Digital is transforming every facet of business for media and entertainment (M&E) companies. The rise of social media, widespread broadband availability, faster internet connections, and the popularity of smartphones and tablets have changed the demands and expectations of media
and created an astounding variety of new digital products and services. Research suggests that the days of traditional television are waning due to a rise in online media streaming.
“As content offerings and consumer consumption continue to evolve, companies are challenged to apply the traditional accounting standards to their new business models,” says Ian Eddleston, EY Global Media & Entertainment Services Leader.
As traditional distribution outlets continue to evolve, questions have arisen as to how digital download and streaming service providers should account for the licensing and production of movies and television shows. What these providers are doing isn’t very different from what traditional broadcasters and producers of films or television shows have always done, but rather they are distributing content in a different way.