Navigating the Media Industry:
Evolution, Challenges, and Web3 Opportunities in the Digital Era
I read around 100 pages across 5 reports, a few academic and research articles, and analytics on the current state of the media industry, how monetization works for media companies, and the opportunities crypto & Web3 offer for the industry.
I did all that so you don’t have to.
In this article, I will be sharing a comprehensive breakdown of what all of these mean and how Access Protocol is revolutionizing the game when it comes to media monetization for content creators like us.
Here are the topics we’ll be covering in this article;
1. State of the Media Industry
- Definition and Evolution of the Media
- Introduction to the current landscape of the media industry.
- Trends are shaping the industry.
2. Traditional vs. Digital Media
- Comparison between traditional media (TV, print) and digital media (online platforms, social media).
- Challenges facing traditional media.
- Role of technology in reshaping media consumption habits.
3. Monetization Strategies for Media Companies
- what monetization entails and its importance
- Models of Media Monetization (Advertisement, subscription &Hybrid)
- Tradeoffs of advertising vs subscription offering
- B2C subscriptions vs. B2B and its challenges
- Creator, and Consumer incentives
3. Opportunities Crypto & Web3 Offer for the Industry
- Decentralized Content Platforms
- Tokenization and Micropayments
- NFTs and Digital Ownership
- Community Engagement and Governance
- Data Privacy and Transparency
4. How Acess Protocol is revolutionizing the game when it comes to Media
Let’s dive right in!
State of the Media Industry; Definition and Evolution.
In today’s fast-paced digital age, the media industry is undergoing a profound transformation, driven by technological advancements, changing consumer behavior, and the rise of decentralized platforms. Just as change is a constant in life, the same can be said of the media industry. From the evolution of traditional media to the emergence of digital content ecosystems, the landscape of media consumption is continually evolving, presenting both challenges and opportunities for media companies worldwide.
The media industry, in its essence, encompasses the dissemination of information, entertainment, and communication through various channels and platforms. Over the years, we have witnessed a significant evolution in media formats, from print newspapers and television to online news portals and social media platforms. Today, the media industry is characterized by a diverse ecosystem of content creators, distributors, and consumers, facilitated by digital technologies, and heading toward decentralization
> Trends Shaping The Media Industry
The media industry is undergoing a profound transformation, shaped by several key trends. Digital transformation is at the forefront of this trend, with media companies adapting to the widespread adoption of digital technologies like smartphones and streaming services. Since consumers expect tailored experiences, the need for content personalization becomes essential, prompting media companies to leverage data analytics and AI for targeted content recommendations. The rise of streaming services like Netflix and Disney is disrupting traditional television and film models, while social media platforms, such as Twitter, Instagram, Facebook, TikTok, etc, are reducing the barrier to media production and distribution through user-generated content.
Mobile-first consumption is prevalent, driving media companies to prioritize mobile-friendly formats and app development. The rise in podcasts and audio content offers an immersive alternative to traditional media. There is also the issue of data privacy and regulations, which are shaping industry practices, with a focus on transparency and compliance. Finally, the emergence of Web3 and decentralized platforms presents new opportunities for content creation, distribution, and monetization, heralding a paradigm shift in the future of media consumption.
Here are some news reports to back these claims
Traditional vs. digital Media
The media landscape has changed dramatically in the past few decades, with the rise of digital technology. Traditional media once dominated the scene, However, the introduction of digital media has transformed the way information is created, consumed, and shared.
Here are some comparisons between both media
> Challenges Facing the Media Industry.
While these trends and changes offer opportunities for innovation and growth, they also present challenges that traditional media companies must confront to thrive in the digital age. Let’s use this infographic to explain
- Digital Takeover: The first challenge is the issue of digital media taking over traditional media, and we can trace this to the current trend of how we get our information. The way we consume information has changed dramatically, with the majority of people now getting their news and entertainment online. Gone are the days of purchasing printed newspapers or tuning in to television broadcasts; instead, Twitter feeds and blogs are now the go-to, offering instant access to trending topics and breaking news. As you’d expect, advertisers will follow suit. Reallocating their budgets to digital platforms where they can target tech-savvy consumers more effectively. Why invest in newspaper or TV ads when you can reach your audience directly through social media or e-commerce platforms like Amazon? With digital media serving as a faster and more efficient way to share information, it’s a no-brainer that they take over traditional media.
2. The Use of a Sensational Approach to Compete: As a result of the digital takeover, traditional media would want to find a way to get the market share still and be relevant, so they resort to a sensational approach such as exaggerating a story than it is, selective reporting, and what some may call “lying as a service” to attract audiences. While at first, this, might not be a problem and probably even remarkable, it slowly begins to reduce the faith of the people in the media and worsens the industry’s credibility crisis
3. Lack Of Trust: With continuous mincing of the news to favor their agenda, people begin to realize that they can't trust the media for authentic and unbias information, which leads to a lack of trust and they start to go away, leading to low usership
4. Low Revenue: As a result of low usership, there, of course, would be a drop in revenue coming into the media house as advertisers might start withdrawing as their audience isn't as profitable or receptive, turning to the media industry, which is the latest trend following the people to where they are.
