New media ecosystems

New media ecosystems

How digitalization and immaterialization of media changes the content business

Purpose of this presentation

• add a perspective to creating a future strategy for content publishers

• by introducing a way of analyzing how media business works

• in concentrating on media ecosystems where everything has influence on everything

• resulting in defining major opportunities and threats for your future business

• that need to be addressed by any strategy for the next years

Content is immaterial by nature.

Content is immaterial by nature.

The material that content is bound to therefore dictates all business mechanics related to content.

Any evolution of content has been an evolution of content production, content distribution and content consumption.

Genesis level

Materialization level

Distribution level

Consumptionlevel

Production of content

Longevity of content

Availablity of content

Reception of content

Cave drawing.Immovable. Bad for distribution.

Stone tablet.Movable. Progress.

Papyrus roll.Easy to move. Could be reproduced manually. Big progress.

Books. Easy to move.Industrially reproduced.Revolutionary progress.

Photography. Revolutionizes alsothe production side – capturingcontent made easy.

Photography + printing + easy distribution:Newspaper. Establishes advertising as a media business model.

Moving pictures introduce media ecosystems:Production technology was not widely available, distribution on specific material and special devices needed to present content to an audience.

Music had it‘s own ecosystem with gramophones and schellack records.

Realtime distribution introduced the network to an ecosystem of productiontechnology, distribution and device.

Realtime distribution introduced the network to an ecosystem of productiontechnology, distribution and device.

The TV device would servedifferent access networks(air, cable).

VHS bound the immaterial TVdistribution back to material units.Audiovisual content was made available independent from time (TV) and space (cinema), but bound to adevice – the VCR.

The compact disc digitalized audio distribution. And it made „all content equal“.

To computers, all content is equal, too.

In the computer era of digital media ecosystems, the production sideis widely available.

Distribution ofrealtime content over a multi-purpose network.

With production and distribution facilities available to anyone.

Other devices are derived from computers, forming new media ecosystems. Either due to their treatment of materialized content…

… or due to their network access (content distribution technology).

These ecosystems introduce bottlenecks controlled by single companies…

… leading to new media ecosystems driven by aggregators.

New rules apply to the content business in a world of immaterialized media.

Mass distribution level (B2B) $Sell/buy Licence/Rental

Genesis level

Materia-lization level

Technology allows multiple copies without quality loss

Binding content to material creating no. of x units

Singledistribution level (B2C)

$per material unit

„Best Buy“ „Blockbuster“

Simplified view on materialized media business

Brain/Content Production/Tech.


Anywhere in this machinery, influence can be taken

Genesis level


Simplified view on materialized media business: TAKING INFLUENCE

License/buy content

Own / use production facilities and technologies

Run an editorial department





Product packaging / bundling

Choice of material Choice of package

Mass distribution level (B2B) $Sell/buy Licence/Rental


Influence on timing

Indirect influence on retail pricing

Influence on pricing


$per material unit



In store displays

In store advertisingThe end consumer relation begins here

Simplified view on materialized media businessTIME REMAINING

This kind of business stays. But the countdown is ticking for immaterialiized content to take over a significant portion of your business.

Your influence changes.

Genesis level


Mass distribution level (B2B)





$Sell/buy Licence/Rental

$per material unit



Genesis level




$Sell/buy Licence/Rental

$per material unit


Simplified view on immaterialized media business

Immaterialization of content changes the whole mechanics

Genesis level


Simplified view on immaterialized media business – for example, music

Music studio 1991: 300,000 US$Software studio 2010: 300 US$

More and more content is generated (long tail)



$

$per material unit


Merged distribution levels

End consumer relation built overdevices and aggregation applicationsinstead of physical stores Sell/buy becomes a commission/

rev. share model; license or buy

Business models change over new distribution technologies



$

$per material unit


Merged distribution levels

ArtistSingle

ArtistMaxi Single

ArtistRemix

Artist Album Tracks

#1 #2 #3 #4 #5

#6 #7 #8 #9 #10

Packaging has turned to the consumer

Selling less of more to generate the same business


With itunes and amazon DRM gone,music a consumer owns plays everywhere

Piece of digital,immaterializedcontent

$once

Device independent content means less turnover

Who profits, who doesn‘t?

Apple sells Oil lamps –the lower the oil cost, the better.

There are industries – not in retail, but in devices and in networks – that profit from decreasing margins on your side.

Use new media, social networks etc. likeany consumer goods producer to promoteyour (materialized) products

Material-bound content sales

- DVD, Blue Ray- Comics, Books- Games- Cinema

Immaterial content sales

- Digital/Pay TV- Games Consoles/digital- Mobile Phones- Internet portals

Based on network – content – deviceecosystems with content aggregationfrontend platforms.

