The ability and eagerness of individuals to create their own content has been assessed as one of the biggest threats to traditional media in a new survey by Accenture.
57% of the respondents identified the rapid growth of user-generated content (amateur digital videos, podcasts, mobile phone photography, wikis and social-media blogs) as one of the top three challenges they face today.
And, 70% of respondents said they believe that social media, one of the largest segments of user-generated content, will continue to grow, compared with only 3% of respondents who said they view social media as a fad.
In this survey of senior executives in the media and entertainment industry in North America and Europe, Accenture identified growth potential for various media content. The executives surveyed in 2007 showed greater optimism about content driving their revenues than those surveyed last year, with 32% of respondents in this year’s survey stating that content will drive their revenues, compared with only 21% of respondents in last year’s survey.
According to the study:
* 68% of the respondents said they believe that within three years their businesses will be making money on user-generated content
* 62% said they believe their companies will make money through advertising and sponsorships of social media
* 21% anticipate improved profits from subscriptions
* 18% expect profits from pay-per-play offerings
* 24% of respondents said they do not yet know how their businesses will profit from user-generated content.
In anticipation of the changing environment the music industry is moving from a sales model to a consumer consumption model or participation model.
Source: Ken Rutkowski
