Digital growth is top priority for media CFOs: study

A global Ernst & Young report finds most financial chiefs are shifting focus away from cost-cutting and are now intent on building out web distribution to survive and prosper.
August 12, 2014

Go digital.

That’s the word from 50 media and entertainment company CFOs surveyed by Ernst & Young.

The report, It’s Showtime! Digital drives the agenda, data delivers the insights, found financial chiefs were steadily moving from cost-cutting to growing their companies with digital deal-making.

In all, 74% of CFOs surveyed said their top priority is growing their digital and online distribution.

That was followed by 35% of respondents pointing to cost reduction and business efficiencies as a priority.

Creatively differentiating content, extending brands globally and growing new market segments also figured in the CFOs’ wish-list

Most CFOs cited a growing economy as grounds for new investment, but they also identified industry obstacles during the next three years from technology and platform disintermediation (64%), and being unable to get consumers to pay fair value for content (58%).

Still others identified structural and regulatory uncertainty (42%), and reductions/reallocations of marketing budgets (26%) as still more future challenges.

At the same time, the increasing use of data analytics to improve decision-making and processes is also encouraging a pivot to growth.

Most CFOs (72%) said upstart interactive media companies were best placed to prosper in the new entertainment space, followed by vertically integrated cable TV networks and channels (42%), conglomerates (36%), film and TV producers (30%) and content and information services companies (30%).

The survey was conducted among 50 CFOs of global media and entertainment companies across 10 countries, representing almost half a trillion dollars in media and entertainment revenue.

From Playback Daily

Image courtesy of Shutterstock 

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