EY - Sustaining digital leadership

Sustaining digital leadership

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What is the secret to capturing the tremendous growth opportunity that digital affords M&E? Embrace continuous innovation, without fear of failure but rather learning from it. That’s what the digital leaders we polled for this report told us.

Continuous innovation in the rapidly evolving media and entertainment (M&E) landscape is not for the faint-hearted. It requires proactively balancing growth and risk, creating a “radically intimate” relationship with customers (whether businesses or consumers) and reimagining products and business models.

In all these areas, our report focuses on lessons offered by “digital leaders” — those M&E companies already driving more than half their revenue through digital and most advanced in their use of the transformative digital technologies: smart mobility, social networking, cloud computing and big data analytics.

Methodology

EY, with the help of Oxford Economics, conducted a global survey of more than 550 M&E executives during 2013.

Respondents came from a wide swath of M&E industry segments, including advertising, broadcast and cable, publishing and information services, filmed entertainment, interactive gaming, music and social networking, as well as from the technology industry.

“The customer has never before had so much power to shape media and entertainment. Yet fast-changing digital technologies are making new forms possible all the time — and customers don’t have preferences on tomorrow’s inventions. This intersection of customer power and rapidly advancing enabling technology is fostering a time of unprecedented opportunity and risk for companies.”

Pat Hyek
Global Technology Industry Leader
EY

“Developing and delivering content remains at the core of what media and entertainment companies do. New technologies have simply redefined many elements that are integral to these businesses, from the creative process to the intimacy of relationships with customers. We see leaders across all media subsectors embracing digital technologies to drive growth in their businesses.”

John Nendick
Global Media & Entertainment Leader
EY

Defining digital leaders

Among the more than 550 global respondents to our survey, we identified and categorized 13% of the companies as digital leaders based on certain criteria. In these companies:

  • Digital revenue already exceeds 50% of their company revenue.
  • Customer profile data is integrated across at least two channels.
  • Second-generation-or-better solutions are in place in at least two of four key technologies (smart mobility, social media, big data analytics and cloud computing) to increase revenue or develop new products or services.

These digital leaders tend to have different characteristics than all other survey respondents. They are:

  • More likely to have been in business longer; 62% of digital leaders have been in business more than 10 years, compared with 53% for all other respondents.
  • Are more enthusiastic about the potential of smart mobility to generate significant revenue over the next 2–3 years versus all other respondents (83% versus 67%).
  • Not necessarily very large companies. In fact, 41% of digital leaders have revenues between US$500m and US$1b.

We hope our report, Sustaining digital leadership!, will enhance your own strategic thinking as your organizations meet, and overcome, the challenges of digital transformation.

EY - Pat Hyek

Pat Hyek
Global Technology
Industry Leader
EY

EY - John Nendick

John Nendick
Global Media &
Entertaiment Leader
EY