1. Introduction

The advent of digital world has inevitably changed the traditional media business and its evolution. In this paper, we are going to examine the digital transformation of the traditional media by studying the obstacles confronted by the traditional media, the methods to adopt such transformation, and the opportunities and risks in the emerging market. The basic concern is what the traditional media could do so as to continue their lives in a world of digital media and the upadation consumer habits.The paper aims to review papers in the area and present an overview of the trends and suggests traditional media how to thrive in the digital arena as they will also be there in a digitally transformed world.

2. Challenges faced by traditional media

2.1. Audience and revenue loss

In the past, cinemas and TV broadcast are used to be the main carriers of content distribution. But digital transformation decreases the users of the traditional media. As stated in the “The MEDIA Report: Media & Entertainment Data In America 2015 to 2020”, the traditional media industry with newspaper, magazine and TV have decreased consistently in viewers and readers. The number of viewers decreases the majority and switches over online streaming services and social media [1]. Platforms such as Tiktok that grew through AI personalization have clearly enhanced this tendency, since consumers’ attention is strongly tempted by contents that they find highly personalised and engaging [2]. Furthermore, the Covid-19 epidemic seems to have accelerated the transition to digital consumption of content in which safety to amusement is attained at home [3].

Moreover, the social media’s revolution has magnified the burden on traditional media. Social media is not only interactive and reactive medium but also users can consume the data directly and immediately. It has changed the consumer habits and they prefer the direct and personal access of social media over traditional media’s passive single direction communication. According to Marwan Al-Quran [2022]. Social networks provide selective distribution and bidirection conversation for the audience and users who can express their opinion and interact with the original content producer. Both of them play a fundamental role for driving online audiences and maintaining engagement with the users because of the more sophisticated use and popularity of AI-based content recommendation and customized version, which make it more harder for the mainstream media to survive [4].

2.2. Challenges to business models

As a result, advertising revenue has plummeted and has put a deadly impact on traditional media. The advertisers have opted out their money moving to digital media in which their ads are measurable and target oriented. This revenue hit from the advertising sector has sent traditional media organisations into a deathtrap with the result of old models that operated for generations since the last century is no longer of the same use [5]. Traditional media companies find that it’s time to reshape themselves by embracing new business models and seeking other revenue sources. Subscription-based revenue sources that used to sustain the traditional media are in threat mode.Streaming services have reduced barriers to accessing a large amount of content, forgoing typical cable and satellite packages. This “cord-cutting”has disrupted established media companies, which have increasingly shifted to subscription-based fee structures.AI-powered personalization through streaming platforms has only aggravated the situation, since they can deliver content experiences that are much more personalized than what could be achieved by traditional media [6].

3. Strategies of traditional media

3.1. Digital transformation and new channel exploration

As the traditional media companies pursue a heavy digital transformation journey with aim to cope with the challenges in digitalization, they are seeking out the possibility for new distribution channels, employing the digital technology to meet their audience’s needs in viewing experience. Traditional media companies like Disney, Warner Bros. are great examples for a successful undertaking of digital transformation [7]. Disney’s purchase of the media company 21st Century Fox, as well as the advent of its streamming service, Disney+ were further stages in the company’s digital transformation project. Disney’s investment into original content, building up on their already massive content repository has been a success in drawing a massive subscriber base and competes well against the others within the industry.Disney’s approach is not simply to get access to its content through digital media but also improve that experience with added functionality and recommendations.

Warner Bros. has also heavily invested in the digital platform for creating contents and delivering it through streaming to HBO Max (an HBO service). HBO Max’s offerings span from multiple original content, as well as hits including existing HBO series and films, along with a plethora of old hits for the audience’s traditional enjoyment. Warner Bros. has built its presence in the digital world thanks to their established strong brand and quality in contents.

3.2. Collaboration with streaming platforms

Work with streaming services is a major tactic that media companies take to work with well established streaming services in order to promote their exclusivity to the users. A typical option for traditional media companies is to license content to streaming services such as Netflix, Amazon Prime Video and Hulu.With this approach, media giants will be able to reach additional audiences that use streaming platforms to benefit from their promotional and distribution capabilities.

Third, co-producing content with streaming platforms. Traditional media companies collaborate with streaming platforms in order to develop original content that will reach both traditional and digital media audiences. Content collaborations combining traditional media houses’ creative resource capabilities and streaming platforms’ reach enhance the appeal of such content to a wide audience.

3.3. The role of technology in enhancing the viewer experience

Traditional media benefits from technology to improve the viewing experience. New digital technologies allow traditional media companies to provide personalized, interactive, and immersive media content [6]. VR and AR technologies allow new immersive viewing experience, and AI and machine learning provide personalized content recommendations, so viewers can always have interesting content to watch. Not only is the convergence of technology and traditional media aimed at creating a better way to view media, but it now provides storytellers new avenues of expression and possibilities for immersion. Finally, as smart speakers and voice assistants become more prevalent, stories can become even more easily consumed by way of one’s voice.

3.4. The importance of content localization

The content localization is increasing with the development of global media. The conventional media players must localize the content to address the cultural consumption and language demand of different regions. Just translation is not sufficient, the story and characters will be adapted to fit with the local requirements.For instance Disney, Disney has localized its contents for various regions, so that its films and TV series would attract global audience yet keeping its core brand. Content localization is the essential requirement for the traditional media companies to broaden its market in the global space.

4. Opportunities and challenges in emerging markets

4.1. Growth potential in emerging markets

Emerging markets – such as China – can be very promising for traditional media [8]. In these markets, a fast evolving infrastructure of digital communications has gone hand in hand with an upswing of mobile device use. With a rapidly expanding media and entertainment market, fueled by an increasing spending power of its middle classes, China’s economy can serve as a tremendous growth market for both traditional as well as digital media businesses.Traditional media companies are able to make a move into this emerging market by localizing the contents of their products and changing their mode of distribution according to the needs of China’s consumers [9]. The Chinese government is helping promote the media and entertainment industry with a supportive environment for traditional media companies in this country [6].

4.2. Cultural differences and market competition

Yet, traditional media companies also encounter great challenges on emerging markets. The cultural disparities hamper the successful localization of content. Traditional media companies must grasp the cultural differences and local tastes of their audience to produce content the audience can get a taste of. In addition to this, the competitive environment in the emerging markets is extremely fierce with local players and international companies competing with each other for the available market share.Traditional media must consider the solutions. It is through investing in creation of local content, forging partnership with local media players, and turning into a nimble business model for adjusting into the local market scenarios in the emerging countries that they are able to successfully navigate the differences in culture and prevail in these markets.

5. Conclusion

Digital Transformation of Traditional Media is not a static process that begins and ends; it is a journey. Despite the aforementioned challenges traditional media faces regarding audience and revenue loss, there still lies opportunities to operate and continue to innovate the digital era by adopting digital technologies, by finding new avenues as well as developing partnerships with streaming entities.Further, through content localization and investigating the developing market, traditional media can develop its overseas markets and gain closer relation with audiences. With the quick development of digital technologies and users’ behavior, the media industry has changed comprehensively, and traditional media organizations need to be quick and innovative enough to ensure its survival and development.Digital technologies and exploration of new business model must become a matter of life and death for the survival in the digital world. Digital traditional media can learn from success stories and utilize the possibilities of new markets to not just survive but to grow as a player in the digital market place.