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Changes in the MarketsChanges in the Technologies therefore Changes in the Publishing Industry
New Business Models in a rapidly evolving WorldRobert E. Baensch
Director, Publishing Programs
SUNY Global Center, New York
Three mega trends driving China
Changes in the Market
• Rising number of Consumers• Urbanization of China• Competition for time/attention• Changing Consumer Habits• Transition from Print to media
– digital delivery
Urbanization in the Market
• The largest migration in human history
• 300 million people have moved to cities
• 350 million more will be moving to cities
• 160 cities have population of one million
• 14 cities have population of more than five million
• Shanghai – 23.9 million McKinsey&Company, China, April 2014
Rising number of consumers
• China is unique in the global market
• 300 million people entered the consumer market over past 30 years
• 200 more million will enter middle class by 2026 – market growth
• McKinsey&Company, China, April 2014
Affluence rising with large scale Urban Growth
China grows in Urban Population
CHINA: World’s most mobile population
Changes in the Technologies
• Changing Consumer Habits• Transition from Print
to media – digital delivery• Mobile phone - SmartPhone
Internet users in selected countries 2014(million)
Major growth potential for China
Country Population Internet Users Penetration % population
USA 322.8 279.8 86.7 %UK 63.4 57.0 89.9 %
Germany 82.3 71.7 86.0 %France 64.6 55.4 85.7 %
S. Korea 49.5 45.3 91.5 %Japan 126.9 109.2 86.0 %
China 1,393.8 641.6 46.0 %
Source: Internet World Stats News, May 5, 2014, Number 079.
Transition from Print to Digital
“Digital will soon reach half of all time spent on media in China,
up from just a third of time spent
two years ago.”
--Zenith Optimedia September 2014
Digital replaces Physical Printthe only constant is change
Digital’s growing Dominance: Nearly half of Content Spending will be for Digital Products by 2017
Mobile devices proliferate in China
95% Own a Cellphone
37% Own a SmartPhone
69% Age 18-29
Own a SmartPhone
Source: Pew Research Center, February 2014
26
Convergence Adds New Competitionfor Users’ Time and Attention…
Source: McKinsey iConsumer 2010
TABLET USERS – U.S.
Traditional media are losing attention rapidlyConvergence of print, images, audio, video multi media
“The certain – actual SHIFT”
Changes in the Publishing Industry
• Competition for time/attention• Changing Consumer Habits• Transition from Print to multi
media – digital delivery
Book Publishing in China is expected to have sustained growth.
Source: Datamonitor March 2013
21
But… major changes are underway
22
16
Digital Media Absorb and Challenge Every Traditional Model
Publishers compete for attention and time
Challenges• Number copies sold of more new print book titles
published has declined
• Ratio of digital readers to print readers is growing, changing marketing and distribution practices
• Information is consumed differently and the race for audience share is intensifying– Broadcast v. cable v. internet– Blogs and online magazines v. print newspapers and
print magazines– New Role of the mobile phone
95% Own a Cellphone 37% Own a SmartPhone 69% Age 18-29 Own a SmartPhone
Source: Pew Research Center, February 2014
Building Audience: Choice
Audiences today have unprecedented access to high-quality content across a variety of platforms and devices.
Being platform agnostic is essential to serving our audience.
AUDIENCE AUGMENTINGAUDIENCE FRAGMENTING
Platform “AGNOSTIC” versus Platform “SPECIFIC”
Uses of mobile: 2013 vs 2018
Publishers need to learn that every sector of our business is related to technology and changes
Technologies evolve much more quickly than markets
There is a lack of: • Consumer research during this transition
• Making connection with readers in an information overload world
• Consistency in how content is displayed across different devices
• Efficient workflows in managing digital text, images, sound, media content- lack of standards
• Experience marketing new formats via new channels – each medium has its own unique requirements
• Flexibility to respond to change – be proactive to changes
‘Skills’ was named as the most pressing obstacle to growth in mobile sectors
Obstacles to growth
Question: What are the biggest barriers to growth of mobile communications in Asia-Pacific? (Pick up to three)
Citations (% total respondents)
Top 10 New Jobs
Mobile Applications Developer
Search Engine Optimization Specialist
Sustainability Expert
Web Content Strategist
Information Services Coordinator
Source: Thinkopolis Report, Second Edition, The Future of Students and the Workplace, 2013
Digital Marketing Manager
Big Data Analyst
Privacy Officer
User Experience Designer
Cloud Services Specialist
Summary• Defining your customer of today and tomorrow
• Defining distribution and retail channels
• Develop many different ways to package and sell digital based content (multi media)
• Developing new goals which will demand new strategies – digital business models are not static
• Focus on good management, good people and good publishing programs
• Unified and integrated data will allow immediate analysis – analytics to measure change and growth
• Quality Content is the real value for long term success
谢谢!谢谢!
THANK YOUTHANK YOU
THANK YOUTHANK YOU
谢 谢Robert E. Baensch