Accenture Media and Entertainment The future of ...careercatalysts.com/pdf/Accenture_The_Future_of... · period 2002-2007 to 8.7 percent from 2007-2008. Investors clearly favoured

Accenture Media and Entertainment

The future of broadcasting: a new storm is brewingBy Charlie Marshall and Francesco Venturini

Change is the only constant The broadcast sector is emerging from the toughest period in its history–and there are difficult waters ahead.

1 The future of broadcasting: a new storm is brewing The future of broadcasting: a new storm is brewing 2

During the recession, cyclical and structural forces combined to provoke panic within the industry and drain investors’ confidence. While the upturn in the economy has boosted the financial performance of traditional broadcasters, this bounce should not obscure the underlying trends that threaten to overwhelm broadcasting businesses that do not transform for the multiplatform digital era.


This latest installment in Accenture Media and Entertainment’s “Future of Broadcasting” series looks at how broadcasters fared during the recession and how they are positioned as the economic recovery takes firmer root, with the dimensions of a new ‘connected broadcast’ market coming into sharper focus.

We argue for a new vision of the future of broadcast-ing, in which linear TV is

redefined to be relevant for a connected, interactive, consumer-centric world.

While the economic cycle has begun to turn in the right direction, this is no time for complacency. If anything, the structural challenges faced by broadcasters are becoming more acute. Consumers and technology are ever more sophisticated and the new breed of global competitors – digital natives like Google and consumer electronics

players like Apple and Samsung – are starting to show their true colors.

Broadcasters should play to their strengths and take heart from the continued resilience – indeed, growth – of linear viewing. But they must also continue to transform into high performing digital, multiplatform businesses that drive success, above all, from an increasingly intimate knowledge of their consumers.

Broadcast Industry Shareholder Value

3 The future of broadcasting: a new storm is brewing

Our regular analysis of trends in Total Return to Shareholders (TRS) and Enterprise Value in the broadcasting sector seeks to gauge what is important to shareholders and why. Total Return to Shareholders is our measure of the value of stock plus dividends, correlated to the efficiency of operations and effectiveness of long-term investment decisions and strategies (as indicated in Figure 1).

Investors were getting nervous before the recession

In early 2008, before the depths of the recession, our shareholder value analysis of 20 major listed broadcast-ers from across the globe showed investors already becoming nervous about the industry. TRS compound annual growth rates (CAGRs) had declined from 21.5 percent over the period 2002-2007 to 8.7 percent from 2007-2008. Investors clearly favoured those businesses with subscription

models over the traditional, advertis-ing-funded models heavily reliant on linear TV: four of the top five performers in TRS terms in 2007 had subscription-based, multichannel, enhanced TV services at the core of their business models (Austar, Dish Network, BSkyB and Direct TV).

After the slump, the market is preparing to reward more sophisticated business models, whether pay or free

Fast forward to 2011 and the industry, and the wider world with it, is emerging from the most severe economic recession experienced in at least a generation. In 2008 the industry fell fast and fell hard. By the end of 2008, Enterprise Value was down by an average of 33 percent year-on-year across the sector. Analysis of the slow road to recovery since then is illuminating for a number of reasons:

• Total Return to Shareholders has increased across the board – for Pay TV and Free To Air businesses alike – with a marked interest in new models such as Netflix (see figure 2)

• Enterprise Value across our selected peer set is back up 44 percent from the end of 2008 to the beginning of 2011, but that is still around 10 percent below pre-recession levels (see figure 3)

• The recent recovery of Free To Air (characterized in figure 4 by measuring the growth in enterprise value divided by invested capital ratios) has been particularly strong. But this is no reason to get overexcited – it arises largely from the bounce in the traditional advertising market (and TV’s share of advertising within it) rather than improvements in the core business fundamentals underpinning linear TV broadcasters.

