What our respondents have realised is that the expanding presence of YouTube, MySpace and the rest is just the first tremors heralding the creation of a whole new landscape: a media content environment that is even more fragmented than it is today, and in which the balance of control and power shifts increasingly away from the established producer and towards the user. What does this mean for established media organisations? Essentially that the full impact of the digital revolution has yet to come − and they had better be ready. So far, this revolution has been primarily about exploiting new digital ways of distributing what they already have. But now they face the far greater challenge of adapting and developing entirely new business and monetisation models as a prerequisite for keeping their revenues flowing. Rather than continuing to push existing content down new pipes, this will mean identifying new forms of content that can harness changing media consumption habits while simultaneously complementing their own traditional strengths. And it remains to be seen what these new forms will be. One of our scarier statistics for the major studios is that 53 percent of our respondents think “short form content” offers the greatest opportunities for new content going forward, against just 11 percent voting for “long form” or “full length” video content (greater than 60 minutes). Given the shrinking attention span of today’s teenage consumer, maybe Andy Warhol’s 15 minutes of fame is finally here. The comments from executives in our research show that many organisations are already responding. “We will look to the user side and learn from the YouTubes and the MySpaces who are training consumers in media usage,” says an executive at Reed Publishing. Roger Faxon, chief executive of EMI Music Publishing, echoes this view, saying the music industry is moving “from a sales model to a consumer consumption model or participation model, where its economics are predicated on the use patterns of consumers as opposed to the purchase patterns.” This shift causes some to question whether traditional media will still exist in a few years' time. While the answer is likely to be ‘yes’, what is clear is that it will be just one part of a much wider and more diverse kaleidoscope of content. And if you think content is under pressure, just look at platforms. With over 60 percent of executives looking to ‘new platforms’ as the most important key to growth, and precious few believing that the Web 2.0 'bubble' will burst, the race is on to work out how mobile and online digital platforms will work with traditional media in the future. Another of our survey participants, WPP Group chief executive Sir Martin Sorrell, believes technological change and the consolidation of digital and non-digital business models will have a dramatic impact on the media and entertainment industry over the next five years. "The winners will be those who can probe and analyse the changes and manage and merge on-line and the off-line most successfully," he said. For broadcasters, these dramatic shifts in content and platforms are set to converge − driving greater choice for consumers. Richard Halton, Controller of Business Strategy for the BBC, says: “I think there will be a fundamental shift in the way that people consume content. They will be looking to consume content on their terms, and in forms and shapes and platforms that suit their needs.” However, he adds that different social groups will move at very different speeds. It is axiomatic that where eyeballs go, advertising follows. Half of executives (compared to 38% in 2006) indicated that advertising could grow to become the most prevalent business model in the industry within five years, with digital advertising driving growth. So it ultimately comes down to content. Tomorrow’s successful content providers will realign themselves and their content with changing consumer behaviour. Our research and experience show that the organisations leading the way are following four simple rules of engagement. First, they are not ‘precious about their content, making it readily available and accessible. Second, they harness all available technologies to enhance the consumer experience. Third, they are keenly aware of the potential of niche content for building audiences. And four, they exploit UGC for new talent. The world has changed. But for media owners, media agencies and advertisers, the change has only just started. Return to Summary |