Media Industry
The media industry is currently in the midst of an evolutionary transformation that is shifting the balance of power, altering the long-established basis of competition, and restructuring every facet of the industry value chain. Web-based technology innovation and rapidly changing consumer media consumption needs are joining forces to create a powerful transformational virtuous circle, generating tremendous business opportunities to meet the demands of an increasingly savvy and demanding digital media consumer.
Changing Consumer Media Needs
Although consumers’ fundamental media “content” needs have not altered since the beginning of the modern media era, their media “consumption” needs have changed significantly and, in the digital age, such needs are shaped by a greater desire for: media interactivity, content personalization, self-expression, communal interests, and, above all, the ability to enjoy the media content of their choosing anytime, anywhere, in any format, and on any device. In short, digital media consumers are increasingly demanding a Personalized Digital Media Experience, where they are firmly in control.
Web-based technologies and changing media consumption needs have profoundly altered the manner in which digital media content is currently being consumed, with greater changes to come in the future. The traditional media “consumption cube” (Content, Format, and Channel) will ultimately be consumed along three additional consumption dimensions: Time, Place, and Device.
As a result, media consumers will experience tremendous flexibility and unprecedented control over their digital media entertainment; empowered to consume their personal media content anyplace, anytime, in any format, and on any device. This will be the true essence of a Personalized Digital Media Experience.
The challenges facing media industry participants are numerous: increasing online migration of media consumption followed by a corresponding online migration of advertising expenditure; rapidly evolving consumer media consumption needs; fragmentation of the “mass” audience base; and democratization of content creation. The evolution of the media industry from a linear mass audience broadcast model to a demand-led personalcast model is well underway, transforming the mass audience base into An Audience of One, based upon individual tastes, interests, lifestyles, and demographics.
The brave new world of the digital media marketplace is not only filled with unforgiving challenges, but also with lucrative opportunities. A systematic, specialized, and industry focused investment approach will greatly contribute to the successful acquisition and development of outstanding digital media businesses. At the same time, a consumer-focused approach to digital media corporate development and strategy formulation will greatly increase the odds of success for those imaginative and astute media firms that have recognized the potential opportunities offered by the digital age.