The future of broadcasting: a new storm is brewing 4

Value Creation

Total Return to Shareholders (TRS)

Value of thediscounted cashflows to shareholdersor EconomicValue Added (EVA)

Increasing spread,the differencebetween ROIC and WACC, creates value

Magnifying positivespread by growingrevenue alsocreates value

Spread

ROIC

Cost of Capital

Organic

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Figure 1: Accenture’s Value Creation Roadmap

3 The future of broadcasting: a new storm is brewing

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Netflix, 2.26Dispersion2 = 0.83

ProSieben, 1.63TWC, 1.30Sun TV, 1.25ITV, 1.24BSkyB, 1.24Antena 3, 1.21DirecTV, 1.20TF1, 1.16Mediaset, 1.10Televisa, 1.08RTL, 1.06Nippon, 1.04CBS, 1.04Canal Plus, 1.00Dish TV, 0.91Tokyo Br, 0.80

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1 Represents the ending value of an initial investment of $1.00 in a company (for example: $1.00 invested in Netflix on 6/30/2008 would be worth $2.26 on 1/31/2011)2 Dispersion calculations do not include Netflix. Nippon refers to Nippon Television, TWC refers to Time Warner Cable and Tokyo Br refers to Tokyo BroadcastingSource: S&P, Accenture analysis

The future of broadcasting: a new storm is brewing 4

Last reported Invested Capital has been used for 01/2011 data points for all companies. Industry enterprise value does not include Netflix. Source: S&P, Accenture analysis

Figure 3: Enterprise Value Split: Pay TV-Free To Air (6/2008 - 1/2011)

$87

Pay TV segment (BSkyB, Canal Plus, DirecTV, Dish TV, TWC)

Industry Enterprise Value CAGR: 19.2%Free To Air Enterprise Value CAGR: 20.6%Pay TV Enterprise Value CAGR: 18.1%

$56

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Pay TV segment Free To Air segment

Figure 4: Enterprise Value/Invested Capital (EVAC) CAGR

Source: S&P, Accenture analysis


So the storm caused by the recession has abated. But the broadcast industry has not made its way back to pre-recession levels of value and is still under siege in many areas. Why is this?

We believe that investors now have their sights set on a new and more powerful structural storm that will follow the cyclical problems. That is to say the maelstrom of new consumption, distribution and revenue models – stirred by new market entrants jumping in with force – has crossed the horizon and is approaching, fast.

The main forward-looking conclusions we draw from our analysis and test further in the rest of this paper are:

• Linear TV remains at the core of successful business models but is continuing to lose financial sustainability as the underlying economics become harder to manage in a fragmenting market

• This means that traditional broadcasters must increase their relevance to consumers on multiple platforms and transform their organizational capabilities to create business models that successfully combine linear TV with new channels and products



More video, everywhere!

While significant attention is paid to the rise in non-traditional TV and audio-visual consumption through online and on demand services like YouTube, overall traditional TV consumption is also growing. People are watching more video content not only on TV but across all platforms – as highlighted by our latest consumer survey (figure 5) and in viewing volume data from e-Media Institute (figure 6).

The whole pie is increasing. Take up of HD services (around 25 percent of BSkyB’s 10m PayTV subscribers in the

UK have access to HD+PVR services) and the (albeit slow to get going) rise of 3D TV contribute to this expansion. Recent analysis from Informa expects 8.7 million US households to be active 3D TV viewers by the end of 2015, about 7 percent of the US market; Japan (2 million households), the UK (1.6 million) and Korea (1.5 million) making up the remainder of the Big Four.

This growth in video consumption is reflected in video advertising revenues. Global TV advertising grew more than 11 percent year-on-year to $160bn in 2010 – and, critically, TV’s share of total advertising spend is also on the rise (from 41 percent in 2010 to 43 percent in 2015, according to recent

forecasts from MagnaGlobal, part of Interpublic Group). Even stronger growth will come from online video advertising as that market begins to innovate and move towards greater maturity. Although from a small base relative to TV advertising ($3.3bn in 2010 vs. TV’s $160bn), we expect online video advertising to grow at around 20 percent CAGR over the next 5 years (see figure 7) to reach around $12bn by 2016, somewhere between 5% and 7% of traditional linear spend. According to Deutsche Bank, in more developed markets such as the UK, France and Germany, online video advertising spend should reach around 10 percent of traditional, linear spend by 2015.

