MEDIA INDUSTRIES & CORPORATE COMMUNICATION

Media Industries & Corporate Communication

Table of Contents

Introduction3

Discussion7

The Old Public Service Tradition9

Technological Change In The Broadcasting Market11

REFERENCES14

Media Industries & Corporate Communication

Introduction

The transformation challenge for what is today known as tv and media, including public service, is immense. The incumbent- managed tv value chain is challenged by the internet delivery mechanism, the internet-software-advertisingbased business models, trick-play features in video recorders (such as prerecording and fast-forwarding advertising messages embedded in programs), power-base shifts in the tv and media value chain, consumers' new expectations in customizing their media consumption, and the sometimes illegal peer-to-peer downloading. Until the advent of high-speed wired and wireless broadband access networks, tv and media consumption was a one-directional scheduled entertainment activity, indulged in primarily from living room sofas. In addition to high-speed connectivity, a modern digital home today hosts multiple high-definition fl at screens, surround audio systems, set-top boxes, advanced video recorders, accessory devices such as pcs,and peripherals including web cameras, game consoles, digital cameras, mobile internet devices, and mobile handsets. Penetration of these consumer products will increase as the cost of new technology falls, and they will all eventually become mainstream mass-market phenomena. In addition, the internet has given consumers access to a wider choice of professional tv and media content, improved matching of consumer preferences to niches via social networking sites or search engines, and the ability to share user-generated content. Even more, internet-software- advertising-based business models have created a for-free consumer mentality in which advertising subsidizes online applications and content is provided by these stakeholders. From a consumer perspective, all the above means one thing. Consumers have increased their control over media consumption (and low-end production) by choosing what to consume, when, where, and on which device. Th is means customization and ultimately personalization of media consumption. As these consumers grow older and replace older generations' media habits, their new behaviors and expectations will gain substantial market share and also become mainstream. RECOUPING ADS - AND GAINING MORE Advertising is a vital source of income not only to all commercial tv and media distributors, but also to producers of content. This revenue source has been exploited by some internet-software-advertising-based businesses in their setup of unmanaged tv offerings, including both professional and user-generated content. Moreover, these value propositions have been embraced by advertisers, who increasingly are migrating their spending to online channels. Some of these new offerings aim commercial messages at relevant and potential consumers better than the conventional-second spot broadcast tv advertising model. The improved matching capability has shifted the power base in the incumbent tv and media value chain. It puts further pressure on existing relations, as content owners and conventionally managed tv and media distributors respond to advertiser new-spending preferences. Content owners are moving downstream in the value chain by increasing their own retail distribution capability when making their content available online. tv and media distributors are expanding their own portals by adding interactivity and on-demand features to capture lost eyeballs in the broad casted scheduled ...