The Impact Of Digital Transformation Of Media Enterprises On Corporate Financial Performance

The digital economy and Internet technology’s growth has necessitated that many businesses alter their business models through digital transformation to meet the requirements of their customers and further their own growth,thus attaining greater financial success.Organizations of the traditional variety must augment their R&D investment,acquire nascent industry firms,and refine their management structure to realize the ambition of cutting expenses and augmenting productivity during the digital revolution.The media industry has entered a new era of development,with the rapid advancement of information technology leading to a gradual shift in the manner in which people access information from traditional paper media to electronic media.Therefore,most media companies have undergone digital transformation.The industry has become intensely focused on digital transformation due to the effects of the internet and new media,and the only way to progress an enterprise is to upgrade and innovate.In this context,we believe that digital transformation will have a certain impact on the financial performance of media companies.Employing the entropy technique,12 financial metrics from a variety of dimensions were chosen to construct a financial performance assessment model in this examination of the media industry.The financial performance of 27 publicly traded companies in the media industry was then evaluated and ranked.The text analysis method is used to evaluate the degree of digital transformation of the above listed companies through two indicators,namely,the proportion of digital assets and the keywords in the annual report,Based on this,a correlation diagram between digital transformation and financial performance is drawn.This leads to the complementary relationship between digital transformation and financial performance for media companies.For the study of a case company,this article takes Phoenix Media as an example.Based on the data,it can be seen that its digital transformation strategy has been implemented since its listing in 2011,and its digital transformation can be divided into three stages.For a period of 11 years,Phoenix Media’s financial performance can be studied in stages by selecting four-dimensional financial indicators from each digital transformation stage.Subsequently,the EVA analysis method can be employed to gain a comprehensive understanding of its financial performance.The research results show that digital transformation can promote the long-term economic benefits of media companies,but its benefits have not significantly improved in the short term.However,with the continuous expansion of asset size,income has continued to grow steadily,and the overall yield is stable.In addition,due to the particularity of the media industry and its own characteristics,many factors need to be considered in the transformation process,such as technical,management,and other issues.Phoenix Media’s long-term growth,both before and after the alteration,will be further advanced by the cost of sales channels being gradually reduced in today’s more advanced network channels,thus augmenting the company’s future growth potential.It is proposed that the media industry should foster digital transformation and upgrade of enterprises through the strengthening of internal management and the optimization of resource allocation,with the ultimate aim of fostering sustainable and healthy development of enterprises.The academic research on the digital transformation of the media industry is enriched by this paper,which has great relevance to the digital transformation of media enterprises and aids them in devising more effective transformation strategies.