Ernst & Young Study Shows Digital Revenues From Media Companies Set To Overtake Traditional Revenue By 2015
According to a new Ernst & Young survey, digital will soon be the largest source of revenue for media and entertainment companies, with 68% of companies reporting that smart mobility will drive revenue growth. Digital agility now! Creating a high-velocity media and entertainment organization in the age of transformative technology (PDF) identifies 69 companies as “digital leaders” out of more than 550 global survey respondents.
“With the media and entertainment sector transitioning to digital as its new norm, companies need to harness new technology not only to deliver digital products and services, but to better understand and connect with their customers,” says Martin Lundie, partner and Canadian media, technology and telecommunications leader at Ernst & Young. Digital leaders have advanced social listening programs, leading-edge analytics and cloud-based infrastructure that enable rapid deployment of new products and resources. So they can learn from – and fix – mistakes quickly.”
While new, transformative technologies allow media and entertainment companies to offer the personalized, anywhere, always-on content that media consumers now demand, the research finds gaps between the potential to build revenue, reanimate legacy offerings, develop new products and services, and get to market more rapidly.
“Media and entertainment companies report that creating a culture of innovation is the top strategic priority for digital transformation,” adds Lundie. “But a steady stream of brilliantly innovative ideas demands an extraordinarily agile organization to bring them to market.”
As such, media and entertainment companies are rethinking the very structure of their organizations to improve agility.
“We’re seeing these companies shift from ‘make-and-sell’ to ‘sense-and-respond’ business models,” says Lundie. “As technology enables them to get closer to their customers than ever before, they need to be nimble to respond to rapid shifts in customer demand. Only the most agile companies will be able to respond competitively.”