Linear Rules Ad-funded linear TV remains central but its fundamentaleconomics are structurally challenged


Laptop computer

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Responses to question “Has your viewing of video content (broadcast shows, consumer generated content, movies, music videos, content from Netflix, Hulu, AppleTV etc.) on each of the following devices increased, decreased or stayed the same over the past year” Source: Accenture 2011 Video Solutions Survey, all 6,550 respondents

Figure 5: Net Increase in Video Viewership across Multiple Devices

Figure 6: Average Video Consumption in EU (minutes per viewer per day)

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Figure 7: Compound Annual Advertising Growth Rates by Medium (2011 – 2016)

2005 Online video data estimated t be marginal so not included into figureSource: Accenture analysis on e-Media Institute data, 2011

Source: MagnaGlobal 2011 Advertising Forecast

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2005 Online video data estimated to be marginal so not included into figureSource: Accenture analysis on e-Media institute data, 2011

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But the growth in video advertising masks a different story. Traditional ‘one-way’ display advertising revenue is falling in relation to GDP and unlikely to recover to historic levels (see figure 8). Most broadcasters are now close to full sell-out of their advertising at least in peak times, so growth needs to rely more on pricing. And broadcasters will find it difficult to increase their advertising prices owing to a combination of increased advertising inventory from online display, greater focus on quantified advertising ROI in an online environ-ment and an absence of new industry sectors entering the advertising market (e.g. from privatization or deregulation) and providing new spend.

All the more reason then for broad-casters to move aggressively into online. Here, the growth in display is sizeable and, crucially, broadcasters can take positions in a new area of structural growth to develop more direct relationships with consumers/viewers, opening up access to new digital marketing services budgets.

While overall consumption and advertising may be up, fragmentation is increasing too. The proliferation of content and multichannel viewing options is spreading available audi-ences more thinly over a wider array of content, channels and devices. This puts economies of scale under attack because the significant fixed costs of

operating a linear broadcast channel remain high while the audience (and therefore revenue) for any particular broadcast output is decreasing.

Put another way, while consumers still appear to love linear TV at a total market level, the fundamentals of that business (e.g. distribution over traditional broadcast networks) are losing their competitive advantage as newer, more targeted forms of distribution emerge, for example proprietary and vertically integrated distribution networks are being challenged by open broadband distribution in the form of Over the Top TV (OTTV) models.

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Figure 8: Global TV advertising as a percentage of GDP (2000-2016 Forecast)

Source: Accenture analysis of International Monetary Fund and MagnaGlobal data, 2011

Acknowledging that the main TV screen is still the de facto home entertainment device, OTTV gives new entrants the ability to deliver video content and enhanced entertainment experiences to consumers on the main screen from outside the traditional paths of linear programming (terrestrial, satellite and cable). The power of linear, for so long in the hands of traditional broadcasters, is thus in huge danger of being eroded from a number of angles. We see a number of distinct groupings of new players emerging, each with their own sources of competitive advantage:

• There are content players – not only traditional broadcasters defending their routes to market but also rights holders and producers who now have the ability to go direct to consumers in a meaningful way.

• We also have distribution service providers such as telcos who will attempt increasingly to leverage their strengths in distribution (e.g. through proprietary content delivery networks) to become the highest quality, most favoured aggregators. After often expensive and unsuccessful ‘go it alone’ forays into IPTV services, however, we expect telcos to be among the more collaborative (rather than competitive) players.


