Digitisation key to media & entertainment: Ernst & Young

MUMBAI: Digitisation is the single most important technology trend that is continuing to reshape the media and entertainment landscape in the more developed markets of Europe and the US, according to the consulting firm Ernst & Young.

Digital cable and satellite, digital video recorders (DVRs), online content distribution and the mainstreaming of electronic games are likely to impact companies working in old world models.

"The cable and satellite story is powerful, but other sectors will thrive as well," remarks the Ernst & Young report on "Fast Forward: Technology propels media and entertainment CEOs into the Future" .

Cable companies have high earnings before interest, taxes, depreciation and amortisation (EBITDA) and are growing twice as fast. Broadcast TV, radio and margin operate on margins hovering around 40 per cent, while the other sectors bunch up between 8-15 per cent.

Technology will put the industry on fast forward, the report said. DVR will be the only technology that will have the maximum impact on the future of media and entertainment over the next few years. Balsara pointed out that studies have shown that DVRs are going to slow down and even bleed the broadcast TV industry. DVRs resulted in the TV industry letting go of 1.7 per cent of advertising revenue in 2003. That is going to balloon to a fat 12.5 per cent by 2007.

Ernst & Young interviewed 23 global media and entertainment CEOs, CFOs and leading financial stakeholders for compiling the report. The companies that participated in this global study accounted for combined annual revenues of $214 billion (FY03).

Presenting the report on Tuesday, Ernst & Young head of media and entertainment practice Farokh Balsara said broadband Internet access and online advertising would become a key source for entertainment advertising.

Ernst & Young had invited CEOs and senior executives of Indian companies to a function where the report was presented. AP Parigi was the chief guest, while Ernst & Young's John Harley and CEO Anil Wanvari were among those who spoke on the occasion.

And industry turned up in large numbers: Sony Picture's Uday Singh, NDTV's Raj Nayak, Media Turf's V. Ramani, Lodestar Media's Nandini Dias, Hansa Consulting's Pravin Tripathi, Triton Communications' Ali Merchant, TAM India's Atul Phadnis, Aaj Tak's Nikita Tulsian, Lemon's Ravi Deshpande were amongst the ones who graced the evening.

Latest Reads
Prepare for three months of fireworks as COLORS SUPER premieres Bigg Boss Kannada – Season 6

Television viewing has never been the same, since the introduction of reality programming kingpin

Television TV Channels Regional
Star Bharat brings Kaal Bhairav Rahasya 2 with a new mystery

India has had age old history associated with myths legends folklore and one of the biggest myth has been that of the curses.

Television TV Channels GECs
Industry Honchos Uday Kotak, Rajnish Kumar and Kalpana Morparia come together to identify the winners of IBLA 2019

CNBC-TV18’s most-awaited marquee property, The India Business Leaders Awards will be conducting a jury meet along with an informative and insightful panel discussion on Today at Trident BKC, Mumbai, 2:30 pm.

Television TV Channels News Broadcasting
News18 India Unveils Two New Shows- “Ye Desh Hai Humara” and “Akhada”

Ahead of the upcoming assembly elections in 5 states including MP & Rajasthan and general elections next year

Television TV Channels News Broadcasting
Zee Telugu Announces World Television Premiere of Allu Arjun starrer Naa Peru Surya

Filling this weekend with patriotism, action and drama, Zee Telugu is here with a world television premiere movie of a young man discovering himself while finding the right balance between serving his country and overcoming the hurdles thrown at him due to the power struggles in place.

Television TV Channels Regional
BTVI endeavors to increase financial literacy across India through Money Mantra

Business Television India (BTVI), India’s Premier English Business News Channel, introduces a multicity initiative - Money Mantra which is an effort to expand the financial awareness and literacy by bringing together, personal financial experts and mutual fund experts close to the common man and...

Television TV Channels News Broadcasting
Rural markets drive Hindi GEC FTA channels

Hindi GECs or general entertainment channels draw some of the largest eyeballs across India. “My aim is to get that extra tear from the housewife’s eyes during primetime. I want to keep her riveted to my programmes, to my channel,” the head of a cluster of channels in South India once said.

Television TV Channels Viewership
Sony Marathi banks on fiction to be market leader

Regional is the hot new space for broadcasters and they have taken big bets on vernacular languages to garner higher ratings. Sony Pictures Network India (SPNI), which already has its presence in the Bengali space, saw the potential in Marathi market and made a move to launch its channel on 19...

Television TV Channels Regional
Zee Media gets permission for 4 regional news channels

After a long tenure of being strict in awarding channel licenses, the Ministry of Information and Broadcasting (MIB) has finally become lenient. In the month of September, eight new channels received licenses while none saw their licenses cancelled as on 30 September 2018.

Television TV Channels News Broadcasting

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories