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Media Intelligence : MT Resource 2010
the media landscape revenues are often sliding against a cost base that is difficult to move. This world strongly favours smaller and more nimble players. Media can still be highly profitable at every point along the famed “long tail” of media. However this requires carving out niches within which costs can be commensurate to revenues. Media fragments may be small, but they can be brought together to create larger businesses. Companies that can successfully replicate media operations across communities, countries, industries and demographics will reap the benefits of multiple revenue streams while contain- ing costs. Selecting multiple adjacent nichesandservingthemefficientlyisoneof the most relevant business models moving forward. An increasing proportion of content is free, however high-value content still commands a healthy price. From the wide variety of ways of adding value to content, you can select those that are most relevant to your market and positioning. Audiences are now communities, and any business strategy needs to specify how you intend to create exceptional value for your communities. An industry that has lived primarily on advertising, subscrip- tions, and classifieds now finds new revenue opportunities sprouting on all fronts. The Media Revenue Models chart (above, right) shows just some of the ways in which media operators can tap new revenue streams. Sometimes new relationships, competences and investment are required to tap these pools. That is the price of surviving and thriving. Essential capabilities Media, in the broadest sense of creating and disseminating messages, will be central to the next phase of the global economy. As such, media players have an unparalleled opportunity to apply their existing competences to building existing and new businesses. However there are select capabilities – some new and some not – that are particularly relevant to media participants in shaping an extraordinary future. Newswires and major newspapers decry aggregators who they say steal their content. However many other media participants (and indeed many of those crying foul) are finding that pointing their readers to a world of relevant content is one of the most powerful strategies available. As people spend more time on Facebook, Twitter, blogs and a plethora of other social media platforms, publishers must recognise that these are central to their business. Every media property will need to develop its own unique social media strategy (see the Social Media Strategy Framework chart, page 7). Few will prosper without tapping the connected world of word of mouth, recommendation and referrals. Niche media used to be about creating content for a community. Now it is more about creating value for communities in a multitude of ways, certainly by connecting them with each other, and sometimes by creating the communities themselves. If you can create value for groups who share similar interests, you undoubtedly have the foundations of a sustainable business. Much of the focus in the media industry over the last few years has been on reducing costs. However the old adage that you can’t grow a successful business by cutting is truer than ever. The challenge is that in a time of accelerating change, investment is highly risky. No one can guarantee you a return yet the alternative is to shrink to oblivion. The media economy will encompass an increasing proportion of the growing global economy. The rapidly blurring boundaries of the media industry represent an extraordinary opportunity to build on traditional strengths, and to hew out a world of growth, expansion and value creation. The future is yours to create. Ross Dawson is Chairman of Future Exploration network, an international consulting firm that specialises in assisting media companies create their future. His blog (www.rossdawsonblog.com), ranked as one of the top business blogs in the world, features free chapters from all of his books as well as many reports on the future of media. MediaTitles 10 “T he challenge is that in a time of accelerating change, investment is highly risky. No one can guarantee you a return. Yet the alternative is to shrink to oblivion.” Value add Media Revenue Models Sense of community Customization Tangibility Filtering Reputation Validation Timeliness Format Analysis Visualization Ease of use Design Synthesis Relevance www.futureexploration.net Advertising Brand creative Pay per click Pay per action / sale List rental Product placement Content Subscription Pay per view Pay for format Customised content Distribution Syndicatio n Licensing Custom feeds API fees Community Membership Pay for voting Pay for messaging / SMS Sales of community research Affiliate Pay per sale Pay per registration Pay per download Classifieds Listing fees Transaction fees Contextual advertising Leads Lead generation Registration for content Offers Enquiry matching Events Conferences Roundtables Showcases Access to buyers Merchandising Books / research Music / video Clothing Other Partnerships Revenue share Profit share Share of revenue increase Platform Sell distribution platform License platform Distribution fees Serve advertising Brand Brand licensing Sponsor fees Branded products Branded content p6-9 rossDawson.indd 9 8/12/09 2:05:53 PM
2009 - 2010
MT Resource Guide 2011