16th Annual Global Ceo Survey Key Findings in The Entertainment and Media Industry

Dealing with disruption
16th Annual Global CEO Survey

Key findings in the Entertainment
and Media industry
www.pwc.com/ceosurvey
January 2013
PwC
Welcome
Far-reaching changes are taking place, and theyre taking place faster than ever. In this new era of stable instability, risks that once
seemed improbable and even remote have become the norm and for CEOs across the world, expect the unexpected has become
the mantra. The only solution is to build organisations that can thrive amidst disorder: organisations that are agile and adaptable,
able to cope with disruption and emerge stronger than before.

We polled 1,330 CEOs in 68 countries, and talked face-to-face with another 33 CEOs, in our 16th Annual Global CEO Survey, to
find out how theyre creating resilient organisations that can flourish under stress. Dealing with disruption shows that CEOs are
focusing on a few carefully selected initiatives to stimulate organic growth; explore new ways to attract and keep customers; and
balance efficiency with agility. And to succeed in these three goals, CEOs are recognising the role that trust plays, and that theyll
have to work hard to repair the bridges between business and society.

This report is a summary of our key findings in the Entertainment and Media (E&M) sector, based on interviews with 56 E&M
CEOs in 23 countries, as well as an in-depth interview with Peter Tortorici, CEO of GroupM Entertainment Global. To see the full
results of the 16th Annual Global Survey, please visit www.pwc.com/ceosurvey.
16th Annual Global CEO Survey: Key findings in the Entertainment and Media industry January 2013
2
PwC
Contents
Page
Introduction 4
The disruptive decade 6
What worries CEOs the most 9
How are CEOs responding?
Targeting pockets of opportunity 15
Concentrating on the customer 18
Improving operational effectiveness 21
3
January 2013 16th Annual Global CEO Survey Key findings in the Entertainment and Media industry
PwC
Introduction
4
PwC
Introduction

E&M CEOs are a lot like their peers across industries. They remain confident about revenue growth over the next three years
though theyre less confident this year and theyre worried about threats like Government responses to fiscal deficit and debt
burden, and volatile economic growth.

But there are some key differences too. For example, a lot more E&M CEOs see the shifting behaviour of consumers as a potential
problem 75% are concerned, compared to just 49% of the total sample. And 61% are concerned about the speed of technological
change, 19% above the global cross-industry total a reflection of the need for E&M companies to keep apace with consumers
rapidly evolving demands.

E&M CEOs arent just waiting for issues like these to disappear before changing how their companies do business. Theyre taking
action around pockets of opportunity, improving operational effectiveness and forging a new social contract.

Lets take a look at how.

5
PwC
The disruptive decade
80%
of E&M CEOs are confident about their
companys prospects for revenue growth
over the next three years
6
PwC
E&M CEOs remain confident over the next three years
E&M CEOs overall confidence in revenue growth over the next three years remains resilient with 80% feeling very or somewhat
confident, with a year-on-year dip in confidence over the coming year, from 84% to 70% reflecting a slight recalibration of
expectations of the time that a return of investment will take.

Q: How confident are you about your companys prospects for revenue growth over the next three years?

14
8
2
1
41
44
39
46
40% 20% 0% 20% 40% 60% 80% 100%
Entertainment and media
Total sample
Not very confident Not confident at all Somewhat confident Very confident
Base: All respondents (Total sample, 1330; E&M Sector, 56)
Source: PwC 16th Annual Global CEO Survey 2013
7
PwC
What worries E&M CEOs the most?
In an interconnected world you are
exposed to a greater number of
vulnerabilities and externalities. So,
whether disruptions occur as a result of
geopolitical, climate, or economic
conditions, the consequences can ripple
through the system and theres no place to
hide.
Peter Tortorici, CEO
GroupM Entertainment Global, US
8
PwC
Threats to growth are looming

Of E&M CEOs are concerned
about new market entrants
12% higher than the total
CEO sample
Of E&M CEOs cite
government responses to
fiscal deficit, debt burden as
a major threat to growth
Of E&M CEOs are concerned
about volatile or uncertain
economic growth
52%
75%
84%
9
PwC
Continuing focus on shifting consumer spending and behaviours

The impact of shifting consumer spending and behaviours on growth continues to be a key concern for E&M CEOs, with 75%
concerned or extremely concerned higher than almost any other industry. And 88% of E&M CEOs anticipate some or major
changes to their customer growth, retention or loyalty strategies, in response to this.
73% of E&M CEOs expect to increase their investments in technology over the coming year, while 61% are concerned about the
speed of technological change, 19% above the global cross-industry total showing that technology remains a key enabler for E&M
companies to keep apace with consumers rapidly evolving demands.

Q: How concerned, if at all, are you about:

35
35
52
40
39
58
62
49
42
37
34
27
30
30
52
52
57
73
75
61
55
59
0% 10% 20% 30% 40% 50% 60% 70% 80%
Security of supply chain
Inadequacy of basic infrastructure
Energy costs
New market entrants
Inability to finance growth
Availability of key skills
Increasing tax burden
Shift in consumer spending and behaviours
Speed of technological change
Lack of trust in your industry
Inability to protect Intellectual Property and customer data
Entertainment and media Total sample
Base: All respondents (Total sample, 1330; E&M, 56)
Note: Respondents who stated extremely or somewhat concerned.
10
PwC
So what are E&M CEOs doing?
11
January 2013 16th Annual Global CEO Survey Key findings in the Entertainment and Media industry
PwC
Targeting pockets of opportunity
52%
of E&M CEOs say growing their
customer base is their top investment
priority in the coming year
12
PwC
E&M CEOs much more focused on new product or service
development

38% of E&M CEOs see new product or service development as the key way to grow their business over the coming year, 13% above
the global average for all industry CEOs surveyed.

