Study: Consumers tired of browsing
April 15, 2024
Professional services company Accenture has launched its Media Thrive Index to assess the impact of reinvention strategies on media and entertainment companies’ ability to succeed financially and strategically in an increasingly challenging industry.
The Media Thrive Index is a response to the findings of Accenture’s third annual Reinvent for Growth global entertainment study, which surveyed 6,000 consumers across 10 countries about their media consumption behaviours. The study highlighted a complex landscape of challenges facing traditional media companies in which marginal strategies won’t restore them to economic or strategic health.
“Media companies need to get radical and get outside of their comfort zone,” said John Peters, a managing director in Accenture’s Media & Entertainment industry practice. “It is necessary to be bold, whether it means overhauling traditional revenue streams, targeting new audiences, redefining roles within the media value chain or competing in new industries altogether.”
The Media Thrive Index assessed 50 different strategic options for reinvention, identified from a range of initiatives launched by companies and from Accenture’s own strategic analysis. The assessment found most options so far are modest adjustments, which do not substantially alter a company’s economic profile. Only radical moves show a path for legacy media companies to secure the sound financial footing needed to thrive and
Key findings:
Tired of Browsing – More than a third of consumers (36 per cent) say they struggle to find something entertaining to watch while 52 per cent say recommended content does not match their interests.
Serial Churners – Nearly 60 per cent of consumers are cancelling and resubscribing to services based on the availability of desirable content. In 2023, 47 per cent of consumers cancelled more subscriptions than the previous year.
Shifting Preferences – Two-thirds of consumers consider user-generated content to be as entertaining as traditional forms of media. In all scenarios presented to consumers, such as “when I want something funny” or “when I want to relax,” social media and social video platforms were consistently picked over streaming video services as the media of choice.
The study also found opportunities for media organisations to expand beyond traditional content offerings, including aggregation platforms and lifestyle bundles. A majority (83 per cent) of consumers said they would be inclined to use a single app to access all their digital services across both media and non-media categories. Additionally, Accenture projects lifestyle bundles to reach $3.5 trillion in consumer spending by 2030 with technology brands better positioned over traditional media brands to be the creators of these bundles.