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Media

Film
The biggest!
TV
The most powerful!
Music
The sexiest!
Publishing
The most cultivated!
Radio
"a modest kind of literature for the blind"
Google
"The mind of the world"

New Media

New media are media that result from the convergence of information and communication technology.
According to the book by Martin Lister, Jon Dovey, Seth Giddings, Iain Grant, Kieran Kelly, "New Media: a critical introduction", the term new media refer to the following:

New textual experiences, new kinds of genres (weblogs), patterns of media consumption (hypertext)
Computer-mediated communications: email, chat rooms, SMS (mobile telephony)
New ways of distributing and consuming media texts characterized by interactivity and hypertext formats - the world wide web, CD-ROM, DVD, and the various platforms for computer games
Virtual Reality: Fully immersive representational spaces

Key new media terms:

Interactivity, hypertextuality, dispersal, and virtuality.

Impact of new media:

New forms of socializing
:. online communities
New forms of working
:. New Media increase speed of processes
:. New Media substitute human labor with automatic procedures
:. e-procurement
:. supply chain management
:. customer relationship management
:. e-commerce
:. New Media enhance productivity of human labor
:. teleworking, virtual teams
New forms of learning
:. online learning, virtual university
E-Government

Sociable Media

Sociable Media Group
MIT Media Lab

Changing lives with technology

In the second digital decade, one thing is clear: high-speed Internet access is having a profound effect on how consumers approach their daily lives. According to the Yahoo/Mediaedge study (April 2005), over 50 percent of U.S. Internet users have broadband access. Because of the pervasiveness of broadband technology, consumers are now using the Internet to socialize, manage their lives, find the "full story" on any topic, and to entertain themselves. Daily tasks are being completed online now because of the ease of use and depth of content that is available to users at their fingertips.

Though wireless Internet access within the home is in its early stages, with eight percent of Internet households currently using wireless broadband, the new technology is allowing users to choose where and how they access the Web. Eighty percent of wireless broadband users sometimes or frequently access the Internet from their bedrooms, while a surprising 21 percent use their wireless access in the bathroom. No matter the location, study participants agree that this freedom of choice is resulting in even more integrated experiences.

By altering the routines of daily life, broadband is impacting marketing strategies.

Trends

Today, customer fragmentation is the most important trend and challenge across all media platforms. Making profits from the "audience of one" is the new strategic mantra for survival and success.

How will media businesses manage the transition from mass to one?
Will mass media exist in the future?
Which device will be the focus of personalized distribution?
FT Digital Media and Broadcasting Conference
Tekes report - Finland
Good reading for people, who are really interested in innovation journalism and futures.

The 4 laws of digital businnes

Moore's Law
Every 18 months, for the foreseeable future, chip density (and hence computing power) will double while cost remains constant, creating ever more powerful computing devices without raising their price. Moore's law made possible the cheap digitalization of nearly every device we can think of.
Metcalfe's Law
The usefulness, or utility, of a network equals the square of the number of users of the network.
In other words:
"Getting the critical mass to stimulate creation and communication"
Coases's Law
A firm tends to expand until the costs of organizing an extra transaction within the firm becomes equal to the cost of carrying out the same transactions on the open market. Internet working considerably reduces transaction costs until they approach zero.
In other words:
"Focus on core competencies and take the best innovations from others"
The Law of Disruption
Social, political and economic systems are changing and transforming. Today, in the internet age, the environment might change instantly since you can exchange information in seconds.

The core processes of the media industry

> Content generation
Create rights > Buy / sell rights > Package and price > market
shall be transformed from a one-way process to an interactive one, better reaction to customer needs and value-based pricing strategies

> Content delivery
Purchase ready goods > Produce content > Store > Distribute / sell
shall offer multiple distribution channels and new payment forms

> Advertising sales
Define inventory and price > Sell > Develop and produce AD copies> Incorporate in media product
shall be transformed into B2B marketing

> End-customer interaction
Acquire > Enlist > Serve > Retain
shall offer superior relationship benefits, by listening and reacting to customer feedback: from customer acquisition to customer retention.

Example for RTL Group:
Content Creation > Aggregation Production > Syndication > Distribution

Characteristics of the media industry

> Short-lived creative products
Content is a perishable commodity!

