UK media owners must embrace reform

11 October 2010

LONDON: Media owners in the UK must embrace wide-ranging reforms to guarantee their long-term future, a report has suggested.

PricewaterhouseCoopers, the consultancy, stated that the number of sector insolvencies has fallen significantly in recent months.

However, it also warned continuing survival depends, firstly, on meeting the demand for high-quality content, made available seamlessly across a variety of devices.

The company further suggested consumers are likely to pay for personalised material, and anticipated a payment-by-results philosophy will oblige advertisers and content producers to work together.

PwC's study, entitled "Phoenix from the Flames: the future of media organisations", equally forecast that financial models leveraging subscriptions, ads, product placement and micropayments would emerge.

Elsewhere, it pointed to technological developments including real-time customer data, greater server capacity and storage as the fourth key driver of the market.

The final prediction was that mobile TV, supported by advertising, will "happen on a mass scale, with back-channel access via wi-fi for home-based services remaining more important than 3G."

David Lancefield, a partner at PwC, said: "Complex and often conflicting forces are reshaping media consumption habits - such as the ageing population, the rise in single person households and increasing urbanisation."

"Today's media executives [must] deliver a new operating model that is equipped to generate revenues in a constantly changing consumer environment."

Data sourced from PwC; additional content by Warc staff