5. Staff Layoff/Salary Slash/Low Payment: Just like a spiral, with less money coming in, media houses struggle to be in business, which likely results in cutting down of staff and salaries just to stay afloat
6. Low quality of staff: Layoffs and low salaries are likely to bring about underpaid people, tasked with high deliverables in a stumbling industry, and as such, they do anything to meet their target, be it lying, and this leads to people trusting the digital media as the major thing they are looking to protect is their fame, and they would do this by giving the truth, and the audience can decide who they want to listen to or even compare information across several key opinion leaders. Starting the circle over again.
So all this results in the current state of the media industry. But before we go into the solution that Access Protocol gives, we can tell that a major cause of these is the bid of the media houses to remain profitable, so next we look into how monetization works in the media, both for media houses, creators, and consumers alike.
Here are some news reports to back these claims
Monetization Strategies for Media Companies
What’s the buzz about monetization?
While the word, monetization might sound like a mouthful, it’s simply the art of turning eyeballs into dollars. In other words, it’s how media companies make money from the content they create. Because, let’s face it, without a steady stream of revenue, even the most captivating stories can sink faster than a lead balloon.
> Models of Media Monetization
For media houses, there are three means of earning: through advertising, through subscriptions, and hybrid
The advertising model; We see ads virtually everywhere, from the billboard on the road to our social media platforms. From TV and radio, Twitter and Instagram, all the way to points of purchase like Amazon, Jumia, and AliExpress. Advertisers pay media houses to showcase their products to their audience.
2. SUBSCRIPTIONS MODEL. At one point or another, you probably subscribed to something, be it the likes of Netflix, Dstv, WSJ, podcasts, or newsletters, the list is endless. Media houses and creators also used subscriptions as a way to monetize their work. These could be free, like the time on YouTube, but for the most part, they are paid and can be on a monthly, quarterly, or annual basis.
3. Hybrid Models: Many media companies employ hybrid monetization models that combine elements of both advertising and subscriptions. For example, freemium models offer a basic level of content for free while charging for premium features or exclusive content, e.g., Spotify. Metered paywalls allow users to access a limited number of articles before requiring a subscription, e.g., the Wall Street Journal. Ad-supported subscriptions offer an ad-free experience to paying subscribers while displaying ads to non-paying users, e.g., YouTube. These hybrid models aim to balance the need for revenue to reach a broad audience and maximize engagement.
> Tradeoffs of Advertising vs Subscription Offering
So, picture this: you’re cruising through your favorite website or catching up on the latest news, then, bam! An ad pops up, trying to sell you the latest gadget or a miraculous weight-loss solution. While ads can be quite annoying, they are important to sustain the media/creators, allowing you access to content for free.
There are also subscriptions! Here, members pay a monthly fee, and in return, they get ad-free access to content. It’s like having your own VIP pass to the digital world.
Now, let’s talk tradeoffs.
Advertising serves as a fundamental revenue stream for many media companies, allowing them to offer content to consumers for free, the likes of YouTube, Spotify, and even traditional platforms like TV and radio, as they help to keep them running. However, you have to put up with those ads, which can be quite interrupting.
On the other hand, subscription offerings provide consumers with an ad-free experience in exchange for a recurring monetary payment. Subscribers enjoy uninterrupted access to content. However, the tradeoff for this premium experience is the necessity of paying a subscription fee. While subscriptions offer an enhanced user experience and greater control over content consumption, they may prevent potential consumers who are unwilling to commit to ongoing financial obligations.
> B2C subscriptions vs. B2B and its challenges
When considering business-to-consumer (B2C) versus business-to-business (B2B) subscriptions, distinctions arise in the target audience and value proposition. B2C subscriptions cater directly to individual consumers, offering personalized content experiences and entertainment services such as Spotify, newsletters, etc. In contrast, B2B subscriptions target businesses seeking access to specialized tools, software, or services to streamline operations and enhance productivity, such as Salesforce, and Hubspot.
Here are some of the challenges peculiar to B2C and B2B subscription
1. High Loss Rate: B2C subscriptions often face a higher churn rate compared to B2B subscriptions, as consumers may be more likely to cancel their subscriptions due to changing preferences, budget constraints, or dissatisfaction with the service. This poses a challenge for businesses in maintaining a consistent revenue stream.
