Entertainment and media

While digital disruption remains on the radar, E&M CEOs are more confident in connecting with consumers across digital channels. Cybersecurity is a growing concern, but so too is the competitive threat posed by technology businesses moving into the E&M sector, resulting in a rise in collaboration.

Customer consumption patterns are constantly changing

Entertainment and media CEOs are concerned about digital disruption to distribution channels, a long standing issue for the industry.  However, their responses overall suggest confidence in their ability to deal with the challenges that the digital age continues to generate, as they become more adept at reaching their consumers.
But changes in consumer spending and behaviour remain a worry, with three-quarters of entertainment and media CEOs concerned they could impact growth. We see the rate of change continuing to accelerate across all entertainment and media segments. CEOs are clearly aware of the challenge they face in creating and delivering the right experiences and consumer propositions that can build lasting, direct relationships with consumers.

Digital: a blessing and a burden

In light of the recent, highly publicised cyber attacks, entertainment and media CEOs’ growing concern about cybersecurity – 17 percentage points higher this year than last – is understandable.
But it’s far from the only threat they perceive from technology. More than any other sector, entertainment and media CEOs are concerned about competition from the technology industry (23 percentage points higher than the overall average of 32%).

In response, entertainment and media business leaders have been more active than their peers from most other industries in entering other sectors over the last three years, with the technology industry a particular focus as the boundaries between sectors continue to blur.  

But as well as the challenges that digital technologies create, entertainment and media CEOs are also positive about the opportunities they bring to create value. For example, 83% agree they are helping build  brand and reputation, compared to 71% of CEOs across the total sample.

And a whole host of digital technologies around consumer engagement- including mobile, social, cloud and wearable technologies- are also more apt to be considered ‘strategic’ by entertainment and media CEOs than they are by executives in other industries.   

Strategic alliances remain the road map to the future

More entertainment and media CEOs plan to enter into a new strategic alliance or joint venture over the next year than those in most other industries (68% vs 51% overall), and their appetite to do so is stronger this year than last.  

They’re also more likely than their counterparts in other industries to consider partnering with a competitor (34% vs 23% overall). On par with the global average, 28% of entertainment and media CEOs said they are already partnering with competitors.  

Driven by the need for access to talent, particularly when it comes to new technologies, and for new customers, around a third of entertainment and media CEOs are already partnering with start-ups, the highest level of any sector. Another 25% of entertainment and media CEOs are also considering working with start-ups in the future.

The strong emphasis that entertainment and media CEOs place on pursuing new collaborations and partnerships underscores the relentless dynamism of the sector.

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