Home >> Media-Others >> Article

CFO, the new hero of media and entertainment industry, says Ernst & Young survey

23-January-2007
Font Size   16
CFO, the new hero of media and entertainment industry, says Ernst & Young survey

Ernst & Young’s global media and entertainment survey, ‘Center Stage’, has put the spotlight on the new hero of the corporate world in the media and entertainment (M&E) industry – the Chief Financial Officer.

‘Center Stage: CFOs and Finance Executives in the Spotlight of an Industry in Transition’ was released here by John Nendick, Global Head - Media & Entertainment Practice, Ernst & Young.

Advances in mobile technologies and increasing public expectations mean that the ‘consumer is king’ in the content on demand marketplace, according to the survey of more than 200 finance executives, which includes views of 46 CFOs, six from India, and 140 online participants from major media and entertainment companies around the globe. The study shows that changing content and distribution models, as well as mobile entertainment devices, will be the key change drivers for the industry.

Nendick said, “We are delighted to release this global survey in Mumbai, which is home to one of the most vibrant and fastest-growing M&E markets in the world today. Several Indian M&E players are in the midst of rapid transition, brought on by a booming consumer base and the twin forces of convergence and competition. As companies scale up, the CFO’s role is becoming increasingly critical both in capital raising for growth and management of risks.”

The report discusses a larger role played by the finance executives in the media and entertainment industry, which includes moving beyond handling the plain vanilla finance function to assisting the CEO in strategic decision-making, including scenario analysis, customer product analysis and investment optimisation in the dynamic media and entertainment segment.

Some of the points raised include maintaining a risk-reward balance. Rapid changes in the media and entertainment industry have made it more complex and unpredictable. While this has brought many opportunities, there are risks that also have to be considered. This has placed the CFO’s function in a critical position; as the study findings point out, CFOs in the M&E space have to analyse how enterprise can derive more value from existing investments and operations.

CFOs also play a key role in mergers and acquisitions activity, starting from assessment, evaluation and integration. This also includes post-merger performance tracking of an acquired entity against original investment criteria. CFOs interviewed in the study also feel that they are prone to missing out on opportunities to reduce taxes. Seventy-six pr cent of the CFOs interviewed opined that tax planning should be a key priority for executives.

According to the study report, 86 per cent of study participants consider changing content and distribution models as having the greatest impact on the industry over the next two to three years, whereas adoption of personal entertainment and communication devices (MP3 players, mobile telephones, etc.) is considered to have the greatest impact by 79 per cent of the participants. The study notes that expanding global universe of mobile wireless subscribers ensures that the ‘anytime, anywhere’ entertainment will continue.

According to the study, finance executives of global M&E companies believe that the businesses that will emerge as winners are those that welcome the new distribution channels and are capable of identifying the right content for the specific delivery vehicle.

Needless to say, this survey too quotes that the ‘Future is Internet’. To the question of business models for media and entertainment companies most likely to thrive in future, 77 per cent of the study participants consider Internet media providers as the most likely market winners, whereas only 24 per cent view cable operators as thriving businesses in the future. New (independent or cable channel) content creation and electronic gaming have been rated as second and third business models in a best position to thrive, respectively.

Interestingly, CFOs and finance heads of global M&E companies do not consider radio broadcasting and newspapers and periodical publishing as thriving business models, with only 11 per cent favouring radio and 13 per cent favouring publishing businesses as best positioned to thrive in next two to three years. The study is a continuation of a series of studies by Ernst & Young exploring strategic issues and trends transforming the media and entertainment industry worldwide.

Tags

Varun Raina, Marketing Manager, Airbnb India speaks to exchange4media about the successful #LiveThere campaign and how Bollywood helps them connect with its young consumer

Tim Castree is all praises for his team in India and trusts it to be a result of “an excellent execution of agency’s global strategy” headed by Kartik Sharma

Siddharth Dabhade says Criteo’s technology allows brands to engage with shoppers, create relevant experience on retail apps, thereby driving sales and profits

Shantanu Gangane says OTT platform Viu plans around 20+ originals and is all set to enter the Tamil market with a mix of syndicated and original content

right
left
OFF THE CUFF HAS JOURNALIST ARUN SHOURIE IN CONVERSATION WITH SHEKHAR GUPTA IN MUMBAI IAA HOSTS FIRST INDIAA REGIONAL AWARDS (TELUGU) IN HYDERABAD BREAK THE CEILING TOUCH THE SKY 2018 SEES OVERWHELMING INDUSTRY PARTICIPATION 10TH EDITION OF ABC EUREKA AWARDS IN MUMBAI CELEBRATES WORK OF PARTNER AGENCIES EMINENT JURY PICKS LOUDEST’S 100 MOST POWERFUL INDIAN MUSIC BUSINESS LEADERS MODE LOFT BY SABGROUP LAUNCHES SIGNATURE MENSWEAR POWER DRESSING CLOTHING LINE TOP MARKETERS DISCUSS ART AND SCIENCE OF EFFECTIVE LISTENING @PITCH CMO SUMMIT 2018, DELHI THIRD SEASON OF ‘INDIA’S TOP DIGITAL PLANNERS’ RECOGNIZES EXCELLENCE IN THE DIGITAL INDUSTRY WOMEN ECONOMIC FORUM 2018 SEES DISTINGUISHED GLOBAL PERSONALITIES IN ATTENDANCE PEPPER CREATIVE AWARDS 2018 RECOGNIZE THE BEST IN ADVERTISING IN SOUTH INDIA RADIO CITY’S POWER OF RADIO MEET HOSTS TOP ADVERTISING INDUSTRY LEADERS TOP INDUSTRY PERSONALITIES ATTEND ZOOM-MYNTRA EVENING TO CELEBRATE THEIR PARTNERSHIP LEADING MARKETERS, EXPERTS SHARE INSIGHTS ON DIGITAL TRANSFORMATION @ADOBE SYMPOSIUM IN MUMBAI NICKELODEON TRADE PARTY SEES MARKETING INDUSTRY LEADERS AND THEIR FAMILIES IN ATTENDANCE GOLDEN MIKES RADIO ADVERTISING AWARDS 2018 RECOGNIZE INDUSTRY’S MOST DESERVING ACHIEVERS AIMA MANAGING INDIA AWARDS HONOUR THE BEST IN THE INDUSTRY BW BUSINESSWORLD’S GREAT INDIA DEBATE BRINGS TOGETHER INTELLECTUALS ACROSS INDUSTRY SECTORS BW BUSINESSWORLD SMART CITIES CONCLAVE PATNA 2018 SEES EMINENT INDUSTRY LEADERS IN ATTENDANCE EMINENT JURY PICKS WINNERS OF GOLDEN MIKES RADIO ADVERTISING AWARDS MADDYS 2018 SEE TOP ADVERTISING AND MARKETING INDUSTRY LEADERS IN ATTENDANCE

He spent 13 years at HT; his previous stints include Whirlpool, Procter & Gamble and Godrej

The case study explains in detail the people strategy executed at GroupM to ensure its talent is digitally charged and is data-centric.

As Zee Telugu completes 13 years, Anuradha Gudur tells us about the channel’s journey