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Tag: John Nendick

  • Media companies’ digital revenues will overtake traditional by 2015: Ernst and Young

    Media companies’ digital revenues will overtake traditional by 2015: Ernst and Young

    MUMBAI: The average revenue of media and entertainment (M&E) companies will shortly cross the 50 per cent mark from majority traditional to majority digital, according to a new report, ‘Digital agility now! Creating a high-velocity media and entertainment organisation in the age of transformative technology‘, released by Ernst and Young. It has surveyed more than 550 senior executives from global M&E companies.

    Today, revenue from digital is 47 per cent and survey respondents say that by 2015 it will account for 57 per cent of revenue – thus making digital the new norm and the primary source of revenue for M&E companies.

        Over 550 senior executives from global media and entertainment companies see 57 per cent of their revenue coming from digital by 2015, up from 47 per cent today
        Organisational agility singled-out as a leading success factor in the digital era
        The study indicates that “digital leaders” have embraced smart mobile-social-cloud and big data analytics technologies to achieve agility

    The study goes on to identify the characteristics of M&E ‘digital leaders‘ – companies that are using new technology not only to deliver digital products and services, but to build more agile organisations capable of sensing and responding far faster to shifting customer expectations and marketplace opportunities and risks. The digital leaders are pioneering the path to a higher level of organisational agility as the M&E industry transitions to digital as its new norm.

    Ernst and Young global technology industry leader Pat Hyek said, “Mobile-social-cloud and big data analytics technologies are game-changers for M&E firms. These technologies can help M&E digital leaders who broke ahead of the pack in the early stages of digital to extend their advantages, as well as offer opportunities for those who fell behind to adapt quickly and catch up.”

    According to the report a major differentiator between these digital leaders and other survey respondents is a greater emphasis on mobile-social-cloud and big data analytics technologies for internal collaboration. For example, digital leaders are 60 per cent more likely than all other respondents to emphasise the importance of social media for internal communication among employees: 67 per cent said it was ‘very‘ or ‘extremely‘ important, versus 42 per cent of all others. The study points to the kind of rapid collaboration that is enabled by social networks and characteristic of an agile organisation, where silos are broken down by the ready flow of information.

    The study shows that digital leaders‘ advanced social listening programmes, leading-edge analytics and cloud-based infrastructure enable rapid deployment of new products and resources, and give companies the ability to quickly learn from and fix mistakes. This organisational agility is necessary to meet the demands of rapidly evolving digital consumer behavior.

    Ernst and Young Global Media and Entertainment Leader John Nendick said, “Media and entertainment companies no longer live in a world where everything lives in ‘their‘ world. It‘s a connected eco-system with consumer technology leading the way”.

    Other results from the survey include:

        Technology alliances: Digital leaders emphasise alliances that let them act faster than “going it alone”; 51 per cent rank alliances with technology and other M&E partners among their top three strategic priorities for digital transformation, versus 30 per cent for others.

        Second-generation deployments: Digital leaders were generally more than twice as likely to incorporate lessons learned from initial technology deployments to achieve more advanced functionality. For example, 49 per cent of digital leaders use second-generation mobile technologies to develop products/services versus 16 per cent of all others.

        Smart mobility: Similarly, 32 per cent of digital leaders use second-generation or later techniques in mobility to enhance employee engagement and communication, versus 13 per cent of all others.

        Cloud: Digital leaders emphasise the importance of cloud computing to enhance internal and customer-facing flexibility. For example, 74 per cent of digital leaders say it‘s important to host business tools in the cloud, versus 49 per cent of all others; and 43 per cent of digital leaders use second-generation cloud solutions to speed product/service development vs 12 per cent of all others.

        Big data analytics: Digital leaders are three times more likely than other respondents to use second-generation big data analytics techniques to improve customer engagement (26 per cent versus nine per cent). Among all respondents, 66 per cent rely on in-house resources to get insight into customers yet 41 per cent say they gain no insight from their data, suggesting they don‘t have the right big data analytics tools or skills in place and may be better off partnering to access external resources.

    Agility Index:

    The report concludes with an agility index that ranks the relative organisational agility of different M&E segments as well as enabling technology and digital leaders. The average score of all respondents is indexed to 100. A score of 110 denotes performance 10 per cent above average; 90 is 10 per cent below average.

  • CFOs to play bigger role in media and entertainment business: E&Y

    MUMBAI: Media and entertainment companies are redifining the role of their finance executives in the changing landscape of convergence and competition, according to a report by Ernst & Young.

    “As companies scale up, the chief financial officer’s role is becoming increasingly critical both in capital raising for growth and management of risks,” the survey said.
    Driving this change are the advances in mobile technologies and increasing public expectations as on-demand content gains in the marketplace. The key agents for change in the industry are changing content and distribution models as well as mobile entertainment devices.

    The survey, “Center Stage: CFOs and Finance Executives In The Spotlight Of An Industry In Transition,” was released in Mumbai today by Ernst & Young global head – media & entertainment practice John Nendick. The interview covered over 200 finance executives including views of 46 CFOs (six from India) and 140 online participants from major media and entertainment (M&E) companies across the world.

    Says John Nendick, “We are delighted to release this global survey in Mumbai, which is home to one of the most vibrant and fastest-growing M&E markets in the world today. Several Indian M&E players are in the midst of rapid transition, brought on by a booming consumer base and the twin forces of convergence and competition.”

    Finance executives are playing a larger role in the media and entertainment industry, which includes moving beyond handling the plain vanilla finance function to assisting the CEO in strategic decision-making, including scenario analysis, customer product analysis and investment optimisation.

