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Week 3: trends & change in the current media landscape (4 types of…
Week 3: trends & change in the current media landscape
technology as disrupter
technology as accelerator (making things completely change)
convergence
technologically-driven fusing of the 3Cs (content, computing, and conduits
converged industries: Apple, Amazon, Google
converged technologies: smartphones
4 types of technological innovation
incremental
small adaptations and improvements to stable industries and technology ex: transition from manual typewriter to electric typewriter
architectural
simple tech/process improvements; uninteresting but have big potential and impact
ex: transition from VCR to personal video recorder- same idea (recording tv) but subtle change (skipping ads); huge impact on businesses that profited from ads
discontinuous
entirely new, transformational; threaten incumbents
transformational technology that disrupts the whole media industry
intro of satellite TV in europe interrupted weakened public service broadcaster bc now commercially motivated companies can come and take attention (competitive dynamic change)
(satellite example) distance of transmission increased, politicians cant't put regulations for airwaves, no need for gov. to interfere bc ppl watch what they want
market-based disruptive
simple changes, PROCESS that leads to drastic change and impact in market ex: Netflix slowly made change (netflix box)- interrupted HBO
2 elements of incumbents' activities: market structure (new products/categories, business models (competitors change strategies,resources products to compete)
2 forces of change that influence how media organizations are structured
technology
new platforms
consumer internet-enabled devices; multifunctional
-On-demand cheap content thanks to storage/processing (e.g. Netflix)
new content form
social media accelerates : distribution (faster) ex: news through FB
new content technologies
broadbands (allows digital access anywhere/anytime)
wifi ubiquity (spreads that access globally)
consumers
less loyalty (to media org)
more options (to chose from)
less time
value chain
steps of production process/business that generate value for a business
produce content--> aggregate content (how it's laid out)--> distribute content (trust, paper boys, etc.)--> consumer
vertical integration
owning multiple steps in the chain
more efficiency, control over resources (know how much you are making, security
difficult for new players to enter the market bc they need a large amount of resources and time to compete ($$)
3 value chain disruptions (can be due to 4 types of innovation and can lead to change in busniness models)
disintermediation
new business come and focus on specific stages in value chain (ex: music industry Spotify replaced reproduction & packaging, marketing, distribution, retailing instead of company doing it)
format producer (new role): companies that sell/make concepts/ideas of a tv program
(e.g. the voice, X Factor)
fragmentation
single stages of value chain turn into multiple things (discrete activities)
contraction
traditional stages can be bypassed directly ex: from producing content to self-publishing online to consumer
role of digital media platforms
gatekeepers: control distribution at the end of traditional media's news value chain
companies can disappear if they don't adapt (lose control over distributions, compete in content production + aggregation)
impacts of these changes
changed media market (new strategies, restructuring- legacy players threatened)
fragmentation of audiences (fight for customers-- niche programs; ppl less loyal, more busy, more choice
new purely digital player= strong advantage
further tech. innovations disrupt markets