Entertainment and media

Entertainment and media

Michael I. Roth, Chairman and Chief Executive Officer, Interpublic Group

There is growing optimism amongst entertainment and media CEOs as they transform their businesses.  Product and service innovation will provide the greatest opportunity for growth and is likely to play a pivotal role in addressing their greatest concerns: shifts in consumer spending and behaviour and speed of technological change.  However, risk management is the area of the business least prepared moving forward.

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

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93%of entertainment and media CEOs are confident in their company growth prospects over the next 3 years

 

Over half of E&M CEOs see product/service innovation as the main opportunity to grow their business

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CEO interview quotes

"The consumer has so much more information available to them because of all the technology that’s out there. The way they communicate is different, what they’re looking for is different. We have to help our clients reach those consumers in a relevant and trustworthy way, and every day that’s changing."

Michael I. Roth
Chairman and Chief Executive Officer, Interpublic Group

"Today the key priority is to have in the company all the infrastructure that can allow us to follow the digital revolution.  This means we are investing in the creation of a common management system where we can archive all the content that we are producing every day and front end technologies to improve product and service design.  We are also improving the quality of our CRM, because it’s so important in order to manage the client better."

Donatella Treu
CEO, II Sole 24 Ore SpA

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