Q: Which one of these do you see as the main opportunity to grow your business over the next 12 months?

18 38 20 16 7 17 25 32 17 8
0
5
10
15
20
25
30
35
40
New M&A/joint
ventures and/or
strategic alliances
New product/service
development
Organic growth in
existing domestic
market
Organic growth in
existing foreign market
New operations in
foreign markets
13
PwC
Concentrating on the customer
If we want a relationship with the
consumer through media, we have to
deliver content to them thats relevant to
where they are and what they're doing at
any given time... We have to constantly be
considering the end user focus - what
theyre seeing, how theyre interacting
with the content, what it means to them,
and what reason do they have to come
back to it again?
14
PwC
The power of customers, clients and social media users
Customers, clients and social media users are influencing business strategy and E&M CEOs are responding by strengthening their
engagement programmes with these groups. 100% of E&M CEOs say customers and clients somewhat or significantly influence
their business strategy, with 93% strengthening their engagement programmes with this stakeholder group. 70% report users of
social media as being somewhat or significantly influential, with 95% of these CEOs strengthening their engagement programmes
to this stakeholder group 17% above the global cross-industry total.

Q: How much influence do the following groups have on your strategy?

70
34
29
50
18
38
9
30
11
0
23
27
22
25
39
34
48
39
32
12
5
38
48
23
41
21
41
29
55
88
80% 60% 40% 20% 0% 20% 40% 60% 80% 100%
Non Governmental Organisations (NGOs)
The media
Users of social media
Local communities
Providers of capital (e.g. Creditors and investors)
Your supply chain partners
Employees (including trade unions/ work councils)
Government and regulators
Industry competitors and peers
Customers and clients
Little or no influence Some influence Have significant influence
Base: All respondents (Entertainment & Media, 56)
15
PwC
Using social media to drive creativity at GroupM
16th Annual Global CEO Survey: Key findings in the Entertainment and Media industry
16
January 2013
We use social network data the way we use
research generally - as a guide to tell us
about whats working and what isnt
working. But then we take that data and use
it to help drive our creativity and our
imagination, which is the true source of
breakthrough content. In the end, you have
to be prepared to take risks.

PwC
Improving operational effectiveness
84%
of E&M CEOs anticipate changes to
their companys strategy over the
coming year
17
PwC
E&M CEOs are changing how they manage their organisations
Of E&M CEOs expect an
increase in technology
investments to keep apace
with customer demands
Of E&M CEOs anticipate
changes to their customer
growth/retention/loyalty
strategy over the coming
year
Of E&M CEOs expect
changes to their talent
management strategies
over the coming year
talent scarcity, employee
succession and retaining
talented employees remain
key priorities
73%
88%
18
88%

PwC
Cost reduction remains a key priority

77% of E&M CEOs have implemented a cost-reduction initiative over the past 12 months - and 70% expect to repeat this over the
coming year.
Q: Which, if any, of the following restructuring activities have you initiated in the past 12 months?
16
19
19
19
24
31
36
77
20
23
21
20
29
29
48
77
0% 10% 20% 30% 40% 50% 60% 70% 80%
Ended an existing strategic alliance or joint venture
Completed a cross-border M&A
Divested majority interest in a business or exited a significant
market
Insourced a previously outsourced business process or function
Completed a domestic M&A
Outsourced a business process or function
Entered into a new strategic alliance or joint venture
Implemented a cost-reduction initiative
.
19
PwC
Building innovation into the organisational culture
16th Annual Global CEO Survey: Key findings in the Entertainment and Media industry
20
January 2013
For me, the key word is reinvention. You
must constantly take what you have and find
new ways of assembling it, packaging, and
putting it back together to create greater
value... So, the most important characteristic
we look for in people is their ability to
embrace change.
Peter Tortorici, CEO,

PwC
For more information, please contact:
Or visit www.pwc.com/ceosurvey

Acknowledgements
PwC gratefully acknowledges the contribution to the 16th Annual Global CEO Survey: Key findings in the Entertainment and Media
industry provided by:
Download the main report, access the results and explore the CEO interviews from our 16th Annual Global CEO Survey online at
www.pwc.com/ceosurvey.

Marcel Fenez
Global and Asia Leader,
Entertainment and Media
Ken Sharkey
US Leader, Entertainment Media and
Communications

Phil Stokes
EMEA Leader, Entertainment and Media

T: +852 2289 2628
E: marcel.fenez@hk.pwc.com

T: + 1 (646) 471 5114
E: kenneth.j.sharkey@us.pwc.com

T: +44 (0)207 804 4072
E: phil.stokes@uk.pwc.com

21
This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this
publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this
publication, and, to the extent permitted by law, PwC does do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or
refraining to act, in reliance on the information contained in this publication or for any decision based on it.
2013 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for
further details.

121203-144542-EA-OS

16th Annual Global Ceo Survey Key Findings in The Entertainment and Media Industry

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

16th Annual Global Ceo Survey Key Findings in The Entertainment and Media Industry

Uploaded by

Copyright:

Available Formats

Dealing with disruption

16th Annual Global CEO Survey

You might also like