Ch. 9: Online Content & Media

Question 1

What are the 2 categories of online content?

Answer 1

1. print industries (newspapers, books, magazines)

2. online entertainment industries (television, movies, radio, video, games, music)

Question 2

How has content audience and market changed?

Answer 2

1. influenced by sales of tablets and smartphones
2. content is no longer tied to physical products–can be delivered over the Internet and to multiple devices, reducing costs for customers

Question 3

impact of Internet on media

Answer 3

increasing total demand, but sometimes the firms’ physical products are being replaced by digital versions (content isn’t cannabalized but physical media is)

Question 4

What are 3 revenue models for digital content delivery?

Answer 4

1. subscription: all you can eat
2. a la carte: pay for what you use
   - both pure play
3. advertising: free to users/freemium higher price option

Question 5

What are attitudes about paying for content/tolerance for ads?

Answer 5

Internet audiences expected to pay nothing for online content but accept an equal number of ads as a consequence

Question 6

(DRM) digital rights management

Answer 6

the combination of technically and legal means for protecting digital content from unlimited production w/o permission

Question 7

“walled garden”

Answer 7

restrict widespread sharing of content (locking the content to a physical device or digital stream w/no local storage)

Question 8

What opportunities does the Internet offer the text publishing industry?

Answer 8

a new generation of content stored and sold over the web; available anytime, anywhere and on any device

Question 9

What are 3 issues online newspapers have had causing decreasing revenues?

Answer 9

1. availability of alternatives
2. slow to turn to Internet
3. fail to protect its content from being distributed by headline aggregators

Question 10

How has the audience and size of growth of the newspaper industry been affected?

Answer 10

1. online audience increases the overall footprint of the newspaper media
2. online readers are highly engaged
3. online ad revenues not keeping pace of falling print revenues

Question 11

How have newspaper business models changed over time?

Answer 11

fee–>free–>fee-based metered + subscription model

Question 12

crowdsource distribution

Answer 12

a new channel for self-published authors to skip professional editors and publishers

Question 13

Amazon + Apple: the new digital media ecosystems

Answer 13

combining hardware, software and online megastores to allow authors to determine prices (typically lower) and platform takes a percentage of sales

Question 14

What are 2 challenges in the digital e-book platform?

Answer 14

1. cannabalization

2. finding the right business model

Question 15

cannabalization

Answer 15

when sale of new digital products replace sales of traditional products
-prices and profits from digital products are lower than physical products

Question 16

Impact of Internet on magazine industry

Answer 16

advertisers turning to digital platform where readers increasingly get news and now have richly detailed color photography

Question 17

magazine aggregator

Answer 17

a website or app that provides subscriptions and sales of may digital magazines

Question 18

What are 3 changes in customer preferences in the online entertainment industry?

Answer 18

1. accelerated/social network platform development have changed consumer preferences and increased demand deliver over Internet devices
2. growth in broadband allows for wireless delivery of all forms of entertainment including television and premium video
3. development of HQ experiences online has eliminated the need for digital rights management

Question 19

cloud computing

Answer 19

storage and streaming of large Internet data centers rather than individual personal devices (which has created a shift away from ownership of content)

Question 20

(OTT) over-the-top

Answer 20

use of the Internet to deliver entertainment services to the home on cable TV or FiOS network by riding “on top” of other network services such as cable TV and telephone services

Question 21

How has the viewing experience changed?

Answer 21

Shift from lean back and enjoy to learn forward and engage (social networks) = multitasking

Question 22

How has the movie industry been affected?

Answer 22

consumers want access to cloud-stored movies rather than downloading entire movies to their devices

Question 23

How has the music industry changed?

Answer 23

shift from concept of “owning” music to “accessing” music: less dependent on selling a profitable physical product, but rather HQ products from a variety of Internet distributions competing to by content

Question 24

What are the 4 types of gamers?

Answer 24

1. causal game players on PCs/laptops
2. social gamers playing on a web browser/social network
3. mobile gamers on smartphones/tablets (fastest growing)
4. console game players on and off line