More than most of their counterparts in other industries, CEOs in media are wary about their own company prospects. PwC’s 21st CEO survey shows a divergence between this industry and the rest of the worldwide economy – including the adjacent telecommunications and technology sectors. The results reinforce the growing concern in Media about their challenges in the digital age.
A quarter of the media CEOs were not confident about their company’s prospects for revenue growth in 2018 – double the average for the global sample as well as for the telecom and technology CEO samples. Only 30% were ‘very confident’ about those prospects, which was under the global average of 42%. These were among the lowest numbers of all the industries covered in the survey.
The numbers did improve when CEOs were asked about growth prospects in the next three years. Fully 39% were ‘very confident,’ close to the global average of 45%, and only 3% were ‘not very confident.’ The global average was 7%.
A full 86% said changes in consumer behaviours would be ‘somewhat or extremely disruptive,’ compared to 68% for all industries. Another source of disruption was looming changes in the core technologies of production and service, which drew ‘somewhat or extremely disruptive,’ replies from 75% of E&M CEOs versus 64% globally.
These changes will almost certainly involve the shift from conventional media distribution, through print, broadcast, and projected media, to digital media through internet-based platforms. It also reflects the industry’s declining confidence in its ‘content is king’ business model.