What do media and entertainment executives see as the biggest threat to their business? User-generated content is an issue that is the most challenging according to a new survey from Accenture, a management consulting technology firm.
The survey looked at the growth strategies of companies in advertising, film, music, publishing, radio, the Internet, videogames and television.
User-generated content was named by 57 percent of respondents as one of the top three issues they face today. More that 70 percent believed that social media would continue to grow, while only 3 percent said they viewed 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.”
Despite the challenges of social media and user-generated content, 68 percent believe that within three years their businesses will see revenue from user-generated content. Sixty-two percent said their companies would make money advertising and sponsoring social media.
Other areas of revenue mentioned were subscriptions (21 percent), and pay-per-play offerings (18 percent). Twenty-four percent said they did not know how they would profit from user-generated content.
Leslie Moonves, chief executive of CBS believes that consumers will have more choices in the future. He said,” Technology will continue to alter the distribution landscape, allowing people to access content on their own schedule, wherever they are, in all kinds of ways.”
“Current technologically driven distribution channels will expand and new ones will open. But without compelling content, every new platform is an empty shell. Companies that can combine world-class content with powerful national and local distribution will have the competitive advantage.”
