Technology is changing the media and entertainment industry, a survey by Ernst and Young has pointed out. The survey — Fast Forward: Technology Propels Media & Entertainment CEOs into the Future — has said that technology-savvy managers are critical to their companies’ success. Digitisation of content and increasing adoption of broadband distribution technologies are among the factors creating major shifts in the industry. Cable/satellite networks and content providers are seen as the biggest winners in the years ahead.
“The report acts as a harbinger for the Indian media and entertainment industry, and will help set the right pace of technological development in this changing global scenario,” Ernst & Young (India) media and practice leader Farokh Balsara said.
“With the right management team in place and by developing the right talent pool, we will see a lot of Indian media companies competing in the global arena,” he said.
Among the key findings of the survey is that television broadcasting remains one of the most profitable segments of the media and entertainment industry. But, executives, who were contacted for the survey, perceive TV broadcasting as the most challenged to thrive and grow in future. Interestingly, cable TV networks, which have not performed too well in the European market, are likely to do better than other industry segments in the future, the study indicated. The music industry, the survey indicates, has the lowest profitability margins among the various segments.
Another finding is that around 75% of executives participating in the study cited digital video recorders (DVRs) as an innovation which could disrupt the industry’s status quo.