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Publishers, music labels, game developers, 10 Disruptive Business Models

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Publishers, music labels, game developers, broadcasters and content producers are dealing with disruptive innovations
that put serious pressure on their current business models. Business models that have been effective for decades are
devaluating by the minute. The increasing power of disruptive online and mobile game changers enables location-based
and on-demand content consumption. As a consequence of these supercharged technological advancements, consumer
behavior is changing rapidly. On a societal level, media technologies are creating unprecedented new opportunities for
serving local communities. At the same time, media and entertainment markets have never been more global. Apple’s
iPhone (released in June 2007) and iPad (released in April 2010) have kick-started an incredibly fast growing market for
personalized media consumption on smart phones and tablets. Facebook (launched in February 2004) and Twitter
(launched in July 2006) have obtained a user base that exceeds 1 billion (Facebook) and 500 million (Twitter) users
worldwide. To survive this phase of disruption, media companies will need to develop added value ecosystems.
The competitive advantage of media companies is predominantly dependent on
their capability to adapt to disruptive online and mobile game changers.
Media and entertainment companies operate on the cutting edge of information, communication, interaction and
participation. Consumers, businesses and public institutions are embracing online and mobile functionalities, albeit at
their own pace. Traditional circulation figures, ratings and eyeballs are in decline and so are revenues from advertisers.
Readers, listeners, viewers, players and researchers are all, in one form or another, rapidly becoming users. Users expect a
personalized experience. This is a paradigm shift in which the classical and mass market push model is becoming less
relevant and added value ecosystems are the best option for survival. Communication and distribution channels are
converging and market boundaries are fading away. Many new entrants are turning these merging markets into
intensified competitive arenas. The result is price pressure, fragmentation and increased uncertainty in the return on
investment of innovation strategies. On the other hand, the number of innovative and participative media formats has
never been as high as it is in today’s media and entertainment markets. It is a perfect storm for media and entertainment
companies, one that is surely to leave more than a few media shipwrecks in the remaining fleet of media veterans.
Disruptive
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Published in: Business, Technology
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