More than half of the revenues of Canadian entertainment and media firms will come from digital sources by 2015, according to a recent study by tax and financial advisory firm Ernst &Young Inc.
The company said at least 68 per cent of media and entertainment firms in the country are transforming their organizations and business models and they expect smart mobility to drive future revenue growth.
“With the media and entertainment sector transforming to digital as its new norm, companies need to harness new technology not only to deliver digital products and services, but to better understand and connect with their customers,” said Martin Lundie, Canadian media, technology and telecommunications leader at Ernst &Young.
He said digital leaders will be those that employ “advanced social listening programs, leading-edge analytics and cloud-based infrastructures” that facilitate rapid deployment of new products and resources.
The tools also enable decision-makes to “learn from, and fix, mistakes quickly,” said Lundie.
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The study found that businesses expect 57 per cent of their revenues to come from digital sources within the next two years. Digital sources are expected to account for 47 per cent of revenues in the sector for 2013.
The study found that businesses expect 57 per cent of their revenues to come from digital sources within the next two years. Digital sources are expected to account for 47 per cent of revenues in the sector for 2013.
The survey queried more than 550 executives from advertising, publishing, film, music, video games, cable and broadcast companies
Lundie said that decision-makers in media and entertainment companies report that creating a culture of innovation is a top priority for them.
“We are seeing these companies shift from ‘make-and-sell’ to ‘sense-and-respond’ business models,” he said. “As technology enables them to get closer to their customers than ever before, they need to be nimble to respond to the rapid shifts in customer demand.”