New content, distribution models to impact media & entertainment

Mumbai, Jan 22 | Updated: Jan 23 2007, 05:56am hrs
Changing content and distribution models will have the greatest impact on the media and entertainment industry over the next two years, says a new report by Ernst & Young (E&Y) on the global media and entertainment sector. The second most important trend will be adoption of personal entertainment and communication devices, according to the report. The study says that globally, Internet media providers will be the market winners and second contenders will be content creation and electronic gaming. Ironically, the trend for print and radio medium is entirely different for India and other developed nations.

While global companies do not consider radio broadcasting and newspapers and periodical publishing as thriving business models, in India print and radio medium will witness robust growth, said Farokh Balsara, national sector leader, entertainment, E&Y.

The survey was conducted amongst 46 chief financial officers (CFOs) including six CFOs from India. According to the report, along with many opportunities, media and entertainment industry is also flooded with various risks. Therefore, the CFO has an important function to play. CFOs should be involved in the strategic part of the business too, according to the report. In India however, CFOs are still not involved in the strategic part of the business. The CFOs interviewed during the survey said that they play a key role in mergers and acquisitions and they opined that tax planning should be a key priority for executives.