New Content Delivery Positioned For Growth, But Hurdles High

New Content Delivery Positioned For Growth, But Hurdles High

According to findings of the Accenture 2008 Global Media Content Survey among more than 100 senior leaders and decision-makers in the media and entertainment industry, 70% of respondents indicated they derive some revenue today from new alternate forms of media such as downloading or watching TV programs "on demand," digital advertising, or user-generated content.

Based on the participating companies, the small percentage of revenue (less than 10 percent) actually represents tremendous growth, and substantial revenue streams are being derived today from these new forms of media. In fact, according to Accenture:

  • 82% of respondents feel that the development of content is increasing for consumption across multi-platform distribution
  • 61% say content companies are shifting toward "open model" distribution
  • Only 7% think that peer-to-peer is the only viable long term technology to distribute online content

The survey revealed that there appears to be strong consensus as to what will drive future growth. Four sources of revenue growth, are predicted to be the dominant business model five years from now:

  • 66 percent of respondents cited new platforms or new ways of delivering content as the largest drivers of revenue growth, while 24 percent cited new content types, and 10 percent new geographies. 63 percent of respondents said they will pursue a "multi-screen" distribution strategy, which includes television, online and mobile delivery
  • 38 percent of respondents feel that short-form video will generate the greatest growth, with online portal/publishing second at 23 percent, and video games third among 18 percent of respondents
  • 68 percent of respondents identified social media and user-generated content as a high-growth opportunity, and 56 percent said they are already involved in social media in some capacity
  • 62 percent of respondents believe advertising-supported business models will be the number one business model in five years, compared with 25 percent who cited subscription-based services, and 11 percent who cited pay-per-play services

Gavin Mann, digital media lead for Accenture's Media & Entertainment practice, says "It is great news that media organizations are developing a consistent strategic view of the key growth areas... (but) there clearly remains a huge effort to put in place the necessary capabilities... it is apparent that the size of the task is still not fully understood." 

The study concludes that there are several barriers to the mobile market. 51 percent of the executives surveyed feel that consumer readiness continues to be a barrier to the mass uptake of the mobile market. 42 percent of respondents think companies' inability to provide a consistent user experience is a significant barrier, while 37% say that a lack of readiness among both content owners and mobile operators/networks presents a barrier to success.

More information on Accenture's Global Media Content Survey and the Study in PDF format can be found here.




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