From the release (14-April-2010)
"The study shows that most executives recognize the new realities of the digital landscape:
* 57% agree that deep-seated industry shifts—not the recessionary climate—are the source of the industry’s malaise
* Nearly 70% identified last year’s top strategic priority as the development of new business models, primarily focused on boosting revenues from digital innovation (e.g., products and platforms)
* Developing innovative, new ad sales models is also a clear priority with efforts further intensifying
* More than half the executives (52%) called investing in digital business models their top investment priority, with even great focus for the future
* By 2015, they expect revenue from digital content (as a percentage of total revenue) to increase to 36%, vs. 19% today
* As media companies deemphasize traditional assets, there appears to be a growing recognition that new people and capabilities will be necessary to succeed.
... the survey paints the image of an industry still struggling in part with traditional “analog” operating cultures as well as finding creative new business practices that allow for improved economics:
* 90% of media executives responding said that innovation and insufficient flexibility are the most daunting challenges they face in monetizing their digital efforts
* Almost all participants in the study concede that they must continue to look for significant cost savings if they want to generate the capital necessary to thrive in the future
* Respondents are looking to substantially increase their application of more structural approaches to cost reduction (e.g., portfolio rationalization, outsourcing and off-shoring, process innovation and improved purchasing) and reduce their use of more simplistic approaches such expense management and ongoing cost control
* Interestingly, it appears global expansion is taking a “back seat” to the needs of developing digital businesses and new capabilities (at least for the time being) as respondents universally did not expect to intensify their emerging market investments, at least in the near-term.
As overall digital revenues grow, display advertising will decline. Respondents expect revenues from all kinds of display advertising to decline dramatically, from more than half of all revenues today to just 29% in 2015.
Print media faces the steepest uphill battle. Print executives are the most concerned about their post-recession situation; 40% said they were worse off as a result of the recession, compared with TV & digital media (29%) and business-to-business players (25%). Integrated players universally felt their prospects were unchanged or better than pre-recessionary time. Yet print media predicts the biggest growth leap of all media sectors in digital and interactive revenues over the next five years—from 11% today to 28% of total revenues by 2015. In comparison, business-to-business, TV & digital media and integrated players, starting from higher bases, predict digital and interactive revenues to reach 49%, 37%, and 34% of total revenues, respectively ... more
Download the findings (PDF)
Reset the Media Business Model - Cost Reduction and Growth Priorities in Today’s Media Industry
Earlier paper
2010 Media Industry Perspective (PDF)
