User-Generated Content is Top Threat to Media and Entertainment Industry, Accenture Survey Finds

NEW YORK --(Business Wire)-- Apr. 16, 2007

Media and entertainment executives see the growing ability and eagerness of individuals to create their own content as one of the biggest threats to their business, according to results of a survey released today by Accenture (NYSE: ACN).

In its annual survey of senior executives in the media and entertainment industry, Accenture examined the growth strategies of companies across the landscape of advertising, film, music, publishing, radio, the Internet, videogames and television.

More than half (57 percent) of the respondents identified the rapid growth of user-generated content -- which includes amateur digital videos, podcasts, mobile phone photography, wikis and social-media blogs -- as one of the top three challenges they face today. In addition, more than two-thirds (70 percent) of respondents said they believe that social media, one of the largest segments of user-generated content, will continue to grow, compared with only 3 percent of respondents who said they view social media as a fad.

"This is just the beginning for a rapidly changing landscape where the media content environment grows more fractious and the user gains more control and power," said Gavin Mann, digital media lead for Accenture's Media & Entertainment practice. "Traditional, established content providers will have to adapt and develop new business and monetization models in order to keep revenue streams flowing. The key to success will be identifying new forms of content that can complement their traditional strengths."