Digital technology to drive profits for communication companies

by Andrew Roach on June 20, 2013

Mobile and digital technology have revolutionised the electronic world in the last few years with devices such as smartphones and tablets taking the world by storm.

But a new survey has revealed that most media firms will earn the majority of their revenue through electronic or digital products by 2015.

With many companies now resorting to the Internet and the web for a lot of their business, it has meant that a lot more sources of their income through digital resources rather than the more traditional methods of business.

Alongside using the internet to boost their potential audiences, the popularity of tablets and smartphones are booming in popularity and opened up even more options to appeal to users.

In the Ernst & Young survey, it was found that media and entertainment firms were likely to be earning nearly 57% of all their revenue from digital sources by 2015.

This is a staggering 10% rise from current levels where the levels are just below equal in comparison to traditional methods at 47%.

One of the biggest boosts in overall income has come from streaming services where users have much more flexibility in when they can watch their favourite shows rather than relying on when they air on television.

With these types of services now becoming available, it has also meant that customers have much more power than ever before. This was underlined by Ernst and Young media and entertainment analyst Martin Lundie who told The Globe & Mail that “the consumer is demanding what they want, where they want it and when they want it.”

These feelings are further underlined as customers have become much more difficult to please if a product breaks down or needs fixing. Most customers often something to be fixed instantaneously especially if it can be down by a flick of the switch and business has revealed that it can cause some unwanted tension on occasions.

But with companies now favouring a switch to using digital products, it means that the internet and mobile devices are now set to play integral roles in ensuring that businesses remain profitable and appeal to a mass market.

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Written by: Andrew Roach www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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