Posting in Sustainability
There’s no shortage of bloggers and self-proclaimed social media experts spelling out the new rules of media. Most of them are interesting, well...
There’s no shortage of bloggers and self-proclaimed social media experts spelling out the new rules of media. Most of them are interesting, well supported and appear right. However, when Tony Uphoff posted his rules I really felt it was worth sharing. Tony blogs about media at Uphoff on Media and is the well-respected CEO of TechWeb (formerly CMP Media). Tony has had a unique experience in media management having lead three of the top five B2B media brands in history. The Hollywood Reporter, where he was publisher, Information Week and PC week. He was also the founding CEO of Belief.net, a successful Internet startup which was later sold to News Corp.
While I intend to have Tony for a Q&A here’s his post on ….(drumroll please)…
The 9 New Rules of Media
Over the last 12 months the state of the economy and the impact of the recession have been topics in virtually every meeting I've been in. The discussions have ranged from detailed analysis by "leading" economists (one in particular at a meeting in March was thrilled when at the end of his 60 slide deck now predicting a decade long slide in the economy, I asked if he had predicted the recession 6 months ago) to debates on financial trends, to simply sharing the anxiety the recession has caused for all of us. In general the common thread in each of these conversations has been the attempt to gain a sense of context. "This is just like 1987 or 1991, or perhaps 2001". "This isn't a tech bubble like 2001, this is a credit bubble".
So is this economic downturn like the others? Are there lessons to be learned? As an early management mentor of mine used to say "the only accurate predictor of future behavior is past behavior". So yes, there are comparisons to be made and lessons to be learned. Based on previous cycles it's safe to assume that the economy will continue to change, and these changes will outpace our ability to forecast them. It's safe to assume that we will see an economic rebound and it will happen with more speed than we expect and with unique twists that we won't anticipate. What else can we learn from the behavior of past economic downturns? New innovations will be launched, creating new opportunities and new challenges for existing businesses. In each downturn and recovery, innovations emerge and with them a new calculus, that changes the business rules. Nowhere is this more true than in the media business.
The center of gravity in media has been on a decade long transition from analog to digital. Traditional media companies have taken their lumps during this transformative phase. At the same time many pure play digital media businesses haven't yet demonstrated the scale some predicted. The recession has accelerated these trends but also shut off the main driver of growth over the last decade;readily available, cheap capital that enabled P/E backed M & A. So we can safely predict that a series of new media rules will emerge out of this economy; driven by the perfect storm of the recession and the continued impact of technology. We can also safely predict that all of us will be challenged to rethink our businesses. So here's our take on the 9 new rules of media:
1. Reach No Longer Equals Revenue. The new calculus is: Content Equals Engagement-Engagement Equals Revenue.
2. The Moment of Singularity in Media Has Arrived. Content and the applications and technology with which it's viewed and interacted with have become inextricably intertwined.
3. Below the Line Marketing Has Become Above the Line Marketing. The Traditional branding and advertising market has been devastated but not simply because of the recession. Branded response is replacing traditional branding.
4. Content as a Marketing Platform. Advertising is being rapidly replaced by knowledge exchange based on content.
5. Integrate, Integrate, Integrate. People naturally create their own information networks by integrating content from various sources. Make it easier for your audiences to integrate content or someone else will.
6. Live Media is the Original Social Media. Ironically live media, conferences and trade shows, showed extraordinary growth at the same time social networks were launched and started their growth curve. Live media will continue to serve as a central part of the media ecosystem.
7. Brands Matter. As Eric Schmidt CEO of Google has stated "the unbranded web is a cesspool". You will see a return to branded content as audiences and marketers drive a flight to quality and wake up from the hangover of the "User-Driven Content" era.
8. Paid Content Will Thrive. Given the amount of money the average person pays to have web access there is an inherent irony to the proclamation that the web is making all content free. People always have and always will pay for quality content. The challenge that many media companies are wrestling with is that their traditional advertising supported business model has been blown apart. When cable was launched there were dire predictions that people would never pay for television that they had been getting for free since its inception. Taken a look at your cable or satellite bill lately? We will likely see several new business models emerge but there will be a vibrant and growing paid content business.
