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New Digital Media Business Models

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Prof Guy Berger explores the new business models emerging from new media

Prof Guy Berger explores the new business models emerging from new media

Published in: Business, News & Politics

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  • 1. New digital business models Guy Berger, Highway Africa conference 9 September 2008
  • 2. Take a test… who are:
    • Jimmy Wales?
    • Tip: Volunteers create free content.
    • Mark Zuckerberg?
    • Tip: Friends make him money.
    • Craig Newmark?
    • Tip:Free service killing a class!
    • Larry Page and Sergey Brin? Tip: Sidewinders.
    • Stafford Masie? He’s in this country!
  • 3. On the agenda
    • First world trends – a yawning international digital divide: but no time to feel sleepy !
    • Changing industry, audiences in First World.
    • Media’s business model is breaking up.
    • New architecture of Information Society.
    • Mobile – Africa’s answer?
  • 4. 1. First World Trends
  • 5.  
  • 6. At a conference in May in LV:
    • Selling Online Using Market-Specific Research
    • E-Commerce Revenue Solutions
    • Great Interactive Ideas
    • Social Networking - How to Build it, Grow it and Bring in the Bucks
    • Serving Readers & Advertisers thru Search Marketing
    • Managing Citizen Commentary and Contributions
    • 5 Things You Should Do in 2008 to Immediately Improve Your Web Site
  • 7. Who convened it?
    • SUBURBAN NEWSPAPERS OF AMERICA
  • 8. So why that online focus?
    • Report: State of the News Media 2008:
    • Newspapers in USA ended 2007 with 8.4% less circulation daily, 11.4% less Sunday than 2001.
    • Plus, print newspaper ad revenues experienced their worst drop in more than 50 years.
    • Network news programs averaged 23.1 million viewers a night, a drop of 5%, on 2006.
  • 9.
    • Here’s one response to the pressure:
  • 10.  
  • 11. During the past 7 months, 4,500 posts have been cut at U.S. papers: http://snurl.com/3047y
  • 12.  
  • 13. For some: a shift in resources…
  • 14.  
  • 15.  
  • 16. How they got there…
    • Web was first seen by newspapers as a Stranger .
    • Then as a Source …
    • Subsequently as Subversive (a threat).
    • Now it is seen as a Strategic ally…
    • Could it become a Saviour ?
    • And what about the mobile web ?
  • 17. 2. Existing business model is breaking up.
  • 18. Where it all began:
    • Media content untied from physical formats.
    • = it’s all data – with scores of possible platforms to play out on.
    • And: EXPLODING of traditional horizontal integration of processes formerly under the control of one media house.
    • IT WAS: { Info gathering – editing – packaging – dissemination – loyal audience } .
  • 19.
    • Info gathering: DISTRIBUTED
      • UGC; “import” via embedded links
    • Editing: DISTRIBUTED
      • Global outsourcing, User editing and ranking
    • Packaging: DISTRIBUTED
      • Multi-purposed platforms, 3 rd party aggregators
    • Distribution: DISTRIBUTED
      • RSS, others’ platforms, get users to circulate
    • Consumption: DISTRIBUTED
      • Links, Search engine based; Recommendation
    Unbundled, Disarticulated, Dispersed
  • 20. Dissolution of BUSINESS MODEL!
    • As audiences shift, ad revenue doesn’t parallel.
    • “ The crisis in journalism may not strictly be loss of audience. It may, more fundamentally, be the decoupling of news and advertising.”
  • 21. Why?
  • 22. 4. New architecture of Information Society.
  • 23. brought to you by Open Source + Internetisation + Mediatisation
  • 24.  
  • 25. Eyeballs and economics
    • Content devalued by supply of online content including user-generated content, a bunch of which includes content created by people who don't care if they get paid for its creation.
    • = Information is not a scarce commodity; … what is scarce is the human attention – especially on making sense of it.
    • SOLUTION: social network recommendations;
    • +: MORE info (tags, and geo-data) = workflow!
  • 26. 5. Salvation of journalism?
  • 27. Our future… mobiles
    • A media(?) device that’s growing & impacting on:
    • Habits : DVB-H & 2010 will drive conversion of cellphones from interpersonal comms to an interactive mass media device.
    • New opportunities: whole new market for location-based journalism services.
    • Business model : mix of pay-in-advance, rentals, data charges, ads, free, UGC.
  • 28. Get planning
    • “ There is a very big disconnection between optimistic thinking about the future newsroom and the preparation , training and resources that editorial organisations seem to be giving to it.” George Brock (WAN)
    • No time to be digitally dozy !