Key takeaways
Monetisation pressure
AI deployment
Supply chain complexity
Workforce readiness
Workforce
Key challenges in the media industry
The media industry is undergoing a broad shift as digital monetisation, AI adoption, technology modernization, workforce transformation, and increasingly complex content supply chains reshape operating models. Sustaining growth will depend on improving the profitability of digital channels while building the infrastructure, skills, and automation capabilities needed to scale new media models.
Uneven digital monetisation
Advertising weakness is weighing on media profitability as companies transition toward digital and streaming models, with Warner Bros. Discovery’s advertising revenue falling 22% in Q2 2026 despite 10% streaming revenue growth, while Zee Entertainment’s advertising revenue declined 11.5% and quarterly net profit fell 46.9%. Digital growth is also failing to translate consistently into stronger earnings, as MediaCo’s YTD revenue increased 10% but adjusted EBITDA declined from $2.9 million to $1.1 million, while iHeartMedia’s digital audio and podcast revenues grew 12% and 21% respectively as segment EBITDA fell 39%.
Scaling AI into media operations
Large-scale AI deployment is accelerating the transformation of media workflows, data infrastructure, and operating models, with media and entertainment firms projected to allocate 9% of revenue to digital transformation between 2026 and 2032 and 19% of that spending directed to AI. The shift is moving beyond experimentation, as Reuters has made its journalism and multimedia archive dating back to 1987 available in five languages for AI integration, while Higgsfield reached $700 million in annualized revenue and expanded to more than 30 million users across 238 countries.
Modernizing the media technology stack
Rapid advances in AI, cloud infrastructure, and digital platforms are increasing pressure to modernize the technology foundations supporting media operations, with the global broadcast and media technology market projected to grow from $58.2 billion in 2025 to $131.65 billion by 2035. AI infrastructure is also scaling rapidly, with AI-optimized IaaS spending forecast to reach $42.3 billion in 2026, up 96.4%, including $23.3 billion in inference spending compared with $19 billion for training. These trends are increasing the need for integrated infrastructure that connects data, AI capabilities, and operational systems.
Preparing creative talent for AI
Workforce requirements are shifting rapidly as AI and digital technologies reshape roles and skills, with UK creative-industry employment projected to grow 27% by 2035 and require around 909,000 workers, including 493,000 replacements. With 95% of CHROs reporting active AI initiatives and 51% of CIOs saying required skills are evolving faster than available talent, reskilling and role redesign are becoming critical to maintaining workforce capacity as AI becomes embedded across media workflows.
Streamlining complex content supply chains
Growing numbers of channels, platforms, and distribution workflows are increasing supply-chain complexity, with Play Media operating 5 channels plus an OTT platform after consolidating 4 separate systems into 1 cloud platform. The new setup automates content cataloguing from more than 100 providers and cuts OTT publishing time from around 45 minutes to 10–15 minutes, while petabyte-scale media libraries and search environments handling billions of records are increasing the need for automation, orchestration, and interoperability.
Next steps
Media companies should prioritize profitable digital monetisation while directing investment toward integrated AI, cloud, and data infrastructure that can support scalable content production and distribution. Reskilling programs, workflow automation, and interoperable supply-chain platforms will be critical to improving operational efficiency and converting technology investment into sustainable growth.
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Enliven Systems helps organizations connect fragmented platforms, strengthen data capabilities, and deploy AI and automation across increasingly complex media operations.
