Media industry execs express strong sense of optimism for opportunities with disruptive technologies: KPMG International

Media industry execs express strong sense of optimism

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Of the 580 senior media sector executives responding to a new commissioned KPMG International survey conducted by Forrester Consulting, 60 percent say disruptive technologies are having a positive impact on their company with 62 percent of this group reporting they are using disruptive technologies to reshape their business models.

According to Peter Mercieca, Global Chair, Media and Telecommunications, KPMG International:

“Disruptive technologies can act as a driver of change, breaking down old processes and ways of doing things. Its effects, however, are pervasive, requiring business to invest differently, plan differently, let go of old assumptions and habits, act boldly and adapt. Indeed, in order to create sustainable new revenue opportunities for their companies, media leaders need to be early movers or fast followers.”

Accordingly, of those media executives who say disruptive technologies are having a positive impact on their organization’s performance, just over half (51 percent) attribute that success to the fact that ‘we saw the new technology trend earlier than others’, while more than a third (39 percent) say ‘we invested in disruptive technologies at an early stage’.

The KPMG International survey reports that marketing platforms (80 percent), data and analytics (D&A) (80 percent), mobile devices/applications (79 percent) and digital payments/currency (79 percent) are having the most impact on the way media companies are running their operations.

When it comes to driving productivity, respondents say the internet of things (50 percent), robotics (49 percent) and digital payments/currency (47 percent) are helping them to be more productive.

Respondents also say artificial intelligence/cognitive computing (46 percent) and 3D printing (45 percent) are helping them to improve quality. Further, they report that D&A (42 percent) and the internet of things (41 percent) are allowing them to reduce personnel costs.

The top technology areas that respondents say are changing how they serve their customers include marketing platforms (79 percent), social media (78 percent) and mobile devices/applications (78 percent). Respondents also say on-demand marketplace platforms (42 percent), digital payments/currency (41 percent) and artificial intelligence/cognitive computing (40 percent) are helping them to monetize their products or services differently. And they further add that the internet of things (46 percent) and D&A (42 percent) are playing key roles in allowing them to market to their customers more effectively.

Interestingly, the survey shows that all 13 technologies presented to respondents are having a notable impact on the way media companies are serving customers and running their business operations. Even the lowest-ranking technology – robotics – was cited by more than 6 out or 10 of those surveyed: 62 percent reported that robotics is having a “moderate” to “significant” impact on business operations and 65 percent on their approach to serving customers. While there is a strong sense of optimism about the opportunities presented by disruptive technologies this doesn’t translate into operational preparedness.

According to David Elms Head of Media, KPMG in the UK:

“It appears from these findings that decision-makers at media companies realize that disruptive technologies are a business imperative, but many are finding it difficult to pinpoint exactly which represent the biggest or most important opportunities or threats to their companies. Based on the survey results, we see some real opportunities for media companies to use many of the disruptive technologies to become more efficient businesses, whether that means changing the front office or the back office and probably both. However, the harsh reality is that, overtime, the threats will outnumber the opportunities for those that fail to take action.”

KPMG Disruptive Technology Map

So how should media industry leaders go about benchmarking themselves against their peers in order to better prioritize the disruptive technologies they should be embracing or pursuing? Building on the data and insights from our study, KPMG’s TMT practice evaluated the 13 measured disruptive technologies using the following metrics: impact on operations, impact on business models and level of investment.

We then combined these three metrics into a KPMG framework, which we call the Disruptive Technology Value Map, and can help guide media industry leaders’ investment decisions around disruptive technologies.

Please visit Disruptive technologies barometer – Media sector to access the full reports.

About KPMG International’s “A call to action | Disruptive technologies barometer – Media sector”

This report is based on a commissioned global survey conducted by Forrester Consulting on behalf of KPMG International’s Global Technology, Media and Telecommunications practice.

580 senior executives within media companies from 16 countries were surveyed. The respondents represent advertising, online, magazines, newspapers, broadcast, video, radio, social media content providers, cable TV and broadcasting, or similar.

The 16 countries include: Australia, Brazil, Canada, China, France, Germany, India, Israel, Japan, Portugal, South Korea, South Africa, Spain, Taiwan, the UK and the US.

This survey is part of a wider body of research into the technology, media and telecommunications industries, involving 1740 senior executives (580 from each sector). The technology report was released in November 2016 and the telecommunications report on 7 December 2016.

Please visit Disruptive technologies barometer – Media sector to access the full reports.

About KPMG International

KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 152 countries and have 189,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

For more information, please contact:

Carolyn Forest

KPMG International

+1 416 777 3857

cforest@kpmg.ca

The views and opinions expressed herein are the personal opinions of the interviewees and authors based on their personal experience working as Auditors in the industry and do not necessarily represent the views or opinions of KPMG International or any KPMG member firm.

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