Friday, 21 Sep 2012
Cover of the Content Disruptors report
Content Disruptors is a report written by the Economist Intelligence Unit commissioned by UK Trade & Investment. Based on a recent global survey of almost 500 executives from the media and entertainment industry, the report examines the key trends reshaping content markets and explains how companies are adapting to succeed in a fast-changing world.
The report found that despite the ceaseless wave of disruption and innovation in the digital world, the outlook for media and entertainment companies as a whole is bright. The appetite for media shows no sign of abating - indeed people seem eager to consume multiple media simultaneously. New technologies are giving rise to innovative formats and genres, and sophisticated consumers are emerging in high-growth markets with money to spend. The report also provides insights into the trends that are reshaping the content business, as well as some of the key strategies that will help companies chart a successful future.
Key findings include:
Digital is where the growth is, but most companies are still searching for the right model: Digital content will be the fastest-growing part of the industry over the next decade and is expected to account for 80% of the media we consume by 2020 (up from two-thirds in 2010), but only 12% of firms polled in our survey already have a digital distribution model that is commercially successful.
The revolution has only just begun: Executives in our survey identify a series of trends that have already transformed their industry. The majority think there is plenty of change still to come, with three-quarters saying that "we have so far only experienced a small part of the overall impact that the shift to digital will have on our economy".
Opportunities outweigh threats: The digital switch is increasing competition and forcing a rethink of operating models. As with any structural shift, this is creating winners and losers. Nevertheless, when asked whether they see different types of change the proportion of respondents seeing them more as opportunities never falls below 60%.
This is still a hits business: Devices and formats may be changing, but traditional media players still have some advantages.
If it’s good enough, people will pay: Nearly seven in ten (69%) respondents to our survey think consumers will get used to paying for well-targeted content as digital models mature.