The Media Industry outlines the channels and the media outlets to deliver the information to the mass public. The mass media industry comprises of various media channels like advertising, digital media, TV, broadcasting, cinema, photography, news media, print media, and others. Today, we’ll discuss the PESTLE analysis of Media Industry; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Media Industry
Some of the main political factors in the Media Industry PESTLE analysis are as follows;
I-Government Regulations
The government regulations are very strict and tight for the media channels and media companies. They focus on earning media licenses from the state, annual license renewal fees, information sharing policies, information sourcing and gathering ethics, a network of reporters, and others. However, the goal and objective of media regulation is to avoid spreading false rumors that would cause mass hysteria among the general public.
II-Censorship Policy
Some authoritarian regimes and countries have a very strict censorship policy. They have a controlled media policy and they don’t want the free spread of information to the ordinary general public. In fact, they have strict censorship laws and they evaluate and monitor every type of information that deals with mass media. Therefore, media channels should be familiar with the censorship laws of different countries.
III-Freedom of Speech
The definition of freedom of speech is different for different countries. For instance, some countries don’t want freedom of speech about their military, religion, culture, or any other areas. The media channels should be familiar with the freedom of speech regulations, norms, and limits of different countries.
Economic Factors Affecting Media Industry
Some of the main economic factors in the Media Industry PESTLE analysis are as follows;
I-Economic Growth
The economic growth of the country plays a key role in the growth and development of businesses and companies including media channels. People would watch media channels, news, and videos when they’re free and mentally relaxed. It becomes only possible when people have a stable source of income, employment, and sufficient disposable income to pay off all of their expenses.
II-Ads Services
Advertisement and ad services are the main sources of income and revenue for the media channels and media industry. In order to comply with the ad policies of the publishing companies, Media Channels should make sure to have the right video content for customers. Having the right video content relevant to the requirements of the ads and publishing companies would ensure the revenue, income, and profitability of the company.
III-Economic Indicators
Inflation and interest rates are the key economic indicators. When the government increases the inflation rate, it means they’re printing more money than the required level, then it reduces the value of all the currency notes. However, when the inflation rate increases, then it negatively impacts all businesses and companies.
Social Factors Impacting Media Industry
Some of the main social factors in the Media Industry PESTEL analysis are as follows;
I-Sense of Connection
As they say, human beings are social animals. They want to live in the community and develop a sense of connection with others. However, it further amplifies the growth and significance of Media Channels even more. It allows them to become aware of their surrounding environment, and learn about people, systems, culture, and lifestyle.
II-Consumer Needs and Preferences
When it comes to watching TV shows and video content for information and entertainment, they have variant needs and preferences. The Media Channels should conduct thorough market research to comprehend the needs and preferences of the customers. It allows them to know the needs and demands of the customer market so that they can develop and play the relevant content.
III-Demographic Shift
Millennials and Generation Z comprise the major portion of the customer market. The needs, demands, and interests of the viewers market also change with the shifting demographics. Media Channels should pay close heed to the changing market demographic and customer market trends. It allows them to develop and alter their content strategy relevant to the customer market demographic.
Technological Factors Affecting Media Industry
Some of the main technological factors in the Media Industry PESTEL analysis are as follows;
I-Research and Development
Consumer electronics companies are investing a significant amount of capital resources in research and technological development. It allows them to develop the latest tech advanced tools, equipment, and devices for entertainment. However, the objective of every latest model is to improve the overall user experience for customers.
II-Digital Media Platforms
The growth of digital and social media platforms has been increasing for the past few years. It presents a lot of growth opportunities to the Media Channels; they need to launch their pages and groups on various social media platforms. However, the objective is to connect with the targeted customer market and let them know about the latest content.
Legal Factors Impacting Media Industry
Some of the main legal factors in the Media Industry PESTEL analysis are as follows;
Regulatory Compliance
Media Channels should comply with the regulations and policies of different countries. They comprise censorship policies, media channel licensing fees and agreements, reporting protocols, and other legal and regulatory requirements. Regulatory compliance would help the company to smoothly perform its operations and offer streaming services in various countries without any delays and disruption.
Environmental Factors Affecting Media Industry
Some of the main environmental factors in the Media Industry PESTEL analysis are as follows;
Environmental Sustainability Initiative
Media Channels should make a strong commitment to the environmental sustainability initiative. It comprises investing in renewable sources of energy, recycling electronic waste, and others to reduce the carbon emission rate. Environmental sustainability initiatives would help the company to keep up with the growth of eco-friendly trends.
Conclusion: Media Industry PESTLE Analysis |PESTEL Analysis of Media Industry |External Environmental Analysis of Media Industry | Strategic Analysis of Media Industry
After an in-depth study of the pestle analysis of Media Industry; we have realized that Media Channels and media industry have a significant growth potential. If you are learning about the Media Industry PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
