The Media Landscape 4

Question 1

Mature Market

Answer 1

Until 1990s, media market was “mature.”
a) Slow growth
b) Strong competition between known players
c) High barriers to entry
d) Knowledgeable customers

Question 2

4 types of innovation

Answer 2

tool to think about business implications of technological change
1) Routine/incremental
2) Radical/discontinuous
3) Disruptive (market-based)
4) Architectural

Question 3

Inertia

Answer 3

inflexibility in the face of
changing demands
Possible causes:
Physical resources (e.g., equipment)
Less tangible (e.g., skills, cultures)

Question 4

Dominant Design

Answer 4

During periods of change/uncertainty, a ‘dominant
design’ emerges until the next radical shift. The one that succeeds * Becomes de facto standard; market favorite
* Companies must conform, or risk failure
* Other subsequent (small) innovations are
constrained/limited by this technological approach

Question 5

Convergence

Answer 5

Technologically-driven fusing of
content, computing, and conduits—the “3Cs”

Question 6

Value Chain

Answer 6

Set of activities that an organization
carries out to create value for its customers. In media, produce content> aggregate content > distribute content> consumer

Question 7

3 key disruptions of the value chain

Answer 7

1. Unbundling, 2. Fragmentation, 3. Contraction

Question 8

Vertical Integration

Answer 8

Owning multiple steps in the chain, why ?
Historically, a good idea
Efficiency + relative security of how resources will be
used
Economies of scale & perhaps scope, too
It is difficult for new players to enter the market
Costs, resources, competition, etc.
Remember high first-copy costs

Question 9

Format Producers

Answer 9

concept & branding of a
copyrighted TV program

Question 10

3 main threats from digital platforms

Answer 10

A) weakening of traditional media’s market power
(eg ad revenues)
B) gatekeeping at end of traditional media’s value
chain
Facebook, google distribute news, and Apple distribute
movies/music; what/how is no longer controlled
C) competing in content production and aggregation
Multiple effects and changes at multiple stages

Question 11

Incremental/routine innovation

Answer 11

Processes and materials improved; industry shifts
slightly
* Extension of existing skills and capabilities
* Continuous improvement of processes
products

Question 12

Radical/discontinuous innovation

Answer 12

Technology and methods new to incumbents
* May make existing competencies obsolete

Question 13

Market-based Disruptive innovation

Answer 13

Technologically simple; new
business models central.
1) Market structure
New products/categories are initially unattractive for incumbents
2) Business model
Eventual shifts in strategy, products, etc. will have to occur
3) Not a single event but a process

Question 14

Architectural innovation

Answer 14

New technology & new business
models; difficult to pull off. New technology & new business model/market
* Incumbents may fail to see the potential
* e.g. DVRs with on-demand
TV service packages
new tech: digital, on demand
new bus. model: allows ad skipping
* e.g. internet search for news
new tech: search engine optimization
new bus. model: people find content w/o
browsing site (ads); also subscribe risks

Question 15

Unbundling

Answer 15

Previously bound steps are “unbundled” from a (vertical)
chain, and new companies can come in and focus on
specific steps. Leads to a new platform for format producers.

Question 16

Fragmentation

Answer 16

Single stages are split into multiple discrete activities. E.g., aggregation of content by producing in-house content or buying 3rd party content or enhancing external content, and then you put that into mobile, traditional print, app.

Question 17

Contraction

Answer 17

Traditional stages (and traditional media companies) can be bypassed directly.
e.g. streaming on Spotify directly no record label needed anymore.