According to a report by Accenture, the media and entertainment industry feels user-generated content is the top threat to their businesses:
“NEW YORK; April 16, 2007 -Media and
entertainment executives see the growing ability and eagerness of
individuals to create their own content as one of the biggest threats
to their business, according to results of a survey released today by
Accenture (NYSE: ACN).
In
its annual survey of senior executives in the media and entertainment
industry, Accenture examined the growth strategies of companies across
the landscape of advertising, film, music, publishing, radio, the
Internet, videogames and television.
More
than half (57 percent) of the respondents identified the rapid growth
of user-generated content – which includes amateur digital videos,
podcasts, mobile phone photography, wikis and social-media blogs — as
one of the top three challenges they face today. In addition, more
than two-thirds (70 percent) of respondents said they believe that
social media, one of the largest segments of user-generated content,
will continue to grow, compared with only 3 percent of respondents who
said they view social media as a fad.
“This
is just the beginning for a rapidly changing landscape where the media
content environment grows more fractious and the user gains more
control and power,” said Gavin Mann, digital media lead for Accenture’s
Media & Entertainment practice. “Traditional,
established content providers will have to adapt and develop new
business and monetization models in order to keep revenue streams
flowing. The key to success will be identifying new forms of content that can complement their traditional strengths.”
The
new landscape offers opportunities as well as challenges, according to
the study, as two-thirds (68 percent) of the respondents said they
believe that within three years their businesses will be making money
on user-generated content. Sixty-two percent said they believe their
companies will make money through advertising and sponsorships of
social media. Other sources of profits cited were subscriptions (21
percent) and pay-per-play offerings (18 percent). However, a quarter
(24 percent) of respondents said they do not yet know how their
businesses will profit from user-generated content.
The
study included interviews with industry giants like Roger Faxon, chief
executive of EMI Music Publishing; Leslie Moonves, chief executive of
CBS; Doug Neil, senior vice president of digital marketing for
Universal Studios; and Sir Martin Sorrell, chief executive of WPP Group
PLC.”
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