Today’s empowered consumer is in a “golden age”, with unprecedented choice of content, often accessible for “free”. But the industry cannot survive if content cannot be monetised. Last year, we cited quality, convenience and experience as three key factors in encouraging consumers to pay. We are now adding two more: “participation”, by enabling people to actively shape their content; and “privilege”, such as special offers and earlier access.

To monetise content engagement, newspapers are implementing online paywalls, and movie studios are trying out new ways of "windowing" releases. Various models are also being tried for how people pay, including freemium, micropayments, and selling bundled multi-platform access. There is also a shift towards selling streamed content on a “rented” basis. The key is to collaborate flexibly and mould the payment model around what the consumer wants.

As content providers apply creative thinking and innovation to drive digital revenues from consumers, so advertisers and agencies have become increasingly sophisticated in seizing the new opportunities brought by digital. To do this, they are collaborating, experimenting and innovating with E&M companies and other participants to embed and target their brands.

A key focus is using mobility and social networking to reach consumers directly, turning social media into social intelligence. Filmed entertainment companies are experimenting with paid-for streaming on social networks, and TV and social networking are increasingly being integrated as a single offering and experience. Meanwhile advertisers are looking to the next stage, harnessing location-based marketing and addressable advertising to target consumers.

The dynamics outlined above are taking E&M companies towards a new operating model—the Collaborative Digital Enterprise, or CDE—designed for an environment of constant digitally driven disruption and opportunity. Migrating to the CDE model will enable companies to collaborate continuously along their entire value chain, while keeping costs down.

To do this, E&M companies will need to master data mining and “future-proof” their content against changing platforms. These capabilities will require the right balance of creative and digital skills, a robust end-to-end digital workflow, and an ability to manage ongoing regulatory challenges.

In 2011 we are seeing collaboration emerge in virtually every E&M industry relationship—including with consumers, advertisers, and platforms. The Collaborative Digital Enterprise will escalate and elevate this collaboration into a sustainable and interconnected collaborative digital ecosystem. By 2015, most E&M companies will have digital collaboration infused into their DNA.