Survey: Media, Entertainment Companies Focused on Digital
Seventy percent of respondents to an Accenture survey said they derive some revenue from new alternate forms of media -- such as downloading or watching TV programs on demand, digital advertising or user-generated content.
The survey, Accenture's 2008 Global Media Content Survey, interviewed more than 100 senior executives, examining the growth strategies of companies in the advertising, film, music, publishing, radio, Internet, videogames and television industries.
The survey found, however, that the revenue derived from the alternate media most likely would be less than 10 percent. Accenture said that while less than 10 percent of revenue might seem small, it actually represents tremendous growth and indicates that substantial revenue streams are being derived today from these new forms of media.
Four of the main sources of revenue growth cited by respondents in this year's survey are the same as those identified in last year's survey, according to Accenture. The sources are multiplatform distribution; short form video; social media/user-generated content; and advertising.
Other key findings from the survey include:
- Digital advertising will drive a large portion of future revenues. Fifty-two percent of respondents said they see digital advertising surpassing traditional advertising within five years, and 62 percent said they believe that content will be supported by several digital advertising methods, including branded content, search, sponsorships, performance and a mix of all of these.
- The Web 2.0 phenomenon is here to stay. Two-thirds (66 percent) of respondents said there is no likelihood that the Web 2.0 bubble will burst during the next 24 months, and 71 percent said they do not see any risk in allowing their brands to be associated with social media.
- There is uncertainty as to when the mobile market will take off. When asked when they believe the mobile market will become a mass market, 55 percent of respondents said within three years, and 45 percent said they believe it will take longer.