- Digital: the rapid and accelerating digitization of elements including content, business processes, and product innovation. Social media, mobility and the explosion of apps have already had profound impacts which will continue to grow.
- Demand: Consumers are empowered, connected, able to influence large communities of people, and ready to play an increasingly collaborative role in developing new E&M products and services.
- Data: the proliferation of digitized content, web access and social media means companies have the ability to mine and analyze detailed/contextual information which hasn't previously been available. Data is key to the interface between consumers, content experience and brand as well as to innovation.
"The year 2011 has experienced a surge in collaborative partnering spurring the transformation of the E&M industry over the next five years into a digital collaborative ecosystem. This model is expected to emerge as the template of success and by 2015, most E&M companies and the vast majority of the winners will have digital collaboration infused into their DNA. The real question, then, is how quickly it comes about," added Sharkey.
US segment highlights
In the US, Internet access and Internet advertising is expected to continue to outperform the other E&M segments, with 7.8 percent and 12.2 percent CAGR, respectively. TV subscriptions (5.6 percent CAGR), filmed entertainment (5.4 percent CAGR), and out-of-home advertising (5.4 percent CAGR) are set to grow more than 5 percent compounded annually. TV advertising (4.9 percent CAGR), video games (4.6 percent CAGR), business-to-business publishing (4.1 percent CAGR), consumer magazine publishing (3.5 percent CAGR), radio (3.5 percent CAGR) and consumer and educational book publishing (2.1 percent CAGR) are expected to generate modest growth. Spending on recorded music (-0.4 percent CAGR) and newspaper publishing (-0.4 percent CAGR), and are expected to each be lower in 2015 than in 2010. Overall, US consumer/end-user spending is expected to grow by 4.3 percent CAGR.