Accenture Survey Finds Broad Agreement Within Media and Entertainment Industry on Direction of Digital Market

NEW YORK; May 05, 2008 – Media and entertainment companies are in broad agreement on the way the digital market is evolving, where the opportunities lie and what will drive revenues over the next five years, according to findings of an Accenture (NYSE: ACN) survey released today.

Accenture’s 2008 Global Media Content Survey — the company’s third annual survey of more than 100 senior executives in the media and entertainment industry -- examined the growth strategies of companies across the landscape of advertising, film, music, publishing, radio, the Internet, videogames and television.

The survey revealed that there appears to be strong consensus as to what will drive future growth. The vast majority of respondents (70 percent) indicated they derive some revenue today (albeit less than 10 percent) from new alternate forms of media – such as downloading or watching TV programs “on demand,” digital advertising or user-generated content – or can’t determine how much of their revenue comes from these new sources. Based on the participating companies, that small percentage of revenue actually represents tremendous growth and substantial revenue streams are being derived today from these new forms of media.

Four of the main sources of revenue growth cited by respondents in this year’s survey are the same as those identified in last year’s survey, which indicates growing consensus about the potential of new platforms. These four sources of revenue growth — predicted to be the dominant business model five years from now — are multi-platform distribution, short form video, social media / user-generated content, and advertising.

“It is great news that media organizations are developing a consistent strategic view of the key growth areas, but execution is slow,” said Gavin Mann, digital media lead for Accenture’s Media & Entertainment practice. “There clearly remains a huge effort to put in place the necessary capabilities, and it is apparent that the size of the task is still not fully understood. I am not claiming it is easy to turn around some of the world’s greatest media organizations, but I do believe it is essential if they are to remain great.”

While half (50 percent) of the executives interviewed said they know which capabilities they need to take advantage of in this new digital market, Accenture believes that many have a false sense of their current capabilities. Sixty-six percent of the respondents have less than 40 percent of required capabilities, a number that is unchanged since last year’s survey, indicating that companies need to implement new digital technologies or be left behind.

For example, nearly 80 percent of executives said that their organizations have a consistent view of intellectual property rights (i.e., have the same understanding of the rights associated with a specific intellectual property across their entire business). In Accenture’s experience, considerably fewer organizations actually have the flexibility necessary to capitalize on fast-developing opportunities.

“We interviewed executives at the very top of their organizations, and at this level it might appear that they share a consistent and flexible view of intellectual property,” Mann said. “However, in many cases we believe this will actually require inordinate manual efforts, or work-arounds, throughout the organization each time a new distribution channel is launched. Such a cost structure is not sustainable over the long run.”

Among the survey’s other key findings:

More information on Accenture’s Global Media Content Survey can be found at


As part of its third annual Global Media Content Survey, Accenture surveyed more than 100 senior leaders and decision-makers in the media and entertainment industry -- spanning television, videogames, film, music, radio, publishing, interactive entertainment and advertising -- in North America and Europe. The goal of the survey — which was based on in-depth telephone and face-to-face interviews with select executives in the United States, the United Kingdom, France, Germany, Austria, Belgium, Switzerland, Italy and Brazil — was to identify where industry executives believe the greatest opportunities and challenges will come from over the next five years.

About Accenture

Accenture is a global management consulting, technology services and outsourcing company. 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. With 178,000 people in 49 countries, the company generated net revenues of US$19.70 billion for the fiscal year ended Aug. 31, 2007. Its home page is

# # #


Gary Morgenstern
+1 973 301-3347

Josh Wozman
Media Relations for Accenture
+1 415 318-6441