Current Event

1
Current Event
Technology How Old Media Can Survive in a New
World
WSJ. (Eastern Edition) May 23rd, 2005
Television Networks
News Media
Music Companies
Book Publishing
Movie Studios

• Traditional media businesses are struggling due
  to the e digital revolution and trying to adapt
  to what todays digital generation is wanting .

• These industries are not as profitable as they
  used to be and they must use applied research to
  stress the need for market information if they
  want to be profitable.

2
How can they find a Solution ?

• Intensify their research and development programs
  with regards to
• Identify and Evaluate the best opportunities in
  their changing media markets, and strive to be
  the first to capitalize on that opportunity.

3
News Media
Network News
- The nightly news or evening news, either
national or local, are losing both their
esteem and viewers to the 24 hour news channels
like CNN, MSNBC, and FoxNews, plus internet news,
blogs and email alerts.
- Since 1991, ABC, NBC, and CBS have had a 28.4
decline in total viewers, according to Nielsen
Media Research.
Newspapers
- They have lost readership because of 24 hour
news channels, and digital internet news. A
recent circulation drop of 1.9 over six months
was the largest decline in almost a decade.
4
Newspaper Circulation Graph
5
News Media

• Experts suggest that newspapers and networks use
  a more personal news approach in their
  presentation catering to societys growing
  preference for digital media.

• Full unedited interviews posted online
• Behind the scenes clip shows of news programs
• 24 hour internet web broadcasts, such as ABC
  News Now, recently created less than a year ago.
• Partnering with mobile technology companies to
  deliver streaming and real time news to cell
  phones, organizers and even playstations.

6
Network Television
- The six biggest networks include ABC, NBC, Fox,
CBS, UPN, and the WB. They face a variety of
competition in the ascent of broadband and
wireless technologies.

• A growing variety of cable channels
• Videogames
• Growing DVD popularity
• Satellite Radio
• HDTV and digital video recorders like TiVo

- In 1978, the three original broadcast channels
(ABC, NBC, CBS) retained about 90 of their
primetime audiences, compared to less than 50
today.
7
Network Television
8
Network Television

• Currently the three largest networks deliver 22
  hours a week of prime time programming.

• Experts suggest limiting their total schedule to
  only 15 hours instead of 22, saving the cost of
  expensive shows that dont often succeed anyway.
• Instead of network shows, local affiliates could
  run cheaper programs in news, game shows, and
  sitcoms, ultimately resulting in higher
  profitability.

9
Book Publishers

• Problems
• Winning over the younger generation
• Children and young adults spend most of their
  time on their computer and playing video games
• The national Endowment of the arts found the
  biggest literacy decline between the years
  1982-2002 was the youngest age groups

10
Book Publishers

• Book Publishers can compete by
• Sending authors to schools so the process of
  writing is more clear to students
• This can create future readers
• They can discuss the books with the author to
  stimulate their reading

• Digital audio books
• Students can download any book onto an iPod,
  other MP3 players, and cell phones
• This will create a new base for publishers and
  connect to the younger generation

11
Book Publishers

• Connecting to a readers culture
• Kids want to read about their culture
• Publishers need to find stories that reflect
  other cultures traditions

12
Movies

• Problems
• DVD bootleggers reduce the amount of customers
  that go to the movies
• There is a variety of at home entertainment
  alternatives
• Studios have yet to come up with the next
  generation of DVDs
• Viewers loose interest in movies by the time they
  come out on DVD

13
Movies

• Movies can compete with new technology
• Theaters can become out of home entertainment
  hubs by providing viewings of sporting events,
  live concerts, and even video game events

• Luxury reserved seating
• More room a cocktail service during the movie
• Comfortable chairs Moving chairs that coincide
  with the action of the movie

• NO more DVDs - Movie down loading service
• Download movies right to their television or
  portable player so they can be watched at any time

14
Music

• Problems
• File sharing companies allow internet users to
  swap songs illegally
• People can download and burn albums instead of
  buying the cd

15
Music

• How music can compete with new technology
• Computer and cell phone sales
• Right now they make up only 2 of sales but it is
  likely to climb to 20
• Make cell phones into an MP3 player
• About 80 million cell phones where sold last year
  
• Takes away from carrying extra electronic devices
• A cell phone can be like a music store

16
Music

• Their own file sharing
• Start a file sharing network that consumers can
  download any song they want for a small fee
• This allows consumers to still download music at
  home, but legally

• Sell cds with a DVD of the music video's
• Let the artists be seen more in public
• Make a music channel that only plays music videos