User-Generated Content No.1 Threat to Media and Entertainment Industry: Accenture Survey
As part of an annual study to examine the growth strategies of companies in the media and entertainment industry, Accenture surveyed 110 senior executives at advertising, film, music, publishing, radio, Internet, videogame and television companies in North America and Europe.
57% of the respondents identified the rapid growth of user-generated content — which includes amateur digital videos, podcasts, mobile phone photography, wikis and social-media blogs — as one of the top three challenges they face today.
70% of respondents said they believe that social media, one of the largest segments of user-generated content, will continue to grow, while only 3 percent of respondents view social media as a fad.
The new landscape offers opportunities as well as challenges:
68% of the respondents said they believe that within three years their businesses will be making money on user-generated content.
62% said they believe their companies will make money through advertising and sponsorships of social media. Other sources of profits cited were subscriptions (21 percent) and pay-per-play offerings (18 percent).
24% of respondents said they do not yet know how their businesses will profit from user-generated content.
The executives surveyed in 2007 showed greater optimism about content driving their revenues than those surveyed last year: 32% of respondents in this year’s survey said that content will drive their revenues, compared with only 21% of respondents in last year’s survey.
Asked to identify which type of content offers the highest growth potential for their industry over the next five years: 53% cited short-form video, followed by videogames (13 percent), full-length film (11 percent) music, (11 percent), consumer publishing (9 percent) and business publishing (4 percent).