Fifty-seven percent of senior executives in the media and entertainment industry point to the rapid growth of user-generated content as one of the top three challenges they face today, according to the results of a research study released in April by Accenture. Accenture's definition of user-generated content, for the purpose of this study, included amateur digital videos, podcasts, mobile phone photography, wikis, and social media blogs.
In addition, more than two-thirds (70 percent) of
respondents said they believe that social media, one of the largest
segments of user-generated content, will continue to grow, compared
with only 3 percent of respondents who said they view social media as a
While those surveyed expressed concern about user-generated content, they are less apprehensive about the future. According to the research, 68% of respondents believe that within three years their businesses will be making money on user-generated content, and 62% believe their companies will make money through advertising and sponsorships of social media. Other sources of profits cited were subscriptions (21 percent) and pay-per-play offerings (18 percent). However, a quarter (24 percent) of respondents said they do not yet know how their businesses will profit from user-generated content
The research also shows that 70% of respondents believe social media will continue to thrive, while only 3% say it is a fad. When asked which content type has the highest growth potential over the next five years, 53% named short-form video, 13% videogames, 11% full-length films, 11% music, 9% consumer publishing, and 4% business publishing.
I'll let Sir Martin Sorrell, CEO from WPP have the last word here:
"Technological change and the consolidation of digital and non-digital business models will have a dramatic impact on the media and entertainment industry over the next five years. The winners will be those who can probe and analyze the changes and manage and merge on-line and the off-line most successfully."