Genesis level

Contentaggregationplatform

Devices

Networks


$

Xbox, iphone, TV decoder

billing

Internet, digital cable, satellite, 3G


Consumerdriven packaging

Browser/Internet

Long Tail portfolio

Possible future control points

Genesis level


Devices

Networks

Example: Amazon Kindle

Authors, publishers, newspapers, magazines,amateurs

End consumer relationBilling, profilingcommunication

Dedicated device

other devices (iphone)

Some expendable 3Goperator on a flat fee

Genesis level


Devices

Networks

Example: Amazon Kindle business model puts pressure on publishers

Authors, publishers, newspapers, magazines,amateurs


Dedicated device


Some expendable 3Goperator on a flat fee

65%

35%

Beginning

70%

New option

to authors

30%becoming a publisher

http://www.businessinsider.com/henry-blodget-amazon-fires-torpedo-at-book-industry-launches-70-kindle-royalty-option-2010-1http://www.businessinsider.com/henry-blodget-kindle-sales-now-a-shocking-35-of-book-sales-when-kindle-version-available-2009-5 http://www.informationweek.com/news/telecom/business/showArticle.jhtml?articleID=222600622http://en.wikipedia.org/wiki/Amazon_Kindle

http://www.businessinsider.com/henry-blodget-amazon-fires-torpedo-at-book-industry-launches-70-kindle-royalty-option-2010-1

http://www.businessinsider.com/henry-blodget-kindle-sales-now-a-shocking-35-of-book-sales-when-kindle-version-available-2009-5

http://www.informationweek.com/news/telecom/business/showArticle.jhtml?articleID=222600622

http://en.wikipedia.org/wiki/Amazon_Kindle

Genesis level


Devices

Networks

The same mechanics: TV shows over itunes

Publishers / producers


Dedicated device


Some expendable 3Goperator on a flat fee,internet provider

Genesis level


Network driven: Verizon Fios TV



http://www.tvover.net/2009/07/28/Verizon+Reports+Strong+Consumer+Sales+Of+FiOS+TV.aspxhttp://newscenter.verizon.com/press-releases/verizon/2009/verizon-brings-the-web-to-the.htmlhttp://en.wikipedia.org/wiki/Verizon_FiOS

Networks Verizon Internetbroadband access

56% growth 08 – 09bundling phone & internet to TV content

Devices Dedicated device(Motorola)

http://www.tvover.net/2009/07/28/Verizon+Reports+Strong+Consumer+Sales+Of+FiOS+TV.aspx

http://newscenter.verizon.com/press-releases/verizon/2009/verizon-brings-the-web-to-the.html

http://en.wikipedia.org/wiki/Verizon_FiOS

Genesis level


Devices

Networks

Another ecosystem in the making: hulu


End consumer relationprofiling, communication

No billing yet

Any device with a browser, desktop, „playon“ over consoles

Any internet provider

http://www.hulu.com/about/media_faq#backgroundhttp://www.hulu.com/labshttp://en.wikipedia.org/wiki/Huluhttp://www.mediazombies.com/category/new-products/http://media.compete.com/site_media/upl/img/SM-Hulu1.gif

http://www.hulu.com/about/media_faq#background

http://www.hulu.com/labs

http://en.wikipedia.org/wiki/Hulu

http://www.mediazombies.com/category/new-products/

http://media.compete.com/site_media/upl/img/SM-Hulu1.gif

Genesis level


Devices

Networks

Trying to stay out of closed ecosystems: Zinio


End consumer relationbilling, profiling, communication

„Unity reading platform“philosophy – againstKindle, ipad & others

Any internet provider

Magazines and comic books go digital in future

http://www.publishersweekly.com/article/445565-Comics_Drive_Growing_Japanese_E_book_Market.phphttp://www.pcworld.com/businesscenter/article/148852/digital_comics_coming_to_the_wii_in_japan.htmlhttp://techon.nikkeibp.co.jp/english/NEWS_EN/20090709/172795/http://www.straight.com/article-220328/digital-comics-come-calling-mobile-phoneshttp://www.cio.de/news/cio_worldnews/2222173/http://gizmodo.com/5463681/comic-books-will-look-incredible-on-the-ipad

http://www.publishersweekly.com/article/445565-Comics_Drive_Growing_Japanese_E_book_Market.php

http://www.pcworld.com/businesscenter/article/148852/digital_comics_coming_to_the_wii_in_japan.html

http://techon.nikkeibp.co.jp/english/NEWS_EN/20090709/172795/

http://www.straight.com/article-220328/digital-comics-come-calling-mobile-phones

http://www.cio.de/news/cio_worldnews/2222173/

http://gizmodo.com/5463681/comic-books-will-look-incredible-on-the-ipad

Genesis level


Devices

Networks


$


billing


Strategic questions for upcoming and existing ecosystems


Browser/Internet

Long Tail portfolio

Possible future control points

Where‘s your influence?




Opportunities

Build direct consumer relations.

Aggregator platforms takeover these relations, using content to sell other goods.

Less cost in materialization, distribution.

Dependent on getting in existingaccess/device/content ecosystems.

„Store in store“ concepts with aggregators.

Loss of all significant control points in value chain thus getting pressure on margins.

Threats

Genesis level


Devices

Networks


$


billing


Strategic threat:


Browser/Internet

Long Tail portfolio

Your influence might end here in future.

Thank you.

There‘s more where that came from.

This presentation is impossible to show with royalty-free images. I took the liberty of integrating pictures from all over the web.

If I used your picture and you want me to take it off, please email to [email protected],I will do so immediately. Thank you.

Date post:	31-Oct-2014
Category:	Business
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