Growing optimism, but the same business threats remain
There is growing optimism amongst E&M CEOs; 93% (compared to 80% in 2013) are somewhat or very confident in their company prospects for revenue growth in the next three years. E&M CEOs are also more optimistic about the global economy, despite some concerns. 39% of E&M CEOs think the global economy will improve in the next 12 months, compared to 20% last year. However, there are concerns about Government response to fiscal deficit and debt burden and growth in developed economies.
The same business threats remain. The top three things E&M CEOs are extremely concerned about are: shifts in consumer spending and behavior; speed of technological change; and new market entrants.
Innovation will drive growth, but is more Government support needed?
Over half of E&M CEOs surveyed (56%) see product/service innovation as the main opportunity to grow their business in the next 12 months, more than any other industry surveyed. As such, a majority of E&M CEOs are focusing on developing an ‘innovation ecosystem’ which supports growth. However, 58% also think that the Government in their country has been ineffective or greatly ineffective in developing such an ‘innovation ecosystem’.
A more collaborative approach for 2014, but not top of the growth agenda
Nearly two thirds of E&M CEOs surveyed (61%) plan to enter a new strategic alliance or joint venture in the coming 12 months, more than almost any other industry surveyed. However, such deals are not top of E&M CEOs’ growth agenda; only 11% believe that strategic alliances and joint ventures will be the main opportunity for growth.
Business transformation is underway, but what about risk management?E&M CEOs have been busy transforming their businesses in response to global trends. However, with shifts in consumer spending and behaviour and the speed of technological change being key concerns for E&M CEOs, it is no surprise that approximately two thirds are making changes in the areas of customer growth and retention and technology investment. However, only 38% of E&M CEOs are making changes in the area of risk management, compared to 53% of the global total.
71%of entertainment and media CEOs are concerned about shifts in consumer spending and behaviour
93%of entertainment and media CEOs are confident in their company growth prospects over the next 3 years
Michael I. Roth
Chairman and Chief Executive Officer, Interpublic Group
CEO, II Sole 24 Ore SpA