    “Maintaining a risk-reward balance, rapid changes in the M&E industry have made it more complex and unpredictable. While this has brought many opportunities, there are risks that also have to be considered. This has placed the CFO function in a critical position. CFOs in the M&E space have to analyse how enterprise can derive more value from existing investments and operations,” the study points out.

    CFOs play a key role in mergers and acquisitions activity, starting from assessment, evaluation and integration. This includes post merger performance tracking of an acquired entity against original investment criteria.

    CFOs interviewed in the study also feel that they are prone to missing out on opportunities to reduce taxes. According to the study, 76 per cent of the CFOs believe tax planning should be a key priority for executives.

    Anytime Anywhere Entertainment

    Changing content and distribution models will have a severe impact on the industry over the next two to three years, 86 per cent of participants felt.

    Adoption of personal entertainment and communication devices (MP3 players, mobile telephones etc.) will have the greatest impact, according to 79 per cent of the participants. Expanding global universe of mobile wireless subscribers ensures that the ‘anytime, anywhere’ entertainment will continue.

    According to the study, finance executives of global M&E companies believe that the businesses that will emerge as winners are those that welcome the new distribution channels and are capable of identifying the right content for the specific delivery vehicle.

    The Future is Internet

    To the question of business models for media and entertainment companies most likely to thrive in future, 77 per cent of the study participants consider Internet media providers as the most likely market winners, whereas only 24 per cent view cable operators as thriving businesses in the future. New (independent or cable channel) content creation and electronic gaming are rated as second and third business models in a best position to thrive.

    Radio broadcasting, newspapers and periodical publishing are not thriving business models, CFOs and finance heads of global M&E companies said. Whiler only 11 per cent favoured radio, 13 per cent were keen on publishing businesses as best positioned to thrive in next two to three years.

    The survey is a continuation of Ernst & Young’s series of studies exploring strategic issues and trends transforming the media and entertainment industry worldwide.

  • CII to organise a Big Picture conference at intl film festival in Goa

    CII to organise a Big Picture conference at intl film festival in Goa

    MUMBAI: On the occasion of the International Film Festival of India (IFFI) in Goa which kicks off later this month the Confederation of Indian Industries (CII) will organise a conference Big Picture from 22-23 November 2006.

    The conference is dedicated to the changing face of Indian cinema and envisions to provide direction for catalysing growth of the Indian film entertainment space. Focussed on the content and financing aspects of the film business with individual sessions on film marketing, communication, co-production and new technologies, the CII endeavours to open new vistas through a series of keynotes, panel discussions and case studies, presenting growth opportunities and strategies to overcome challenges facing the Indian film industry. The conference provides an opportunity to network with the key executives from different organisations.

    The speakers include Silicon Image, USA president and CEO Steve Tirado, E&Y global media and entertainment head John Nendick,
    Kuwait National Cinema Co head Hisham Alghanim, Motion Pictures Association senior VP and regional director – Asia Pacific region Mike Ellis.

    There will be knowledge sessions on home entertainment, financing, mobile entertainment revenues, digital technology and co productions. There is so much talk about the emerging mobile entertainment in the small screen. Where are we headed and what’s the opportunity in this space? That is one of the questions this seminar will tackle.

    Around 180 movies will be screened over 11 days of the festival. The films that will be shown include the critically acclaimed Babel with Brad Pitt and Cate Blanchett that could get a Best Picture Oscar nomination next year. It closes the festival. Volver from Spanish maestro Pedro Almodovar is the opening film of IFFI 2006. The country focus
    this year at IFFI will be Argentina. A retrospective of Spanish film actor Javier Bardem will also be part of the action.

    The majority of the Indian Panorama movies are available for overseas distribution and theatrical rights. Visitors can can meet the right holders at the Film Bazaar, The Indian Panorama section would feature 20 films, including Madhur Bhandarkar’s Corporate, Girish Kasaravalli’s Kannada film Nayi Neralu, K. Satyanarayan’s Telugu film Hope, Madhu Kaithapuram’s Malayalam film Ekantham and Cheran’s Dhavmai Dhavamirrunthu.

    In the cinema of the world section films that will be screened will include the American comedy Borat
    Cultural learnings of America for make benefit glorious nation of Kazakhs. Then there is the Italian film Le Caimanby from Nanni Moretti. The film tackles Italian politics and love as seen through the eyes of a failing film producer. From France there is Little Jerusalem by Kairn Albou The story focuses on sisters Laura (a philosophy student falling in love with an exiled Algerian Muslim) and Matilde (a devout mother of four torn by her husband’s infidelities).

    Following her characters from ancient religious rituals to contemporary situations, Albou vividly brings to life the challenges made to religious faith by secular society.

    This year the festival will feature a special retrospective of Prithviraj Kapoor’s films, and a special screening of Richard Attenborough’s oscar winner Gandhi will also be held to mark the centenary of Satyagraha movement launched by Mahatma Gandhi.

    Goa Chief Minister Shri Pratapsing Rane said, ‘Goa is slated to be India’s next entertainment super-hub and IFFI 2006 is spearheading its growing recognition as an International cinema destination. This year IFFI 2006 synergises global participation, high profile glamour, world-class entertainment and internationally applauded films. Add to that a beautiful locale and the frills and fancies that come with a red carpet event and you have the perfect concoction of fun, glitz and quality entertainment’.

    Entertainment Society of Goa (ESG) CEO Nandini Paliwal says, ‘IFFI 2006 will offer the best of world cinema. With acclaimed films from across the globe, the festival represents a kaleidoscope of cultures and creates a medium to appreciate and share cinematic excellence. In fact, ESG is in the process of making a yearly event calendar encouraging associated ventures with international brands in the field of cinema and will work towards making Goa the entertainment heart of the country”.