2. Consumer Retention: Acquiring new customers can be expensive, making it crucial for B2C subscription businesses to focus on customer retention. Keeping consumers engaged and satisfied with the service is essential to reducing churn and increasing lifetime value. This would require continuous investment in customer support, product innovation, and personalized experiences.
3. Market Saturation: In certain industries, the market for B2C subscriptions may become saturated with competitors offering similar products or services. This can lead to intense competition for market share and pricing pressure, making it challenging for businesses to differentiate themselves and stand out from the crowd.
4. Fatigue From Subscription: As a result of numerous subscriptions and the associated cost, users may become tired. In order to maintain consumer loyalty and justify continuous subscriptions, B2C subscription firms need to provide compelling value propositions and distinctive experiences.
5. Payment Processing and Billing: Managing payment processing and billing for individual consumers can be complex and time-consuming, especially for subscription services spanning various countries and currencies. B2C subscription businesses must ensure seamless and secure payment processes to minimize friction and reduce losses.
Challenges of B2B Subscriptions:
1. Longer Sales Cycles: Compared to B2C subscriptions, B2B subscriptions typically involve longer sales cycles, as decision-making within businesses often requires approval from multiple stakeholders, extensive product evaluations, and negotiations on pricing and terms. This long process can delay revenue realization and increase the cost of customer acquisition.
2. Customization and Integration: Customization and Integration: In order to meet the specific needs and requirements of each business customer, extra development work, customization efforts, and continuous assistance may be necessary. This presents challenges for scalability and resource allocation.
3. Complex Pricing Structures: Depending on usage, user seats, feature levels, contractual terms, and other considerations, B2B subscriptions may contain complex pricing systems. It can be difficult to manage pricing complexity and give clients transparent pricing information
Overall, both B2C and B2B subscriptions present unique challenges for businesses, requiring careful planning, execution, and continuous adaptation to succeed in the subscription economy.
Opportunities Crypto & Web3 Offer for the Industry
The media sector has a variety of options as a result of the rise of Web3 and crypto technologies, which are transforming the creation, distribution, and monetization of these means
- Decentralized Content Platforms: Blockchain-based platforms enable creators to publish and monetize their content directly, bypassing traditional intermediaries and gaining greater control over their work.
- Tokenization and Micropayments: The monetization of material by artists on a per-view or per-access basis is made possible by tokenization and micropayments, which promote better transparency in income sharing and more reasonable rewards for their labor.
- NFTs and Digital Ownership: Non-fungible tokens (NFTs) offer a fresh take on digital ownership by enabling artists to tokenize their creations and interact with viewers in brand-new and immersive ways. Additionally, NFTs give users the chance to accumulate and control digital assets like music, artwork, and collectibles.
- Community Engagement and Governance: Decentralized content platforms facilitate community-driven governance and decision-making processes, empowering users to participate in platform development, content moderation, and revenue sharing.
- Data Privacy and Transparency: Blockchain technology enhances data privacy and transparency by enabling secure and immutable record-keeping of user interactions, content consumption, and financial transactions.
How Acess Protocol is revolutionizing the game when it comes to Media Content Monetization
The current digital media monetization heavily relies on ads, leading to low-quality content and unsustainable competition with social media platforms. Also, while subscription models offer better alignment with user interests, they suffer from low conversion rates and subscription fatigue. Here is how Acess is solving this problem:
For Users…..
— Access Protocol introduces a new model where users can lock Access (ACS) tokens to gain access to creators’ content without recurring charges.
— Users obtain ACS tokens and lock them at their preferred creators, providing a consistent experience across multiple creators.
— Improves content quality by incentivizing creators to deliver valuable content continuously.
— Reduces friction for consumers to access multiple content providers through Web3 wallets.
For Creators…..
— Creators receive ACS tokens proportional to the locked tokens in their pool, encouraging content creation and broadening content distribution
— Creators can set the minimum ACS thresholds for content access, incentivizing users to maintain locked tokens.
— Access Protocol creates a new fee generation stream, incentivizing creators to produce valuable content
— With the ease of subscription, as there is no reoccurring payment, it’s a no-brainer that we see an Increase in the number of fee-generating users
— Decouples monetization and distribution, thereby reducing reliance on social media platforms and improving engagement.
For the crypto industry...
— Access Protocol bridges the gap between high distribution and low value per user in digital media and the crypto industry, presenting an opportunity to onboard consumers into their first Web3 wallet and expanding the crypto user base.
In conclusion, the media industry is undergoing a profound transformation, driven by technological advancements and changing consumer behavior. Access Protocol is revolutionizing media monetization by introducing a new model where users can access content by locking Access (ACS) tokens, benefiting both creators and consumers. By bridging the gap between digital media and the crypto industry, Access Protocol offers a more sustainable and equitable approach to content monetization, shaping the future of media in the digital era
REFERENCE
https://www.npr.org/2023/05/15/1173260377/vice-media-bankruptcy
