Technology, Media, and Telecom: Market Consolidation

Intro

This sector has been among the least affected by the epidemic and has performed significantly better than the S&P 500. However, within the industry, the impact of the crisis has varied widely. Predictably, the divide has fallen between offline and online operations. In the market-sensitive advertising sector, budget cuts have led to a shift towards digital channels.

Branding in Media

In the media sector, all offline-dependent links in the production chain have suffered. The suspension of sports events accelerated the shift from television to streaming, and the pause in film production gave a competitive edge to online cinemas with extensive content libraries. As a result, new brands have emerged in this industry.

Rebranding of Internet Services

While internet services and infrastructure were the main beneficiaries of the situation, FAANG stocks (Facebook, Amazon, Apple, Netflix, Google) barely felt its negative impact—their value decreased by only 3%. During this period, interest in metaverses surged, leading Facebook to rebrand itself as Meta.

Developing New Brands Amid M&A

For several years, the trend towards convergence, uniting content production, delivery, and promotion, has been driving the industry. The pandemic-induced situation, where some companies lost significantly more value than others, is likely to fuel an increase in mergers and acquisitions, with intellectual property and brands likely at the center. M&A deals have also led to the creation of new brands in this sector.

Electric Brand Consultants has extensive experience in creating designs for IT companies. You can order a logo and corporate identity by contacting our specialists.