In the first of a series of three 3i sector reports focusing on the transformation of the media industry in the digital age, influential business leaders from 3i’s global network and 3i’s media experts, share their views. Senior commentators include Richard Rosenblatt of 3i backed Demand Media, Jeffrey Revoy of Yahoo!, Jeff Henry of ITV, Heather Hopkins of Hitwise UK, Peter de Monnick of Reed Elsevier (Business).
According to PWC Global M&E Outlook 2007-2011, the global entertainment & media sector is forecast to be worth $2 trillion in five years time, growing at a compound annual growth rate of 6.4%. Around 50% of this growth is expected to originate online, with forecasts of 540m broadband Internet subscribers driving migration to digital formats and the rise of user generated social media having adverse impact on competing revenue streams and content fragmentation.
In the report, 3i and business leaders discuss the changing face of the sector in light of the rising influence of user generated content and social networking, the associated challenges and opportunities for traditional media firms and how industry players and advertisers need to adapt their approach and business models for success in the new digital age.
Issues covered in the report include:
• Future of the media sector: where will the next wave of growth come from? How will advertisers and income streams adapt to survive?
• Advertisers cannot ignore the growth of millions of prime audience (users of all ages) congregating online and avidly consuming and contributing text, pictures & film
• Democratisation of Content: Consumers are now creators and editors of content, challenging traditional media industry roles. As the lines blur, who are the experts and who stands to benefit?
• Increasingly creative approaches and deeper engagement with audiences is required for media giants to maintain their leading positions in the sector
3i has a 50-year track record in the media sector and a current investment portfolio worth more than €600m. 3i is a multistage investor, from venture capital to mid market buyouts and quoted private equity investments and in the last 5 years, has made more than 20 investments in the media sector worldwide.
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