Global Media Trends Media 1.0 to Media 2.0 Amit G. Tekale Date: 26.03.2007 Sakaal Confidential Proprietary .

TO START WITH…

NORTH AMERICA Print TV Online Mobile

SOUTH AMERICA $ Print TV Online Mobile

AFRICA Print TV Online Mobile

ASIA Print TV Online Mobile

EUROPE Print TV Online Mobile IPTV Web Radio Web TV Mobile TV

PLAY ANYWHERE HDTV UMPC iPod Mobile TV IPTV Web TV

MEDIA 1.0: MASS MEDIA Media Two-sided Market Audience Advertiser Demand Supply Demand Supply Production Attention

THE MYTH The Media Industry’s First Law: Attention is scarce Is this accurate? Attention has always been getting absolutely scarcer as media grows

The Media Industry’s First Law: Attention is scarce

Is this accurate?

Attention has always been getting absolutely scarcer as media grows

THE TRUTH In fact… Attention has remained relatively abundant for many years What!? How can we prove this? By asking how great the risk of losing audience actually is The real problem facing the media industry A zero-sum game: media’s grown quantitatively and qualitatively, but attention hasn’t

In fact…

Attention has remained relatively abundant for many years

What!? How can we prove this?

By asking how great the risk of losing audience actually is

The real problem facing the media industry

A zero-sum game: media’s grown quantitatively and qualitatively, but attention hasn’t

MEDIA 2.0: THE AGE OF ELASTICITY Media 2.0 is elastic Can be reshaped, remixed, tweaked, cut, split… … and aggregated, filtered, distributed, delivered, stored… … almost any way/to any time/at any place consumers prefer

Media 2.0 is elastic

Can be reshaped, remixed, tweaked, cut, split…

… and aggregated, filtered, distributed, delivered, stored…

… almost any way/to any time/at any place consumers prefer

MEDIA 2.0: THE AGE OF ELASTICITY Elasticity makes Media 2.0 personal No clear distinction between professional and amateur media… … because all media can be unbundled / rebundled The distinction shifts from professional/amateur to mass/personal It is not broadcasting; it is broad catching! Media is now becoming Micromedia! MEDIA MICROMEDIA MICROMEDIA MICROMEDIA MICROMEDIA MICROMEDIA MICROMEDIA

Elasticity makes Media 2.0 personal

No clear distinction between professional and amateur media…

… because all media can be unbundled / rebundled

The distinction shifts from professional/amateur to mass/personal

It is not broadcasting; it is broad catching!

Media is now becoming Micromedia!

WHAT IS MICROMEDIA? Micromedia is… Media that can be consumed in unbundled micro chunks… Micro chunks of media unbundled from traditional media goods Blogs vs newspaper articles Tracks vs albums Vlogs vs network news ..and aggregated and reconstructed in hyper efficient ways Blogs, vlogs, podcasts, mp3 tracks, RSS feeds Micromedia can be unbundled and rebundled for consumers… E.g. Blog entries can be aggregated and reconstructed by topic Micromedia explodes media supply The total quantity of media goods explodes … And atomizes it The average size of media goods shrinks

Micromedia is…

Media that can be consumed in unbundled micro chunks…

Micro chunks of media unbundled from traditional media goods

Blogs vs newspaper articles

Tracks vs albums

Vlogs vs network news

..and aggregated and reconstructed in hyper efficient ways

Blogs, vlogs, podcasts, mp3 tracks, RSS feeds

Micromedia can be unbundled and rebundled for consumers…

E.g. Blog entries can be aggregated and reconstructed by topic

Micromedia explodes media supply

The total quantity of media goods explodes

… And atomizes it

The average size of media goods shrinks

MICROMEDIA DRIVERS What drives the micromedia explosion? Technology Falling barriers to production Mobile Camera Unbundling: Falling barriers to distribution & retail Blogs, peer2peer, Bluetooth, Bit Torrent, convergence of connectivity & platforms … And retail/distribution channel growth and fragmentation Cinema v/s VHS, DVD, VCD, MPEG, YouTube Changing consumer preferences The rise of connected consumption v/s disconnected consumption The rise of peer production

What drives the micromedia explosion?

Technology

Falling barriers to production

Mobile Camera

Unbundling: Falling barriers to distribution & retail

Blogs, peer2peer, Bluetooth, Bit Torrent, convergence of connectivity & platforms

… And retail/distribution channel growth and fragmentation

Cinema v/s VHS, DVD, VCD, MPEG, YouTube

Changing consumer preferences

The rise of connected consumption v/s disconnected consumption

The rise of peer production

DISCONNECTED CONSUMPTION Investors Customers Prospects Press/Analysts Partners Employees Potential Employees Influencers MESSAGES Competitors

CONNECTED CONSUMPTION Investors Customers Prospects Press/Analysts Partners Employees Potential Employees Influencers MESSAGES Competitors

MICROMEDIA PLATFORMS

DISRUPTIVE MICROMEDIA

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SOCIAL AND MAINSTREAM MEDIA How can you best draw on social networks for content and ideas? How can you facilitate social media commenting on and interpreting your content?

How can you best draw on social networks for content and ideas?

How can you facilitate social media commenting on and interpreting your content?

CONSUMER BECOMING CREATOR Who is more important in your business model – consumer or creator? How can you encourage consumer to become creator?

Who is more important in your business model – consumer or creator?

How can you encourage consumer to become creator?

CONTENT FILTERATION What configuration of user and media content generation and filtering will you select? In particular, how will you implement user filtering?

What configuration of user and media content generation and filtering will you select?

In particular, how will you implement user filtering?

FORMAT SHIFTING To what degree - and how - do you impede or facilitate the shifting of time, space, and format to user-controlled formats? What format innovations will you experiment with to discover the winning media formats of the next decade?

To what degree - and how - do you impede or facilitate the shifting of time, space, and format to user-controlled formats?

What format innovations will you experiment with to discover the winning media formats of the next decade?

REVENUES Are media content and classifieds natural partners, and if so how do you connect these effectively? Where are the aggregation points into which you can bring together or deliver highly relevant advertising?

Are media content and classifieds natural partners, and if so how do you connect these effectively?

Where are the aggregation points into which you can bring together or deliver highly relevant advertising?

NEW WAYS OF CONTENT DELIVERY How can you leverage your presence in devices to content distribution or vice versa? How will you participate in the massive boom of video content demand?

How can you leverage your presence in devices to content distribution or vice versa?

How will you participate in the massive boom of video content demand?

GLOBAL + LOCAL How global or local in interest is your current content and distribution? What degree of localization is required in content, format, and distribution, and what capabilities or alliances are necessary for this?

How global or local in interest is your current content and distribution?

What degree of localization is required in content, format, and distribution, and what capabilities or alliances are necessary for this?

END QUOTE “ Information and communications technology unlocks the value of time, allowing and enabling multi-tasking, multi-channels, multi-this and multi-that.” Li Ka Shing Chairman of Hutchison Whampoa Limited (HWL) IPTV

“ Information and communications technology unlocks the value of time, allowing and enabling

multi-tasking,

multi-channels,

multi-this and

multi-that.”

Li Ka Shing

Chairman of Hutchison Whampoa Limited (HWL)

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