Media business

2012

The largest media holdings in Russia and the CIS

The ratings of media holdings of the CIS at the end of 2012 (RBC). Three of the first in revenues:

• Gazprom Media
• Channel One
• Yandex

Expectations of revenue growth from digital technologies

On September 13, 2012, Ernst & Young: Heads of the companies of the world media sector and show business are optimistic rather future digital technologies, expecting that income of this sector will promptly grow as a percentage of the total revenues of the organizations. Results of new poll among heads of the companies demonstrate to it (Opportunity and optimism: How CEOs are embracing digital growth) Ernst & Young companies. About a half of the directors of the companies polled during the research consider that use of digital technologies will help them to increase revenue and profitability on extremely measure by 10% in the next three years.

The report is made on the basis of poll of 34 directors of the companies of the world media sector and show business which total revenue exceeds 300 billion US dollars a year. These companies have extensive geography and represent the different industries of media and entertainments, including television, the film industry, music, video games, services in the field of entertainments, cable channels, the Internet and interactive media, advertizing, publishing and also operators of cable and satellite television and multi-profile corporations.

Answering a question of technologies, standing behind two-digit digits of growth of the digital market, 79% heads of the companies called development of electronic tablets.

"Directors are configured very enthusiastically rather digital technologies and their role in the future of their companies, – John Nendik, the head of the international practice on rendering services to the companies of the media sector and show business of Ernst & Young company says. – "Optimistic expectations considerably increased in comparison with the situation observed a few years ago when leaders of this sector were much more reserved in the estimates concerning the potential of digital technologies. Almost all heads of the companies which participated in our research, understand that digital technologies, perhaps, are a key to growth of their revenue and profitability".

In the report the role of digital ecosystems which allow consumers to browse content is also analyzed and to share it by means of the different interconnected devices. Ecosystems open for users more opportunities searching, the choice and use of new content, and the company of the media sector and show business also services by packets within the general strategy focused on these independent digital ecosystems promote products.

"Autonomous digital ecosystems appear thanks to integration of media content, devices and media networks. The more users interact with content, the it is easier to learn about their preferences that contributes to the development of content, advertizing and services within these ecosystems", – Howard Bass, the senior partner on media and entertainments of Ernst & Young company notes.

Answering a question of three main driving forces of consumption of content in the next three years, directors of the company were unanimous in opinion – all 100% expressed confidence that a key factor of increase in demand for content are mobile devices, including tablets. Heads of the companies are especially optimistic rather emerging markets where the growing availability of mobile devices which is followed by development of infrastructure of broadband wireless access creates ample opportunities of growth for the companies of the media sector".

Listing the most difficult tasks facing the media sector and show business in the next three years most of heads of the companies agreed in opinion that the instability of the international economic situation and unwillingness of consumers cause to pay the greatest concern for digital content at fair value. Disappearance of intermediaries between their companies and end consumers, so – increase in number of direct contacts with the consumer, lack of clarity in an organization structure and governor gears and also need of reduction or redistribution of marketing budgets also belongs to these difficulties.

Among other interesting survey results:

• 84% of heads are sure that, in terms of business, the role of social networks comes down to establishment of customer interaction, and creation of the audience and brands take only the minor place.

• 76% of heads consider that software applications are only a part of a packet of the new or improved content and services and have no independent value.

• Heads of the companies still call development of the digital and on-line systems of distribution of content by the major priority (56%). Creative differentiation of content (44%) goes the following number in their list.

• The companies specializing in area of social and interactive media have more chances of successful growth in the future in comparison with other companies of the media sector and show business.

See Also

Advertizing (market of Russia)