Tuesday, 10 May 2011
Digital revolution disruptions to media
So what are the main disruptive forces that are now forcing publishers and media companies to change their business models and ways of doing business.
Creation of quality content is as vital as it has ever been but by allowing this content to be freely distributed has become standard on which should be built on. News aggregation sites like the Drudge Report and the Huffington Post have become immensely popular and are not a threat to the journalism industry, even though some experts would like to argue so. Content aggregation has broken down the traditional newspaper bundles by making every piece of content count. The significance of the appealing front page has diminished, as people are no longer required to base their purchase decision on it. (Someone else's content is king)
Economies of scale was the main limiting factor in the creation of different content before the digital revolution. Now anyone anywhere, with relatively low barrier to entry, can set up a site where they can provide people with the content they want. The problems of producing and distributing are no longer limiting you in reaching your audience. Crowdsourcing, crowdfunding and freemium business models have made it possible for anyone with enough determination to succeed (before being bought out or run down by someone doing it better).
Power to share anything with all of your friends in the blink of an eye has completely changed the way we as social beings interact with other. Recommendations and opinions shared in the different social medias by you and your friends are affecting everything from the success of the latest Hollywood blockbuster to the overturning of the government in Tunisia. This is all allowing us to consume information at a rapid pace to the extent where even online news organizations are having difficulties in keeping up with it and having to resort to social medias when they get theirs hands on a yet unbroken story. (http://on.mash.to/15xLAY)