> High economic sensitivity

> Multi-local focus, not global
Even top global media players have strong national focus (AOL Time Warner, US :: News Corp., US :: Walt Disney, US :: Viacom, US

Media companies compete on three fronts

The triple market interface:

For compelling content
:: Authors' market
:. Authors' and Artists' contracts
:. License and Copyright deals
:. Content Syndication

End-consumer attention and spending
:: Consumer market
:. Cover price revenues
:. Subscriber revenues
:. Tickets

For corporate marketing budgets
:: Advertisers and sponsors market
:. Airtime and ad space sales
:. Event sponsoring

Characteristics of the media portfolio

Media companies tent to diversify across sectors to make them less volatile. If ad revenues go down, they can count on subscriptions, merchandising, etc...

> Consistent Portfolio Optimization

> Leverage Content (Disney> The Lion King Example)

> Scale Effects

> Cross-sector Synergies (same customer database, direct marketing purposes)

The Costs of Content Creation & Distribution

	Content cost per second	Distribution cost in millicents per second
Theater	$70	460mc
Film	$9260	5.2mc
Broadcast	$500	0.068mc
Cable	$111	0.046mc = 0.46c/s per viewer
Internet TV	$250	1.85 mc

Internet TV

Interactive Content / Speciality Content
Participation
Shopping
PETA TV
Animal Rights TV

Current issues:

July 09 2004: A survey of 3,600 internet users in eight countries (ustralia, France, Germany, Italy, Korea, Japan, the UK and the U) showed that as many as 50 per cent had downloaded copyrighted content in the last year. Of those people who have downloaded films, 17 per cent said they are going to the movies less often, and 26 per cent said they bought fewer DVDs, according to online researcher OTX, which conducted the study in partnership with the MPAA. Global movie admissions were down by four per cent in 2003 to about 1.57 billion, compared with 1.64 billion in 2002, according to research provided by the MPAA.
From 1993 to 2004, admissions have gone up 27 per cent, by 330 million, and DVD sales and rentals have shot up by 50 per cent from 2002 to 2003, the research showed.

> P2P
negative aspect:
:. Damage profitability of music business

> Music Industry Trends
Music Industry Value Chain:
Studio-Digital Product > Publisher > Physical Product > Physical Distribution > Wholesale Retail > Consumer

New Value Chains that could involve Telcos (mp3 to phone):
Studio-Digital Product > Publisher > Promotion Partner > Retail via Telco > Consumer

Digital Downloads advantages:
:. Non need to swap CD's
:. Instant access to all titles
:. Less space
:. Additional information
:. Unbundling, rebundling, sample
:. Search, Sort and play based on personal preferences
:. Portability across multiple devices

positive aspect:
:. New web based bus models like Apple iTunes

> TiVo
- if widely used (skip-ad function), can damage Ad revenues (70% of TV channels revenues)
+ might stimulate split screens, sponsoring

> BROADBAND
:. alternative to DVD

TiVoToGo

January 2005: TiVo is trying to build a culture of letting consumers move their content around the home and beyond, and as long as they're doing it within the copyright concerns. Digital video recorders let viewers record TV shows onto hard disks, fast-forward through commercials and pause live broadcasts. TiVo subscribers account for about a third of the estimated 6.5 million of the nation's (USA) households that have DVRs. TiVoToGo will be an automatic, free service upgrade for subscribers who own standalone Series2 TiVo DVRs. It will not work for subscribers owning DirecTV-TiVo satellite boxes. The technology will work only with computers based on Microsoft Corp.'s Windows XP or 2000 operating systems, although a version for Macintosh computers is planned. The recorded shows are transferred to PCs or laptops via a home computer network. Users would have to download free desktop software from the TiVo Web site onto the computers. A media access code and password is assigned to each user's account, essentially restricting the transferring and playback of shows to household members with the same access code.
TiVo officials have tried to strike a balance between what they consider consumers' rights and Hollywood's copyright concerns. They say the video files being transferred are encrypted and need the corresponding media access code for playback. If users try to e-mail the files to others or send the files over the Internet, their accounts could be revoked. "TiVoToGo is for personal use only," said Jim Denney, director of product marketing at TiVo.
TiVo Inc.