Zinnov Media and Entertainment GSPR 2015

CIOReview Team | Friday, 30 December 2016, 12:48 IST

Zinnov, a leading Management consulting firm, today released the Global Service Providers landscape study focusing on the Media & Entertainment (M&E) vertical. The study titled “Global M&E Service Providers (GSPR) Landscape Study 2015” is a first-of-its-kind report that will enable business leaders in the Media & Entertainment industry to make right and informed decisions in partner selection across geographies for their digital journey.

According to the study, the overall Media & Entertainment (M&E) industry reached USD 1.4 Trillion in 2015 of which Broadcasting and Gaming companies accounted for 39% of the overall industry size, while New Media companies had the highest annual growth rate of approximately 15 %. The study brought to light that the overall M&E industry is fragmented with top 50 companies accounting for over 40% of the market. However, a detailed analysis revealed a split of consolidated and fragmented segments within the same, with Broadcasting being the most consolidated segment with Top 10 players comprising approximately 60% of the segment revenue, while Publishing being the most fragmented segment with Top 10 players comprising only 18% of the segment revenue.

Technology disruption is driving robust spend on PES and IT in the Media and Entertainment space. The addressable PES and IT globalization and services opportunity stands at
USD 60 billion and will reach USD 92 billion by 2020, it added. The current addressable market of PES and IT service is USD 6.5 Billion, of which around 60% of the outsourcing market is driven by North America based companies. APAC comprises 10-15% of the total Outsourced PES and IT Services market.

The total addressable market for PES and IT services stands at about USD 60 Billion of which 22% is constituted by broadcasting companies whereas New Media companies have the highest growth rate for the addressable outsourcing opportunities. The Zinnov study brought to light that the total addressable market for PES and IT globalization and services in the M&E space for 2015 stood at USD 60 Billion.

Talking about the study, Sidhant Rastogi, Partner & Practice Head, Zinnov, said, “North America continues to be the hot spot for M&E outsourced services market, accounting for more than 60% of outsourcing. Global media companies are looking at APAC and emerging markets for driving future growth and working with service providers to achieve faster time to market for their products. Additionally, Service Providers are also building end to end capabilities across the media value chain by acquiring niche digital companies or partnering with start-ups”.

“The Broadcasting industry is the largest outsourcer for Global Service Providers contributing 32% of the overall addressed services market. Increasing focus on digitization and insights-driven marketing are catalyzing a significant, data-enabled revolution within the M&E industry. The future of this industry is indeed centered on providing personalized experiences and monetizing digital content through use of analytics”, he added.

Highlighting some key trends, the Zinnov report read that media companies are building end-to-end capabilities through acquisitions or internal development to become end-to-end providers of digital services. This shift is transforming the media industry as key players are swiftly moving across various stages of the value chain. Consumers are becoming more fragmented and divergent as they are provided with choices. It also added that companies are experimenting with new frontiers of providing immersive experience to consumers to increase engagement and memory of content. Newer technologies are coming up which support such immersive and multi sensorial experiences. Organizations are betting on technologies like augmented/virtual reality, ultra-high definition and HDR content to engage with customers.

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