Amateur digital videos, podcasts, mobile phone photography, wikis and social-media blogs are one of the top three challenges they face today.
Consumer Generated Media (CGM) or User Generated Media – whatever you call it, it has entertainment execs worried.
According to a new Accenture study of senior executives in the media and entertainment industry in North America and Europe, more than half said the ability and eagerness of individuals to create their own content is one of the biggest threats to their business.
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.
Other key points of the study:
- 68% of the respondents said they believe that within three years their businesses will be making money on user-generated content
- 62% said they believe their companies will make money through advertising and sponsorships of social media
- 21% anticipate improved profits from subscriptions
- 18% expect profits from pay-per-play offerings
- 24% of respondents said they do not yet know how their businesses will profit from user-generated content.
The User-Generated Content – How About Just Content? report from InStat, which covers the worldwide market for User Generate content found that
- Worldwide revenue from UGC content will increase from $80 million in 2006 to $1.6 billion in 2011.
- Flash continues to be the output format of choice.
- As more UGC content is viewed on the TV rather than the computer monitor, the impetus to both submit and receive higher quality content will translate to much larger files being uploaded and downloaded.
Roger Faxon, chief executive of EMI Music Publishing said the music industry is moving "from a sales model to a consumer consumption model or participation model, where its economics are predicated on the use patterns of consumers as opposed to the purchase patterns…"
Perhaps it’s time your company took this view. But before you rush into social media, make sure you understand where your visitors and customers are on the social technographics ladder – see last post. A social media strategy is necessary to make this all work.
Photo courtesy of amanky
