaming services, cross-platform products, and moving away from traditional channels, the industry has reinvented itself and found itself living in a data-driven world. However, data governance is still a relatively new concept in the industry.
Why entertainment companies should use a data governance framework
Why should entertainment companies embrace data governance? The answer is simple, but the implications are significant. Data governance ensures high levels of data security and stewardship, sets standards for handling customer data, complies with regulations and laws, streamlines operations, maximizes efficiency, and helps businesses cope with adequately to the current cybersecurity crisis.
Data and data governance are the essence of the new business models the entertainment industry has built on its journey of transformation. Microsoft explains, “Whether it’s delivering new insights, improving decision-making, or driving better business results, the excitement to unleash the power of data has never been greater. For the media industry, nothing more precise.
Today’s media and entertainment companies are smart, data-driven platforms. Producing streaming content to any device with automation, creating a highly personalized customer experience with data-powered AI, and improving productivity with collaborating workers from different parts of the world – data is integrated into its daily operations.
As they roll out new ways to monetize experiences and try to understand consumer behaviors, the risks of poor data governance are too great. Entertainment companies need to ensure that their data is valued as a strategic asset and that it is secure, reliable, high quality, compliant and fit for purpose.
The Benefits of Using Data Governance in an Entertainment Company
Accurity lists the benefits of compliance, monetization and management as key drivers for data governance programs in the entertainment industry. The company explains that industry efforts in data governance, data creation, storage and processing need to be improved for the industry to reach its full potential.
Accurity explains that the content was previously bound by national or regional licenses and regulations. Companies like Disney+, Star+, HBO Max, and even startups are now international, delivering content directly to users and simultaneously facing new challenges. From legal requirements to protecting user data, how these companies manage and secure data is fundamental.
Additionally, senior executives and managers are faced with an ocean of new internal and external data, which they must sift through to make effective day-to-day operational decisions. Maintaining, cleaning and engineering data to serve internal purposes is essential. Entertainment companies are also using data governance for external purposes, such as better understanding customers in a new media environment.
Companies are more specifically using AI to understand customer behaviors and interests. This complex approach to user analytics poses many challenges, and the mining of user data is regulated by international, federal, and state laws.
To tap into this rich but challenging environment, entertainment companies need to trust their data, rely on their reports, and understand context and metrics. In this sense, data governance is the key to the kingdom. Good data governance ultimately increases performance, revenue, and audiences.
How you can decide if data governance is right for your organization
Whether your entertainment business is small, medium, or large, established and traditional, or an innovative startup, it should consider implementing some form of data governance program or strategy. DataVersity explains that good data governance depends on your organization’s culture and business goals.
When organizations adopt data governance frameworks that don’t fit their culture, they tend to fail. The main resource of data governance is people. The right people will build the process and brief executives on the technology and tools needed for the job. This is why culture matters: data governance works across the organization when it works through its people.
But data governance approaches still depend on business objectives. Say your business aims to increase content delivery, expand viewership, enter new regions, or better manage human resources, budgets, or production. In these cases, data governance programs should be developed to drive and support these goals.
Regarding compliance, if your company works with data, it is required by law to meet its standards. But a good data governance program can help your organization achieve full compliance with ease, simplicity, and automation.
“Data governance simply becomes part of how you do things in your business,” said Mary Levins, founder of Sierra Creek Consulting, at the DataVersity Enterprise Data World conference.
Today, brands and reputations, sales and business performance rely on data governance. Data governance, ultimately, represents a company’s values and mission, especially in complex industries like entertainment and new media, which are constantly generating new user data that must be both protected and optimized.