The Relevance of Emerging Technologies for Media Conglomerates. A Question of the Planning Horizon of Technology Investment Activities

ABSTRACT Technological innovations have always shaped the development of media innovations. Emerging technologies enable the further development of media business models as they provide companies with potential competitive advantages. Hence, we anticipate that the adoption of emerging technologies in the media industry is both likely and implemented with foresight. This study examines the external strategic technology adoption behavior of media conglomerates by creating planning horizon profiles and technology investment profiles. Based on a detailed review of the literature on strategic planning, first, we discuss the situational factors that influence the planning horizon of media companies. Second, we evaluate in which emerging technologies and with which planning horizon media conglomerates strategically invest and third, we analyze the composition of the situational factors that characterize the specific technology investment profiles. By using the technology investment profiles, it is possible to take a closer look at the situational factors of investors and acquirers. Looking at all investment activities from 2000 to 2019, technology-related investment activities of the 100 largest media conglomerates are comparatively frequent. Media conglomerates have a high degree of technological diversity: The investments are diverse and relate to 36 out of 39 analyzed emerging technologies. As for the planning horizon, media conglomerates – both technology-driven media conglomerates and legacy media – invest particularly far into the future. Acquisitions are only made when success is in sight. The focus on mid- and long-term planning horizons and the proportion of acquisition and investment suggest that these are part of the diversification strategy of media conglomerates. Due to the composition of its profile, Biotechnology stands out in comparison to all other technologies: it can be assumed that these are new-generation media conglomerates investing in Biotechnology.