Ernst & Young showcases media and entertainment study, ‘Center Stage’

Ernst & Young has released a global media and entertainment survey, called ‘Center Stage’, which incorporates the views of 46 CFOs. It says that the CFOs in the media and entertainment sector are looking beyond the finance function to assist CEOs in strategic decision making

‘Center Stage’, the global media and entertainment study conducted by Ernst & Young, features more than 200 finance executives and incorporates the views of 46 CFOs and 140 online participants from media and entertainment companies around the world.

The study revealed that changing content and distribution models, as well as the advent of mobile entertainment means, is initiating huge changes in the entertainment industry. Almost 86 per cent of the participants said changing content and distribution models would impact the industry for the next two-three years.

The trend of ‘anytime, anywhere’ will prevail, says the study. The verdict from finance executives across the globe was that only those businesses that welcome and adopt the new distribution channels will emerge successful.

The report disclosed the roles played by finance executives in the media and entertainment space. According to the study, these roles could span across assisting the CEO in strategic decision making, including scenario analysis, customer product analysis, and investment optimisation in this segment.

It also cautions CFOs against the risks posed by the rapid changes in this industry, which makes it highly complex and unpredictable. The study points out that though there are risks, detailed analyses can help CFOs derive more value from investments and operations.

The study highlights and emphasises the power of the Internet as a medium: 77 per cent of the participants believed that Internet media providers were the most probable market winners. Content creation and electronic gaming were perceived to be the second and third most profitable business models.

What came as a surprise was that radio broadcasting and newspapers weren’t considered to be thriving business models.

This study is part of the long Ernst & Young series, which unearths strategic issues and trends concerning the media and entertainment industry worldwide.

© 2007 agencyfaqs!