TORONTO- A recent global survey by Ernst and Young suggests that digital will soon be the largest source of revenue for media and entertainment companies.
The professional services firm announced Wednesday that companies from across the globe can expect 57 per cent of their revenue to come from a digital stream in 2015, comparable to just 47 per cent today.
“Companies need to harness new technology not only to deliver digital products and services, but to better understand and connect with their customers,” says Martin Lundie, partner and media technology and telecommunications leader at Ernst & Young.
Tablets, smartphones, social media, and faster Internet connections making content more accessible all contribute to companies making drastic changes in their market consumption.
The idea of a more intimate connection with consumers may seem attractive, but it does not come without its loopholes. In an ever-changing market that constantly demands more, the research also finds there are gaps in building revenue and developing new products and services.
There may be a shift in quality as companies who are not so equipped to deal with swift changes will find it difficult to compete. Now, technical problems cannot take an entire day to troubleshoot – they must be fixed immediately.
“If you stand still on tradition, you will be left behind” Lundie said in an interview.
“A steady stream of brilliantly innovative ideas demands an extraordinarily agile organization to bring them to market,” he adds.
Over 550 executives interviewed were from advertising, publishing, video game, film, music, broadcast, and cable companies worldwide.
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