Digital developments
Global accountancy firm PricewaterhouseCoopers (PwC) has published its Global Entertainment & Media Outlook 2010-2014, and it paints a rosy picture for new media at the expense of old.
The ultimate barometer of a medium is the amount spent advertising on it, as this remains the primary business model for most media companies. PwC reckons that by 2014, Internet advertising will join TV as the only media with spending in excess of US$100 billion, meaning it will have overtaken newspapers.
"Historically reading books or newspapers has been a solitary activity," said Marcel Fenez of PwC. "However the combination of digital access, mobility and social networking is seeing consumption of all forms of media migrate from a solo activity towards being a social experience with viewers use social networking forums to discuss and share their views and content."
While the web is leading the recovery in advertising revenues, which were especially hard-hit by the global recession last year, it's looking like consumers are starting to accept the idea of paying for content directly, so long as it offers something different, either in terms of content or delivery. Adapting to these new methods of consumption is pivotal to the ongoing success of media companies.
"Some companies perceive the continuing fragmentation of the market as a threat but it should be seized upon as an opportunity," said Fenez. "It offers companies the chance for creativity around the approaches to their buyers, be it via traditional channels to market or, more importantly, by embracing social media. Either way, it's imperative that they capture the hearts, minds and money of these consumers."
But the rapid increase in the ways people can access media has led to a massive fragmentation of the market. With there being so many different ways to deliver content now, partnerships across a diverse set of industries are becoming commonplace.
"Creativity and innovation have always been associated with the entertainment & media industries and now is the time for the industry to tear up their existing business models and embrace the new and emerging opportunities," concluded Fenez.
"However they structure themselves, be it via partnerships or collaboration, they need to deliver a superior consumer experience and be sufficiently flexible to capture revenues from an increasingly fragmented market. Those who do, will be the drivers of this exciting but challenging industry."
