Lecture 12 Flashcards
Technology (online content and media)
Smart phones, tablets and e-readers create and publish mobile multimedia entertainment
Largest consumer of bandwidth = netflix
more than 1 billion apps available; become foundation for a napp-economy –> users can be charged for content
Society (online content and media)
Media consumption rises
Time spent on media exceeds TV
Conflict continues over net neutrality rules
Digital rights management
Combination of technical and legal means for for protecting digital content form unlimited reproduction without permission
DRM hardware and software encrypts and decrypts content
Apple used DRM to protect music (Digital rights management)
Apple removed DRM after amazon opened a non-DRM-protected music store
Apple, amazon and others develop business models with and without DRM/Free access
Wallen garden
A kind of DRM by allowing free play/reading per device or operating system
Amazon sells e-books that can only be read on kindle e-readers and kindle apps
Three revenue models
1) paid
2) free with advertiser support
3) freemium: free baisc content (potentially driving users to paid advanced content)
Users increasingly paying for high-quality unique content
E.g. music games newspaper and movies
Online paid content audience growing rapidly
Media convergence: technological convergance
IT devices combine the functionality of existing media platforms
– Watch a movie on a variety of platforms (smartphone, tablet, PC, TV, and … cinema!)
– Read a newspaper or book on paper, or digital (different subscriptions for online and/or printed news)
– Play a game ‘on board’ or ‘online’ or ‘both’ (game platforms allow playing games & pay per play
Media convergence: content convergence
Mixing of gaming, movies, news, books (not much yet; future options)
– Design, production, and distribution of content is changing
– New tools for digital editing and processin
media convergence: industry convergence
Merger of media enterprises into firms that create a cross market content on different platforms
Vertical integration, distributors, IT firms
Media industry value chain integration: 4 trypes
Current value chain
Content owner direcet model
Internal aggregator model
Internal innovator model
Most troubled segment of publishing industry
shrunk from 60 billion to 27 billion in 17 years
Failure to protect content from free distribution
Large newspaper spun off their newspaper operations to focus on other mediaa
However, Online readership growing at 16 %
More users are willing to pay for preimum content
Newspaper business models
Initially newspaper were free-based
Then free
and now returned to fee based
Now york times and other charge for premium access
Newspaper headlines are primary content on google news and yahoo news
Organipraph of a newspaper
Modeling the newspaper industry
Key business process = observe and gather facts in society to distribute content
Includes a variety of business processes
and options for business model innovations
Convergence of technology (newspaper industry)
slow move to internet, beginning to incorporate video, user fedback
Convergence of content (newspaper industry)
Four content changes
premium archived content
Fine grained searching
Videos reporting
RSS feeds
Timeliness allows competition between newspapers and real time TV/radio
Convergence of industry structure (newspaper industry)
Newspaper industry has not seen much convergence due to limited return
Wholesale model B2B2C revenue models
As with traditional publishing: the retailer pays a wholesale price to the books-wholesaler
– Retailer determines retail price (usually > wholesale price)
– ‘non-sold books’ are ‘on bargain sale’ (lower price) or ‘returned to wholesaler’ (lower price)
– Retailer revenues depend on #sales, #bargain sales, and #returned
– With lower prices of e-books, profits to publisher are also lower
Agency model B2B2C revenue models
Publishers set the retail price and designate a sales agent who receives 30% commission
Leads to higher fixed prices for e-books and no issues with #bargain sales and #returned
Changes in book publishing and distribution since 1995
1995: media migration (publishers borchures on the web
1998: media integration (books converted to PDF format for web display
2005: Media transformation (book disignated as an interactive e-book with both print and web components
2017: Media maturity (new standard book evolves that seamlessly integrates web adn text components on new mobile devices that integrate functionality of multiple platforms
Convergence in publishing industry for papers and books
Technological convergence slowed by
Digital rights management concerns
Competing standards
Content convergence (in publishing industry for papers and books)
Users experiences is still turnig pages of text and graphics
industry structure (convergence in publishing industry for papers and books)
Print publishing industry is changing
Non physical books
authors bypassing traditional publishing and distribution
Entertainment industry Major players
Television
Radio
Hollywood films
Music
Video gams
Internet is tranforming the entertainment industry
Widespread growth of broadband
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Smartphones & tablets as video & music platform
- Home Cinema
- Online streaming, Netflix, Social network platforms (YouTube etc)
- Viable business models in music subscription services
- Business models that eliminate need for DRM
- In game advertisements
