the new media economy
Post on 20-Oct-2014
1.263 views
DESCRIPTION
My presentation on how news organizations must adapt to the new media economy. For slide by slide commentary, visit www.simsblog.typepad.com.TRANSCRIPT
![Page 1: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/1.jpg)
The New Media Economy
J.SimsJune 2009
![Page 2: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/2.jpg)
Media 1.0 Media 2.0
![Page 3: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/3.jpg)
Scarcity Abundance
![Page 4: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/4.jpg)
Online Newspaper Visit: 10 Mins
Print Newspaper: 40 Mins
TV Show: 30 – 60 Mins
Avg Youtube video: 3.5 Mins
Twitter Post : 140 characters
Blog Post: 3-10 Paragraphs
![Page 5: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/5.jpg)
ScarceMedia
AbundantAttention
![Page 6: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/6.jpg)
AbundantMedia
ScarceAttention
![Page 7: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/7.jpg)
Price
Quantity
Supply
Demand
Basic Supply and Demand
![Page 8: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/8.jpg)
Price 2
Quantity
Supply
Demand
Media 1.0 Supply and Demand
Demand 2
Price
![Page 9: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/9.jpg)
Umair Haque
Media 1.0 = The Age of the Blockbuster
![Page 10: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/10.jpg)
Price
Quantity
Supply
Demand
Media 2.0 Supply and Demand
Media 2.0 Supply
Media 2.0 DemandMedia 2.0 Price
HYPERDEFLATION
![Page 11: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/11.jpg)
Media 2.0 = the End of the Blockbuster Age.
![Page 12: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/12.jpg)
And the beginning of the Age of Snowballs.
![Page 14: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/14.jpg)
Aggregators
Micro-platforms
Re-constructors
![Page 15: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/15.jpg)
Blog PostYouTube Video
Star ArticleInfluential
Blogger Aggregator High Traffic Site
![Page 16: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/16.jpg)
Value
Output
Blockbuster Growth
Cinema
DVD
TV
Consumer Goods
![Page 17: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/17.jpg)
Value
Output
Blockbuster Growth
The Star
Metro
Thestar.com
Email marketing, etc.
![Page 18: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/18.jpg)
Value
Output
Snowball Growth
Micro Content
Blogger
Aggregator
High Traffic Site
![Page 19: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/19.jpg)
Micro Content
coolhunting
Nypost.com
Nytimes.com
Bloggers
![Page 20: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/20.jpg)
Micro Content
InfluentialBloggerDigg
Today Show
Amazon
![Page 21: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/21.jpg)
The growth of snowballs requires
user engagement and community.
![Page 22: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/22.jpg)
Clay Shirky
Digital Natives Expect to:
• Interact with• Contribute to• Organize • and Share
the media they interact with .
![Page 23: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/23.jpg)
![Page 24: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/24.jpg)
![Page 25: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/25.jpg)
Snowball Price
Quantity
A growing number of snowballs pushes the demand curve up
The Snowball Economy
Media 2.0 Supply
Media 2.0DemandMedia 2.0 Price
Lower Demand for Blockbusters
![Page 26: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/26.jpg)
This seems like chaos.
![Page 27: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/27.jpg)
News Ecosystem
![Page 29: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/29.jpg)
![Page 30: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/30.jpg)
![Page 31: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/31.jpg)
Smart Aggregator
Reconstructor
Entry EntryEntry
Microplatform
Blog BlogBlog
Comment
Personal Cast Personal Cast Personal Cast
Entry EntryEntry
Entry EntryEntry
Selected Micromedia Selected Micromedia Selected Micromedia
Entry EntryEntry
Blog BlogPersonal Cast
Entry
Blog
Comment
![Page 32: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/32.jpg)
Media 1.0• Closed• Dominant• Portal
Media 2.0
• OpenEconomies:• distribution• coordination• production
![Page 33: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/33.jpg)
Sources of Competitive Advantages in Media 2.0
Quantity: Aggregate more than competitors.
Quality: Micro-differentiate more narrowly than competitors.
![Page 34: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/34.jpg)
2 Roles for News Organizations in the Media 2.0
Economy
Curate the News Ecosystem
Create vertical content sites
![Page 35: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/35.jpg)
Revelation – what’s good?
![Page 36: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/36.jpg)
Aggregation – elegant organization
![Page 37: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/37.jpg)
Plasticity – let me make it my ownRSS Feeds
![Page 38: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/38.jpg)
For the Star to thrive in the Media 2.0 world, we will need to make
some key strategic changes.