9. Challenge the Assumptions that Made You Rich. One of the hardest things to do is to change the core strategy that built your business. Even when you see it in decline. Company philosophy and culture should sustain. Strategy and business models should evolve and in some cases be blown apart. Redefining your business to adapt to today's market is tough. Far easier to simply cut costs and hope for an economic recovery. Saving your way to greatness isn't a business model however. This economy will recover but it won't come back as a clone of the economy before it. Use this time to truly rethink your business and challenge the core assumptions in your business models.
We know for sure that innovation and change will come with the resurgent economy. What new rules do you see emerging? Any you'd add to this list?
To visit Uphoff on Media: Click Here
Aug 20, 2009
Brands do matter, but the current web structure will allow for the proliferation of "common" content wrapped in multiple brands leading to multiple user experiences resulting in increase market share, all for the same content. In other words the brand should be what the user/customer wants it to be. Brand identity wil be as much tied to the user experience as it is to the marketing message and a more intimate experience that has better fit for more people. Let's call it "micro-fit."
There are many sites you can watch media on, Youtube like sites. http://www.similarsites.com/sites-like/youtube.com
From Len Grace, Cable/Telecom/Strategist and blogger/contributor to LightReading - Cable Digital News 1. Keep it simple 2. Offer solutions to a interesting topic 3. Interact with readers and followers (that means every post) 4. Have an opinion developed on research and, (do not apologize for it) 5. Work hard and be determined to succeed
The internet is changing things all right, and we're going to need to get use to paying for some content while other forms of content will need to remain free and supported only by advertising. Google will start selling online books. You want the book in whole, you will need to pay for it. The copyright holders will receive 70% of the money from these books with Google receiving 30%. Why would you buy a book from Google? Because it's cheaper than buying it in print form, and no one is going to give these books away for free. At some point, if an author/musician/artist/etc. can't make a living from their art form, they stop publishing so they can make a living doing something else. The audience loses. People will pay for new, good, and creative content. That's why people now go to Amazon to buy DVDs of their favourite shows even though they could download a number of them (at lower quality) off the internet. Tried to download Harry Potter off the internet for free? If you can find it, before it's been order off, it's generally of very poor quality. That's the kind of content people will pay for, and we're going to see more of it. Paid content requires the creators to be competitive, to produce high quality content that people want to keep and are therefore willing to buy. This is an important distinction in determining what content people will pay for and what they won't. People must want to keep the content and thus value it enough to buy it. (It's also why copyright law must be alterred to suit this behaviour instead of criminalize it). Content which is of lower quality (i.e. a lot of user-created stuff) or content which is of a temporary nature only (i.e. news, fads, etc.) cannot survive this way because no one wants to invest in something which will be out of date in a few days. So when we're saying "be prepared for more paid content" we're really saying be prepared for more high quality content you'll gladly pay for, and be prepared to pay for it less it disappears.
"Paid Content Will Thrive" This really only applies to the iClone-types, not the smart user. And the analogy of the "cable-TV" subscriber is a bad one.Actually dumped pay-TV here as can easily access the content I actually want via bittorrent, and cloak (also using open-source tools) from prying officials! Face it... why pay over $100 dollars a month for a service which is 95% repeats?!? Free-to-air TV was a proprietary service - much of the open-source, or free to use equivalents to paid services are not. Look at internet porn as an example to Internet Capitalists; sure they made a good early buck, but the "free" community has completely sliced-and-diced its revenue stream. Don't want to pay for HD video streaming, or facilities like iTunes/Amazon.... bittorrent to the rescue, or YouTube like sites. Like that premium piece of software but can't afford the "premium" price - again, bittorent! Don't want to pay for Skype or VOIP service provider - use a messenger client, and throw in web-cam to up the anti. Sure some ppl will sign-up to "premium"/paid-for services, but don't expect FREE to go away. The fact is that the internet has been embedded as a free-for-use platform for so long in a way that free-TV never came close to, that using it as an analogy is rather pointless.