• Device manufacturers like smartphone, tablet and TV manufacturers have the opportunity to become access gateways and develop their own platforms and widgets on which to host or provide connected services – and they can play to their core strengths in understanding consumer markets, innovation and product development cycles to stay ahead.

• And open internet services such as social networks and cloud-based services, whilst they may lack content and media market expertise, can leverage their expertise in intercepting and managing the evolving needs and behaviors of new online consumers.

Over the Top TV has the potential to be the ultimate Trojan Horse

In the UK, a recent study by Digital Clarity of mobile internet users under the age of 25 produced the following findings:

• 80 percent of the panel used handsets to communicate with friends when watching television.

• 72 percent of interviewees posted comments on the shows currently commanding their attention using Twitter. Facebook recorded the next highest total on the same metric, registering 56 percent, while mobile applications logged 34 percent.

• Among the audience engaging in this activity, 62 percent had used all three options to air their views about the TV programs they were watching in real time.

However, for the most part, the owners and broadcasters of the original content that generates these conversations do not control the multiplatform and connected services that drive related activity and add to the stories. Their content is the object rather than the subject.

Some broadcasters and content creators have begun to attempt to take control (e.g. by offering multiplatform content on their own websites or official channels on 3rd party sites like YouTube) but success in the multiplatform market requires much more than simply adapting and redistributing existing TV content. Rather, multiplatform offers a way of extending the way consumers engage in stories by creating platform-specific content so that consumers enrich their interaction

Multiplatform relevance is the new battleground Non-linear, multichannel consumption is a complementnot a substitute


Of course, much of this analysis is not news to most broadcasters. But what is new is the revelation that the activities which broadcasters feared would destroy linear viewing are in fact fueling its increase and are central to engineering its future success. For example, consumers are not using online catch-up TV services as a substitute for their regular, scheduled viewing. They really are using it to ‘catch up’ with the shows they regularly follow.

To illustrate this, a recent Thinkbox/Decipher survey of 3,000 digitally enabled UK households found that:

• The share of respondents using catch-up TV services increased from 64 percent to 80 percent

• 89 percent of those use catch-up to stay up to date with live TV programming (vs. 78 percent in 2008)

In much the same way, additional devices are being used as a comple-mentary addition to traditional TV viewing, augmenting the viewer’s experience and allowing consumers to share their individual viewing experience with others in communi-ties that continue to build around TV content. TV is, and has been more or less since its invention, one of the most global, compelling media. It has long provided more than its share of ‘water cooler’ conversations. What’s new is that social networking technologies and digital devices are creating real-time communities around content that are in fact reinforcing the power of the schedule.

Broadcasters need to find their place on new platforms with linear TV at the core

There is a growing complementarity between linear viewing and social media interaction. The same Thinkbox/Decipher analysis just cited reveals that 60 percent of respondents used the Internet while watching TV at least 2 to 3 times per week, 37 percent chatted about a TV program online, 19 percent shared TV content online and 9 percent joined a TV-related Facebook group.

Popular reality TV shows such as The X Factor in the UK, American Idol (US) and Big Brother have all driven high volumes of social networking activity – on Twitter and Facebook particularly – as viewers interact with the shows and each other in real time.

• In the US, February 2011’s Academy Awards ceremony attracted 37.6 million viewers and generated 36.4 million messages (tweets) on Twitter, making it the second most popular TV program on the social network after Superbowl 2011 that same month (38.5 million).

• In France, according to research from Havas Sports & Entertainment, 48 percent of people aged 15-35 used social network sites (Facebook, Dailymotion, YouTube, Twitter, Blogs) every day to interact around the FIFA World Cup 2010 TV programs.

with characters, plots, settings and so on to create truly immersive experiences. For example, a soap opera should no longer be thought of simply as a 30-minute TV show but as an entire world with numerous possible multiplatform interactions between characters and audience – all of which have a value. Take the example of MTV’s hybrid reality TV/soaps such as The City or Jersey Shore. The shows offer Twitter, Facebook and dedicated webpages with which users can interact with content, characters and one another.

