Accenture has today published its Media Thrive Index, with findings suggesting that media and entertainment companies need to embrace radical reinvention to unlock growth in a rapidly evolving environment.

The research reveals changing attitudes and habits of Australian media consumers, including content discovery frustration, the rise of serial churners, and shifting preferences towards user-generated content.

It comes in response to the findings of Accenture’s third annual “Reinvent for Growth” global entertainment study, which surveyed 6,000 consumers across 10 countries about their media consumption behaviors. The study highlighted a complex landscape of challenges facing traditional media companies in which marginal strategies won’t restore them to economic or strategic health.

According to the latest study, 32% of Australians struggle to find something entertaining to watch while 55% say recommended content does not match their interests.

Comfortable with cancelling and resubscribing, 63% of Australians base their decisions on content availability. In 2023, 46% of consumers cancelled more subscriptions than the previous year.

60% of Australian consumers consider user-generated content to be as entertaining as traditional forms of media. Social media and social video platforms were consistently picked over streaming video services as the media of choice.

The report suggests that media companies need to overhaul traditional revenue streams, target new audiences, redefine roles within the media value chain and/or compete in new industries altogether. The Media Thrive Index assessed 50 different strategic options for reinvention, most of which were found to be modest adjustments that do not substantially alter a company’s economic profile. Only radical moves show a path for legacy media companies to secure the sound financial footing needed to thrive and sustain success.

The study also found opportunities for media organisations to expand beyond traditional content offerings, including aggregation platforms and lifestyle bundles. 83% of consumers said they would be inclined to use a single app to access all their digital services across both media and non-media categories.

Managing director in Accenture’s Media & Entertainment industry practice, John Peters, said: “Media companies need to get radical and get outside of their comfort zone. It is necessary to be bold, whether it means overhauling traditional revenue streams, targeting new audiences, redefining roles within the media value chain or competing in new industries altogether.”

Accenture projects lifestyle bundles to reach $3.5 trillion in consumer spending by 2030 with technology brands better positioned over traditional media brands to be the creators of these bundles.