This document discusses how media trends are changing media businesses. It notes that screens and mobile devices are now the dominant ways people access and share media content. Established media platforms are being replaced by internet-based connections. The ability of media firms to profitably connect audiences with content is diminishing as supply of media content exceeds consumption. Media firms now operate in volatile, uncertain, complex and ambiguous environments where industry boundaries are blurred and competitive advantages change rapidly. Traditional strategic planning methods are less useful, and media companies must focus on continual innovation, learning and adaptation. The value creation of media firms also needs to change from traditional product-based models to more customer-centric service models. Stabilizing consumption and revenues are now the primary strategic
9. News organizations
headed for stormy
digital times
digital news
consumption is up, but
PAID consumption is
slowing in most
countries
70-80% of people never
intend to pay for news
paid revenue is primarily
growing through
increased product
offerings to existing
customers
digital/mobile advertising
is growing, but news
organizations are not
benefiting much
The schism is caused by competition
Local and national intermediary firms used to be necessary—newspapers, magazines, broadcasters
Primary reason for the change is that media firms no longer control the means of production and distribution of content and many more firms and individuals are producing and distributing because of the Internet and mobile platforms
