World media and entertainment executives are focused on the impact of technology on their industry and believe technology-savvy managers are critical for success.
That`s the finding of a new study by Ernst & Young based on research including interviews with 23 executives of global companies like Walt Disney, Viacom, Time Warner, Reuters and BskyB.
"Local CEOs have much to learn from their peers in this study as the media and entertainment industry prepares to take on the challenges of new technology and operational re-organisation," says David Purnell of Ernst & Young SA.
Executives participating in the study say the digitisation of content, combined with the increasing adoption of broadband distribution technologies, is creating major shifts, challenges and opportunities.
"Technological changes are forcing media and entertainment companies to rethink every aspect of their business, from intellectual property protection to new models for distribution and revenue creation," says Steve Barber of Ernst & Young Europe.
Building the right management team was cited by 75% of participants as a major internal challenge to success, and technology knowledge was identified as the skill that will differentiate the next generation of managers.
The study identifies digital video recorders (DVRs) as the innovation most likely to disrupt the status quo because of time-shift programming that allows viewers to bypass advertising.
"Although time-shift DVR is due in SA only late next year, we are expecting digital migration to have a significant impact on radio and television in this country, says Purnell.
"Advertising revenues are likely to migrate away from traditional broadcast media with the inevitable proliferation of subscription television services and spectacular online content development enabled by the advent of broadband," he explains.
Share