Consumers do not watch content in the same way on every device or platform. They change their behavior according to a range of factors. So each digital service and device creates a unique form of consumer behavior. Broadcasters therefore need to learn the essence of these platforms and the behaviors they generate.

With that understanding they need to create genuine multiplatform content that reinforces linear TV, rather than trying to shoe-horn it onto those platforms (see fig. 9)

These are not prescriptions for the future. They are happening now. So there is no time to lose as the competitive field comes into sharper and clearer focus. While at one point it seemed that telcos would offer serious competition to broadcasters, their largely negative and expensive forays into TV content have likely excluded them as direct competitors. Their future efforts will focus on supplying smarter distribution and infrastructure that plays to their strengths.

Instead it is the already dominant digital natives like Google and Apple that are flexing their considerable muscles to seize control of the digital media value chain through their intimate knowledge of and connections to their customers.


And those are the capabilities that broadcasters have to emulate.

So while playing to their strengths (content and the power of the schedule), broadcasters need to change their game plans to compete effectively. The distinction is no longer about free vs pay models. Consumer relevance is now the key differentiator. As distribution increas-ingly becomes a commodity, winners will be those that command the user experience across all points at which consumers interact with content. And to achieve that, broadcasters need to ensure that their content is created with those different platforms in mind from the outset, rather than adapted or cut down for reuse. That means content ideas themselves must be assessed for their application across platforms and devices and their ability to create relevant and powerful attachments with consumers (which viewers and audiences increasingly are).

TV: the narrative heart .com: the interactive hub

Figure 9: "True Multiplatform" Ecosystem

Other digital platforms and devices – channels for complementary storytelling,brand building and driving audiences back to TV


We only have to look back at the Total Returns to Shareholders analysis in figure 1 to see where the market’s true sentiment lies. Netflix is the clear leader in the peer set selected for our shareholder value analysis – its TRS grew by 240 percent in the year to January 2011, and by 50 percent CAGR over the five previous years. With this power base Netflix has now begun to encroach into traditional broad-casters’ territory and has begun to outbid traditional networks for

premium content rights (e.g. the $900m five year deal it agreed in 2010 with Paramount Pictures, MGM and Lionsgate for the rights to stream films before they were shown on pay-TV; and, even more worryingly for broadcasters, recent rumors of knock-out bids for originated drama content.

When we consider the future value component of the broadcasting industry’s enterprise value (excluding Netflix) (i.e. the value that investors are placing on likely growth from

Get sophisticated to survive Determination of future value will lie in a preference for sophisticated over unsophisticated linear TV models


$7

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Industry Future Value CAGR: 126.7%Pay TV Future Value CAGR: 102.5%Free To Air Future Value CAGR: 163.5%

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Figure 10: Future Value Split: Pay TV-Free To AirFY 2008 - 1/2011

Source: S&P, Accenture analysis

future investments and cash flows, over and above steady state perfor-mance from current assets) an inter-esting picture emerges. Investors are no longer choosing clearly between Free To Air and pay models (see fig.10), as they were a few years ago. Our hypothesis is that the distinction has become more subtle, and is now between sophisticated and unsophisticated linear models – i.e. those that are prepared for a multi-platform, digital, consumer-centric future vs. those that are not.

What are the key attributes, then, that broadcasters need to develop in order to confront these challenges and weather – even conquer – the new storms ahead?

We see 5 key differentiators that every broadcaster should be building into the heart of its business and operating model.


The recession has necessarily taken up a considerable amount of management time and attention, and there is still a long way to go and no time to lose, as our wide ranging 2011 Global Media and Entertainment High Performance Study 2011 study has highlighted. In keeping with the hypotheses put for-ward in this paper, the biggest chal-lenge over the next one-to-two years identified by the senior broadcast industry executives we spoke to

across the globe was around new monetization models, with competi-tion from new players coming in sec-ond (see figure 11).

