Two-thirds of consumers in India consider user-generated content to be as entertaining as traditional forms of media, according to a report by US multinational firm Accenture. The report also highlights that legacy media is rapidly losing customers.
The report titled ‘Reinvent for Growth’ is based on a survey of 6,000 consumers across Australia, Brazil, Canada, Germany, Italy, Japan, Spain, United Kingdom, United States, and India. Oxford Economics assisted in developing the survey, conducting fieldwork, analysing data, and extracting insights.
In response to the findings of the report, Accenture has introduced ‘Media Thrive Index’, which evaluates the influence of new strategies on media and entertainment firms. It delves into the firms’ ability to tackle challenges and measures how a new strategy will fuel their growth, primarily by evaluating potential financial growth and strategic impact.
Shift in consumer preferences
Findings show that 57% of consumers globally have increased their time spent on subscription video on demand (SVOD), while 26% indicated that the time spent on linear TV (excluding sports) has decreased since last year.
Consumers have increased their time spent on social media (52%), social video (52%), and video games (50%), spaces in which legacy media companies have little to no presence.
Around 65% of Indian consumers are cancelling and resubscribing to services based on the availability of desirable content. In 2023, 63% of Indian consumers cancelled more subscriptions compared to the previous year.
Majority (89%) of Indian consumers prefer using a single app to access all digital services, on both media and non-media categories.
More than 35% of Indian consumers face challenges in toggling between various entertainment services, apps, and devices, while 72% say recommended content does not match their interests.
“While the media industry is growing, the industry players are not. This essentially means that the value is shifting elsewhere. It is amply clear that incremental actions taken with a survivalist mentality will not help media companies thrive in the future,” said Neeraj Sharma, MD and Lead for Accenture’s Media Industry in Growth Markets, in a statement.
“For media companies, the need of the hour is to place big bets, go where consumers want to be while exploring new avenues of growth, redefining new roles in the entertainment value chain and tapping new sources of revenue,” he added.
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Media Thrive Index by Accenture
” align=”center”> Media Thrive Index by Accenture
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Radical moves needed for success
The report highlights how the shift in media consumption habits impacts company strategies. It also offers recommendations for brands in the media industry to adapt their models to stay updated with users.
Consumer spending through lifestyle bundles is expected to reach $3.5 trillion by 2030. Technology brands are better positioned than traditional media brands to curate them, says the report.
The Media Thrive Index evaluated 50 strategic options, drawn from a range of initiatives implemented by companies and internal analysis. The assessment found that the majority of these options represent modest adjustments, with no significant impact on the company’s economic profile.
Only radical moves offer a viable path for legacy media firms to gain a strong financial footing to achieve success in the coming years, says the report.
