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May 5
Media Executives Say Ad-supported Content Will Dominate Digital Landscape

A survey from Accenture (NYSE:ACN) called "2008 Global Media Content Survey," found that 52 percent of executives in the media industry from Brazil, North America and Europe, say content supported by advertising will continue to lead the way over the next five years.

They added that digital advertising will surpass traditional advertising during that same time period.

For advertising-based models, when asked to project out where things will be in five years, percentages went up to 62 percent of respondents believing that's where things will end up.

Other models like subscriptions and pay-per-play services didn't fare as well, with 25 percent saying subscriptions would lead the way, and only 11 percent saying pay-per-play would.

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I don't disagree with the findings, but there is an obvious caveat that must be included: it depends on what industry you're talking about. For example, gaming will be dominated by subscriptions, although there could be growth in the area of product placement as well.

Music will continue to be pay-per-play, although in that space some people prefer subscriptions.

But for general and niche content, ad support will be the predominate way to build a media business. The best companies will incorporate all three of these major components to be highly successful.


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