The traditional broadcasting industry remains on its transformation journey – and the top level imperatives for broadcasters are much the same as they have been for the last couple of years: to transform into digital, connected B2C businesses. Those imperatives have implications right across organizations.

Conclusion Accelerated transformation activities and improved focus on the multiplatform consumer are the keys to unlocking future valueFigure 11: Top Challenges faced by Broadcasters

Responses to question “What is the top challenge that your company faces, or expects to face, in the next 12 to 24 months?”

Source: Accenture Media & Entertainment High Performance Study 2011

Identifying new monetization models

Speed/ability to transform your digital operating model

Providing a better digital consumer experience

Competition from new players

Cross-sector competition

Declining demand

Other

44%

13%

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0%

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1Play to and enhance your strengths

Traditional, linear content will remain the focal point of consumer media activity for the foreseeable future. The context within which it is distributed and consumed is changing fast – but the core remains. Broadcasters must therefore increase the barriers to entry around linear content and its monetization – focusing on originated productions, exclusive rights, rights management, advertiser and subscriber relationships, cross promotion capabilities – to maintain position at the core of the new ecology. Be proud of, exploit and develop your heritage as a TV company – still the most powerful and pervasive entertain-ment medium in the world.

Crucially, broadcasters – especially those that have their own production capabilities – must stimulate the devel-opment of true multiplatform content: i.e., entirely new forms of creativity and content which are conceived, developed and produced for multiple platforms simultaneously.

2Build new insight, analytics and audience measurement capabilities

It is no longer acceptable to follow the market (often towards the back of the chasing pack) in responding to new consumer and competitive behavior. Broadcasters must be aware of what is happening across the communications and hi-tech landscape to identify timely upcom-ing competitors, new technologies, new trends in viewer behavior and needs – and therefore opportunities for new consumer and advertiser relationships.

Advanced analytics have a huge role to play in deciding who wins and loses in the future multiplatform, multichannel audience landscape. Most importantly, as people increas-ingly engage with content and services across different platforms, broadcasters must be able to offer compelling and integrated audiences to advertisers. This will involve not only tracking but also stimulating new cross-platform communities (which, in turn, reinforce TV audiences). These communities then need to be nurtured and their effectiveness in delivering value to advertisers measured and optimized. Measuring effectiveness in this new multiplat-form, digital space is a very different game to delivering audiences and commercial impacts to linear display advertising buyers.

For broadcasters building new direct payment models, such as micropay-ments, pay per view or subscription propositions, analytics will be crucial in optimizing these models and growing them over time.

3Learn how to innovate and take calculated risks

Broadcasters and traditional media and entertainment businesses the world over are beginning to see that competing successfully often depends less on “what” they do than on “how” they do it. The reason they struggle to respond to disruptive new ‘digitally native’ competitive forces is that they do not share the consumer product heritage of those new competitors – or their instinctive ability to take risks, run rapid product development cycles, experiment, fail fast and try again. This applies not just to new products but to new commercial models. So where an attractive market does not yet exist (for example, in multiplatform digital content), broadcasters must be the ones who seize control and invest ahead of revenue models with confidence to shift the commercial landscape in their favor.

Driving growth through innovation requires fundamental changes – to operating models, workforce skills, partnership strategies, risk appetite and management. There is also an opportunity to leverage “Generation Y” – taking into account young resources both from outside (e.g. in the apps development community) as efficient and effective channels for fresh digital ideas and insights.

17 The future of broadcasting: a new storm storm is brewing The future of broadcasting: a new storm is brewing 18

4Build new technology skills and understanding

Technology has always been funda-mental to broadcasting – from audiovisual content capture through to broadcast scheduling, playout and transmission. It just so happened that the barriers to entry around this technology have historically been (often for regulatory reasons) almost insurmountable. Traditional delivery networks were thus proprietary and broadcasters were vertically integrated from the word go.

