Global confidence growing in media and entertainment sector as focus shifts to digital
By Emma Crawford Hampel
For the first time since 2008, companies in the media and entertainment (M&E) industry are shifting their focus from cost-cutting measures to fostering growth as economic confidence, according to an EY study released August 11.
In a survey of chief financial officers (CFOs) across the world, EY found that the global recession is no longer a concern and that M&E companies are planning to focus on growth through digital opportunities and investments in digital talent. The survey found that 26% of the respondents felt that the global economy would present a challenge over the next three years; this is considerably lower than the 62% of respondents with similar sentiments two years ago.
“The CFOs told us in no uncertain terms that the economy is no longer an obstacle and now is the time for media and entertainment companies to invest in growth and focus on building their businesses,” said John Nendick, global media and entertainment leader for EY. “The industry is now poised to deliver on the promises it has been making the past several years but has been unable to achieve because of the economy.
“The CFOs recognize the recession is over and it’s showtime.”
The respondents felt that one of the biggest challenges in the near future would be persuading customers to pay fair value for content.
