Media : Business Evolution ?
Media often used to carry messages/ information to or from a targeted audience and can add meaning to these messages/information through various communication vehicles like publications, broadcast, networks, programs some of them.
Digital Media means digitized content that can be transmitted over the internet or computer network.
Associated Institutions:
1. Publisher
2. Intermediary (enables Interaction)
3. Regulator
Content Categorization
1. User Generated Content — Facebook, Twitter, YouTube etc.
2. Online Curated Content — Netflix, Prime videos etc.
Other Definitions:
✔ Social Media : Facebook, twitter, YouTube etc.— offered interactive networking and connections over Internet.
✔ News Media : Traditional News Publishing outlets — offered through Broadcast (TV, Radio) and Print (Newspaper, Magazines) and Blogs & Articles over internet through website.
✔ Infotainment/Entertainment Media : Movies, TV dramas/web shows, Books, Magazines etc. — offered through theaters/multiplex, OTT platforms, Stores , websites etc.
✔ Outdoor Media: offered through Billboards, posters etc;
Coverage : potential audience that might receive the message through that vehicle.
Reach : actual no. of individual audience member reached at least once by the vehicle.
Business models
The huge risk of business model is that content loses its value to make way for money.
Majorly Media Houses rely heavily on Advertisement based revenue which subsequently depends on their Reach and Coverage.
Internet has played a crucial role in increasing information reach through its low cost higher internet penetration.
Conducive Telecom and IT infrastructure has enable internet based Platforms to serve a large crowd compared to traditional physical presence.
Known Players trying to evolve and switching to new business plans around internet. Some of are listed below:
OTT platforms/ Internet Based websites follows either one mix of Subscription Model +traffic generated revenue model + Digital Ads revenue + crowdfunding +branded events+ new products +memberships etc.
News Media:
Some Concepts
An ecosystem is a community of interacting entities, some say. The members of the ecosystem can be organizations, businesses and individuals, all creating value for one another in some way; mostly by producing or consuming goods and services.
A platform typically is focused on bringing part of the “ecosystem” together and reducing friction for interactions to take place.
A network effect essentially means that value grows as the number of users grows. It is different from mere scaling. More scale leads to lower unit costs, but no increase in value.
Current Tussle
Big Tech companies like Facebook, Google hold 61% of the market share in online advertising industry according to Edelweiss Research, by providing customized content to end users without being much of content creator. Google leads with 37%.
So these media houses now fight over Digital Ads Revenue + Traffic revenue with already established Big Tech giants like Facebook and google.
Current debate in Media
Policymakers in India have so far focused on the dominance of intermediaries such as Google and Facebook, which are positioned in a way that service providers cannot reach customers except through these platforms.
The tussles in Australia and elsewhere could have broader implications for the regulation of the digital economy in India in the longer term. A substantial discussion on the impact of intermediary platforms on the health of news media outlets is yet to commence in any meaningful way here.
According to a FICCI-EY report on India’s media and entertainment sector for 2020, there are 300 million users of online news sites, portals and aggregators in the country — making up approximately 46% of Internet users and 77% of smartphone users in India at the end of 2019.
With 282 million unique visitors, India is the second largest online news consuming nation after China. In India, digital advertising spends in 2019 grew 24% year-on-year to Rs 27,900 crore, according to EY estimates, and are expected to grow to Rs 51,340 crore by 2022.
Regulated Digital Economy
Pro-competition regulation works well to advance issues that consumers care about.
- Require more interoperability and data mobility against FTC. These changes would make it easier for consumers to use multiple services or to switch from an inferior service to a superior one, like the phone numbers portability.
Src:
https://innovation.media/newswheel/emerging-new-business-models-for-news-media
https://ipcarrier.blogspot.com/2021/02/ecosystem-platform-pipe-whats-difference.html
https://linkedstarsblog.com/tag/experiments/
