To start a new section, hold down the apple+shift keys and click to release this object and type the section title in the box below. The bottom line While our research suggests that investing in content may enhance profitability for a distributor, clearly content creation is not without its risks. At their essence content creators are highly innovative businesses, needing to capture new audiences through investment in new creative concepts which may have no guarantee of success. Distributors may feel that they already have capabilities in identifying valuable content and negotiating rights and royalties but that forays into content investment should be managed carefully given the likely expectation of shareholders for stable profits based on predictable CAPEX investments. In a crowded and increasingly fragmented media and entertainment market, many content creators (particularly those which are not among the largest in their sector) have focused on achieving a wider audience for content creators by distributing through multiple channels. Developing a primary distribution channel can be an attractive option to connect with a loyal paying customer base. But companies should recognise that customers are often only willing to engage in direct paying relationships with the largest and most trusted content brands. Media Metrics The state of UK media and entertainment 29