That era is over, and media distribu-tion and consumption in the digital age is a different technology game where broadcasters do not own or control the pieces – a game of multiple devices (where the TV screen is – literally – only one part of the picture) and multiple distribution protocols (where content delivery networks and the cloud are the new broadcast transmission towers). But broadcasters will still need to find ways to deliver complex video services and orchestrate their back- end technology systems to manage and cater to a viewer as one entity across multiple platforms.

This is not to say that broadcasters need to become vertically integrated technology businesses in the digital world. It does, however, mean that they need world-class technology and IT skills within their businesses (and need to create the organization-al and cultural attributes to accom-modate them) because knowing how and where to invest in technology is fundamental to future success.

5Above all, focus on the consumer, the products you are delivering and how you are delivering them

Delivering a first rate consumer experience is more important than ever in developing the sophisticated broadcast businesses that investors will value in the future. Delivering high quality, simple, user friendly, familiar and good value products and services to capture, retain and monetize restless audiences across multiple access points should become a fundamental organizational focus for broadcasters. Editorial, production and commercial teams should all build their strategies around consumers (and be incentivized to do so) and this thinking should become the force that then tears down the walls separating these traditional business silos.

Broadcasters must not lose their heritage in getting powerful, linear content in front of audiences and forging deep emotional connections with those audiences. But the fundamental shift now required is to become true B2C businesses that evolve these audience relationships into direct consumer relationships. This is the revolution at the core of a broadcaster’s digital transformation. Successful consumer businesses excel in transaction management, customer service, marketing, product development and supply chain management. With these attributes, broadcasters can start to lay claim to being sophisticated businesses – and find themselves on the right side of industry shareholder value.

17 The future of broadcasting: a new storm storm is brewing The future of broadcasting: a new storm is brewing 18

Copyright © 2011 AccentureAll rights reserved.

Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

About the Accenture Media & Entertainment Industry Group

Achieving excellence in engaging and interacting with consumers is the content industry's new battleground. While Media and Entertainment companies have made significant steps to reinvent themselves from a technical perspective, they are facing new challenges around their operating models. Our M&E practice helps clients determine the right digital business model and optimize future revenue growth through a multi-platform approach. For more information on this study and what Accenture can do to help you reach high performance in your business, please visit www.accenture.com/mediaandentertainment.

About this Point of View

Accenture believes that the strength of broadcasters’ prospects depend on their ability to use insights about a fast changing media landscape and to drive change through their businesses. We base our convictions on our client work at the heart of the broadcast, media and entertainment sectors and our constant surveys and studies of the industry and its consumers.

This is the second in Accenture’s “Future of Broadcasting” series Points of View. This series brings together our proprietary Shareholder Value Analysis (SVA) – which gives us insights into the links between strategy, performance and shareholder value – with the experience we gain from our client work and other primary and secondary research and analysis.

This Point of View is reinforced by two further studies: our 2011 Global Media and Entertainment High Performance Study 2011 (including in-depth interviews with 35 senior broadcast industry executives across the world) which benchmarks the characteristics of high performing content companies of the future, and our 2011 Video Solutions Survey (a survey of 6,550 consumers across seven geographies) which gives us first hand insight into the latest multiplatform viewing trends.

Contacts

For more information please contact the authors:

Charlie Marshall Senior Manager, Accenture Strategy, Media and Entertainment [email protected]

Francesco Venturini Global Lead, Broadcast Industry, Accenture [email protected]

Egidio Di AlbertoSenior Manager, Accenture Strategy, Media and Entertainment [email protected]

About Accenture

Accenture is a global management consulting, technology services and outsourcing company, with more than 215,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.6 billion for the fiscal year ended Aug. 31, 2010. Its home page is www.accenture.com.

Accenture Media and Entertainment The future of ...careercatalysts.com/pdf/Accenture_The_Future_of... · period 2002-2007 to 8.7 percent from 2007-2008. Investors clearly favoured

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