it’s no longer the same business contemporary media trends and strategic decision making robert g....

It’s no longer the same businessContemporary media trends and strategic decision making Robert G. Picard

Reuters Institute, University of Oxford

Screens are now the primary technologies for media content and communication

Copyright © 2015 Robert G. PicardAll rights reserved.

Mobile is now the dominant means for interpersonal and media communication


Social networking is changing some media activities into interpersonal communication


Media consumption and use has become more individualized and active


Established media platforms are being supplanted by Internet-based connections


Supply of media content far exceeds ability of the public to consume what is offered


Ability of firms to profitably connect audiences with content is diminishing


News organizations headed for stormy digital timesdigital 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

Media firms are struggling to find strategies for operating in VUCA environments

•volatileV•uncertainU•complexC•ambiguousA


Characteristics of VUCA environments

Indistinct industry boundaries•Unclear who the competitors are•Overlapping products/services •Challenges in defining the industry

Corporate structures in flux•Organizational boundaries changing•New work arrangements increasing flexibility•Increasing cooperation with competitors, suppliers, and distributors

Rapid changes in sources of competitive advantage•Evolving technologies•Shift to service orientation; assets becoming liabilities•Much imitation and adaptation by competitors


Traditional strategy methods are less useful today

The market maze changes constantly and rapidly


You can’t plan your route, only how you will try to find it

Continual innovation, learning, and adaptation

How does a media company get to a sustainable competitive position?


The value creation perspective of media firms has to change to be successful

Traditional media product and advertising activities•Goods logic•Company-centric approach•Sell products and audiences•Sales- and exposure-based performance

Business-to-consumer and business-to-business media activities•Service logic•Customer-centric approach•Co-production of service•Sales, customer interaction orientation


Stabilizing consumption and revenues are the primary strategic objectives

Strategic tipping points for print media enterprises in the digital era

1


already the case for many news

orgs

some magazines and papers

nearing

a few magazines have reached this

poiht

already the case for some papers and

magazines

Strategic tipping points in the digital era for broadcast/cable media enterprises

1

already the case for cable

channels

some networks are close to

this


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it’s no longer the same business contemporary media trends and strategic decision making robert g....

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media consumption

media activities

media communicationcopyright

media company

supply of media content

print media enterprises

established media platforms