The TV industry is experiencing great change as the shift to a digital world continues, but around the globe, media and entertainment executives believe there are more opportunities than challenges, according to a survey by consultant Accenture.
Accenture interviewed 130 top executives in media and entertainment (40% of them in the U.S. and 30% in broadcasting) and 51% of the broadcasters thought opportunities outweighed challenges, while 26% thought challenges were greater.
Significant change is coming to the industry, according to 64% of those surveyed, but it will not happen overnight. At most companies in the industry, digital accounts for less than 10% of revenue, with just 14% saying digital represents more than 25% of revenue. In two years 35% of them expect digital to account for more than 25%.
A huge proportion of senior executives-91%–told Accenture that that they are not taking full advantage of customer data that can deliver customized content, leaving them ill-prepared to seize the revenue opportunities of today’s digital technologies.
“The [key will be the] ability to reach our audience unimpeded by other people’s gateways. We want to ensure that there are no barriers to a unified content approach,” said an executive of a broadcasting company in the U.K.
Other priorities cited by the executives included mastering multiplatform digital distribution, developing innovative business models, finding efficient content planning, production and control and maximizing rights exploitation.
Broadcasters said advertising will remain the dominant business model, with 69% saying it’s prevalent now, and 67% saying it will remain so in two years. Subscription revenue is prevalent for 10% of executives now, and 13% expect it to be prevalent in two years.
“For me I feel it has got to be mobile and tablet. Monetization is key, it is about charging for something that used to be free,” said a sales operations director for a U.S. broadcasting company.