|Digital revenue coming on strong|
According to industry leaders and credible observers and statisticians, the tipping point (over 50% revenue from digital) is ALREADY here --- at least in some of the media and entertainment (M & E) businesses --- which includes publishing.
The remainder of the major media/entertainment business sectors will cross the greater than 50% digital revenue finish line by 2015.
Just what are the industries included in the M & E field? They are:
Advertising, broadcasting and cable, filmed entertainment, interactive gaming, publishing and information services, music, social media and the technology industry.
I know you have heard all kinds of figures thrown about from different sources (some good, some bad, some truncated to show only a desired result, to seemingly convince you that one format or the other (such as print or digital) is dominating/growing/etc..
Tonight we will stand back a little from just publishing and books and survey the entire industry they help make up.
It will be interesting to observe over the next year and a half or so to see if Ernst & Young, one of the largest professional service and accounting firms in the world, is accurate in its forecast of digital revenue gains in all the M & E business fields.
WARNING: the following article contains really informative links :)
Ernst & Young: Media Companies' Digital Revenue will Take the Lead by 2015
Most of the revenue for major media and entertainment (M & E) companies is about to go digital. That's the picture according to a new report from Ernst & Young, which found that revenue based on digital sources is about to exceed 50 percent, on average, for the first time.
The report, Digital Agility Now!, said that revenue from digital sources currently stands at 47 percent in the companies represented by the 550 senior executives who were surveyed. By 2015, digital revenue is expected to account for 57 percent. Represented industries included advertising, broadcasting and cable, filmed entertainment, interactive gaming, publishing and information services, music, social media and the technology industry.
The surveyed companies are definitely aware of the digital evolution, with more than 95 percent saying they are engaged in the transformation. Fifty-six percent said their top strategic priority is “creating a culture of innovation,” and 39 percent’s top digital transformation challenge is figuring out how to cope with new digital business models.
In addition to noting this changeover, the report identifies characteristics of what it describes as M & E digital leaders.” These are companies that deliver digital products and services, but are also building “more agile organizations capable of sensing and responding far faster to shifting customer expectations and marketplace opportunities and risks.”
Digital leaders are also companies which have digital revenues that are already more than half of their total, have customer profile data integrated across at least two channels, and are using second-generation technology in at least two of four key areas — smart mobility, social media, Big Data analytics and cloud computing.
Pat Hyek, Ernst & Young Global Technology Industry Leader, said in a statement that mobile/social/cloud and Big Data analytics technologies are “game changers for M & E firms” that can help those who “broke ahead of the package in the early stages of digital” extend their advantages, and provide opportunities to those who “fell behind to adapt quickly and catch up.”