Seventy percent of media and entertainment companies now derive some revenue from alternative channels like on-demand content, digital advertising and user-generated content, according to management consulting firm Accenture's annual Global Media Content Survey. Even though the advertising, film, music, publishing, radio, web, videogame and television execs surveyed indicate their new media revenues yield less than 10 percent of overall revenues, Accenture notes even that small percentage signifies tremendous growth over last year's survey.
When asked to identify the largest drivers of revenue growth over the next five years, 66 percent of respondents cited multi-platform content delivery, far ahead of new content types (24 percent) or new geographies (10 percent). Sixty-three percent of respondents said they will pursue a multi-screen distribution strategy embracing television, online and mobile delivery. Short-form video was cited by 38 percent of respondents as the format generating the greatest growth, followed by online portal/publishing (23 percent) and videogames (18 percent). Sixty-eight percent of respondents identified social media and UGC as major growth opportunities, and 56 percent indicated they are already involved in social media in some capacity. Nearly two-thirds of respondents favor ad-supported business models, with 25 percent pointing to subscription-based services and 11 percent citing pay-per-play services.
The Accenture survey found that 55 percent of respondents believe mobile requires three years to emerge as a true mass-market medium, while the remaining 45 percent feel that evolution will require even more time. Consumer readiness remains the most oft-mentioned barrier to mass mobile uptake, according to 51 percent of respondents--42 percent cited the failure of a consistent user experience, while readiness questions surround both mobile operators and content providers according to 37 percent of respondents.
For more on the Accenture survey:
- read this release [1]
Related article:
When will the tide turn for mobile content [2]?
Links:
[1] http://www.fiercewireless.com/press-releases/accenture-survey-finds-broad-agreement-within-media-and-entertainment-industry-direct
[2] http://www.fiercewireless.com/ctialive/story/when-will-the-tide-turn-for-mobile-content/2008-02-19