A Look At Emerging Business Models

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A Look At Emerging Business Models
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Emerging Business Models

• Traditional media are struggling to adapt their
  old business models to respond to the devastating
  effects of disruptive, digital technologies,
  while a new generation of media companies is
  creating fresh, innovative new models. Will those
  efforts result in profitable businesses that
  would finance journalism as it happened during
  the last century?
• Chair Neal Burns, Professor, Advertising
  Department, UT Austin,
• Richard Anderson, President and CEO,
  Villagesoup.com
• Staci Kramer, Co-Editor of ContentNext
  Media/PaidContent.org
• Ken Riddick, Vice President, Digital Media,
  Hearst Newspapers
• Michael Smith, Executive Director, Media
  Management center, Northwestern University

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Traditional Media What Was

• Broadcast networks
• Limited in number
• Virtually monopolistic
• Categorical Separation
• Radio/Press/TV
• Balkanization of New Media
• (lack of interoperability)

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Traditional Media Now

• Traditional media operators are concerned --
  losing customers, losing ad revenue . . . Yet,
  raising prices while delivering fewer eyeballs
  and ears.
• Banks and investors look at these operators with
  a bit of a jaundiced eye.
• As alternative media platforms and resources come
  into play -- and gain customers/traction -- less
  market capital for traditional media.

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The Market Then and Now

• There were dozens of markets with millions of
  persons in each.
• Now there are millions of markets and about a
  dozen persons in each.
• Its not about execution or creative excellence
  -- now its about relevance.

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Convenience, Control, Choice (C3)

• Shifting from interruption to engagement
• Watch what they want, when they want and where
  they want.
• C3 shows up in
• media usage
• In the 90s gt 7 hrs/d
• 2008 gt 10.5 hrs/d
• Spending on alternative media hit 73.43 billion
  in 2007, a 22 increase over 2006.

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Plague on Both Houses

• Google and broadcast networks have a problem
  over which they can both commiserate declining
  use numbers.
• Googles slower growth in paid clicks -- growing
  37 monthly six months ago, grew only 3 in
  February and showed no growth in January. Its an
  abrupt halt to Googles meteoric growth
  trajectory.

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Key Trends

• Top 10 news Web sites have a larger share of
  audience than legacy media.
• News is shifting from being a product  to
  becoming a service.
• News consumption is continual (e.g., screen
  banners), periodically engaging -- analytical and
  interpretive finished news product not done.

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at the end of the day . . . from our panelists .
. .

• Good sense of current status
• Likely outcomes in the near term
• Can we monetize news today ?
• Should professional news organizations sponsor
  co-creation (CGC)?
• Any models for strategic and executional
  leadership?