The Media Landscape 5

Question 1

Business Models

Answer 1

The rationale of how an organization creates,
delivers, and captures value’
* what do they do, for whom, and how?
With the rise of digital media platforms, producers, and channels
* higher ease of communication
* Value chains disrupted, new players come in; legacy players need to develop or buy competencies.

Question 2

Adjacencies’

Answer 2

Business models extended often extended through adjacencies. Outside, traditional activities
Using existing capabilities, you go for:
Adjacent markets (for existing products)
Adjacent products (for existing markets)

Question 3

Contributing factors to urge the merge

Answer 3

Primary contributing factors:
1. Globalization
2. Technology
3. Strategic advantage

Question 4

3 sources of revenue

Answer 4

1. Direct user payment
   subscriptions, paywalls, tickets, copies sold…
   Source: ML book chapter 7 (Hodkinson); images: Flaticon.com
2. Payments between media companies
   distribution rights, formats, and content
3. Advertising revenue
   Remember: dual product market!
   Advertisers often the primary customers

Question 5

Changed advertising strategies

Answer 5

1) Product Placement: the insertion of branded products or
services into mass media content with the intent of
influencing consumer attitude or behavior
2) Native advertising: advertising that mirrors the surrounding
editorial environment of a webpage
Not distinct from content; made to blend in and
look ‘native’ to the environment
3) Influencer Marketing: Relationship between a brand and an
influencer, who promotes the brand’s products or
services through various media outlets

Question 6

3 forms of mergers and acquisitions

Answer 6

1) Expansion within your sector
Buy out or take over your direct competition
2) Horizontal expansion (across sectors)
Broaden portfolio into other media sectors
Newspaper to TV, TV to radio, radio to print…
Synergies as an advantage: marketing single products
across multiple sectors
Potentially relevant here: economies of scope!
3) Vertical expansion (up/down the value chain)
Increased control over production process
Movie studio buys distribution channels

Question 7

Oligopoly

Answer 7

When market is “dominated by a small
number of powerful companies.”

Question 8

Synergy

Answer 8

Marketing single products
across multiple sectors

Question 9

Conglomerate

Answer 9

Combination of separate businesses under one
parent corporation; often multi-industry

Question 10

How to develop adjacencies?

Answer 10

1. internally develop
   Hire new staff, set up new business units, etc.
2. mergers & acquisitions
   Buy it, baby.
3. alliances and networks
   Get by with a little help from your friends / competitors