An Ernst & Young study of almost 550 executives working in film, music, publishing, social networking and other forms of media suggests that an average of 47% of current revenue comes from their digital & online offerings. Over the next two years that is expected to rise to 57%, with digital purchases and advertising expected to surpass traditional ‘physical’ media revenue.

Respondents to the survey also predicted that mobile and cloud technology will becomes significant catalysts for further growth, with more than 8 out of 10 of participating executives optimistic about the financial potential of mobile devices alone.

The results also suggest that these media companies are investing resources and expanding their workforces to cope with the various challenges posed by a growing digital dominance, even if it means immediate loss for long-term gain as the field continues to evolve.

Of course, digital growth is uneven across the various media & entertainment sectors. Downloadable music sales surpassed physical sales in 2011 and 2012, while streaming services act as a growing revenue stream alongside full single & album purchases.

However, e-books remain a minority revenue source for publishers, while film and game distributors are still reliant on physical products alongside their ever-expanding online offerings.

Interpreting the results, John Nendick of Ernst & Young said "when you drill down into the data in advertising, in social media, in film and in broadcast and cable, you see that the digital transition isn't this thing of tomorrow to keep in the back of the mind, it's here." 

Discussing the potential of emerging technologies like cloud computing, Nendick points out "these are the locomotives of change and they're powering the drive to greater digital revenue because of what they offer in terms of scale and portability and personalization of content"