![Page 39: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/39.jpg)
Inside Out Outside In• Star staff are the only voices on the site • One-way conversations
• “Authority”
• The site as a community • Listen well to our users
• Users and editors collaborate to create the site experience
• Commenting, discussion, polling, user suggestions on story ideas, questions for interviewees, etc.
![Page 41: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/41.jpg)
![Page 43: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/43.jpg)
![Page 44: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/44.jpg)
![Page 45: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/45.jpg)
![Page 46: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/46.jpg)
![Page 47: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/47.jpg)
![Page 48: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/48.jpg)
![Page 49: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/49.jpg)
![Page 50: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/50.jpg)
Ownership Curation• All content on the site is produced by Star editors and freelancers
• Bring elegant organization to info on the web • Finding what’s good requires excellent knowledge of our users, what they want and what works online
• Stop paying for content that the web is already generating for us • Do what we do best and link to the rest
![Page 51: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/51.jpg)
Closed Ecosystem• Us against them mentality with other sites
• Linking to competitors, community bloggers, government sites, data and map sites
• Working with smaller local sites and blogs to form advertising networks
![Page 52: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/52.jpg)
![Page 53: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/53.jpg)
Product Service
• Stories and articles professionally produced and packaged for delivery to an audience
• Data, tools, links and content serve as a platform for discussion and interaction
• Applications are created to allow for the syndication and distribution of the content across the web
![Page 54: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/54.jpg)
Mass Niche/Vertical
![Page 55: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/55.jpg)
Why Verticals?
Smart aggregators will consolidate horizontally and fragment vertically.
- Umair Haque
![Page 56: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/56.jpg)
Separate brands enable us to attract new audiences and to
expand the verticals nationally.
![Page 57: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/57.jpg)
The verticals are designed to be the ultimate resources for homes, health and parenting information in the GTA.
• News and information• Blogs • Data• Listings• Local, national and classified
advertising
![Page 58: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/58.jpg)
![Page 59: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/59.jpg)
Advertisers prefer contextual environments because they provide a
higher return on investment.
![Page 60: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/60.jpg)
Featured Advertiser Text Link
Home Page of the Star: 0.02% CTR
Parentcentral: 0.17% CTR
![Page 61: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/61.jpg)
Display Ad
thestar: 0.08% CTR
Parentcentral: 0.16% CTR
![Page 62: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/62.jpg)
Catfish Ad
Toronto.com: 0.5% CTR
Yourhome: 4.3% CTR
![Page 63: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/63.jpg)
Nov Dec Jan Feb Mar Apr
Living Verticals revenue
On average, revenue from the Verticals is 115% higher than revenue in the Living
section of thestar.com
![Page 64: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/64.jpg)
Nov Dec Jan Feb Mar Apr
Entertainment TDC revenue
On average, Toronto.com national revenue is 367% higher than revenue attributed to the
entertainment section of thestar.com
![Page 65: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/65.jpg)
In short:
![Page 66: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/66.jpg)
The economics of media have shifted.
![Page 67: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/67.jpg)
Scarcity and abundance have flipped.
![Page 68: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/68.jpg)
Where mass was once king, now we see a mass of niches on the web.
![Page 69: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/69.jpg)
This has caused hyperdeflation in media value and the end of the blockbuster age.
![Page 70: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/70.jpg)
Hyperdeflation is countered by the snowball effect.
![Page 71: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/71.jpg)
Snowballs are pieces of micro-content.
![Page 72: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/72.jpg)
The old media blockbuster economy was built on exclusion.
![Page 73: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/73.jpg)
The new snowball economy is built on being open to aggregators, micro-platforms and re-constructors.
![Page 74: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/74.jpg)
And by capitalizing on economies of distribution, coordination and production.
![Page 75: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/75.jpg)
As curators of the news ecosystem, we can provide three kinds of value.
![Page 76: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/76.jpg)
Revelation – What’s good?
Aggregation – Elegant organization
Plasticity – Let me customize your content to meet my needs
![Page 77: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/77.jpg)
This new economy requires radically different product strategies.
![Page 78: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/78.jpg)
Letting the outside in.
Curation rather than ownership.
Becoming part of the ecosystem.
Viewing the site as a service rather than a product.
Moving from mass to vertical.
![Page 79: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/79.jpg)
www.simsblog.typepad.com
![Page 80: The New Media Economy](https://reader033.vdocument.in/reader033/viewer/2022061106/5444dfd1b1af9f4b6c8b45af/html5/thumbnails/80.jpg)
Want More?
Here Comes Everybody – Clay Shirky
What Would Google Do – Jeff Jarvis
Grown Up Digital – Don Tapscott
Crowdsourcing – Jeff Howe