The traditional media business model relied almost exclusively on advertising revenue. Over time, subscription models became a powerful revenue driver for both newspapers and cable/satellite companies. However, new entrants have challenged these traditional media revenue models.
Although media companies remain strong due to their ability to both create and curate content, other industries are creating entertainment offerings to drive their growth. Furthermore, new market entrants have harnessed the ‘digital advantage’ and are successfully aggregating and delivering content directly to the consumer in a B2C transactional relationship. This increased pressure on media companies to compete and remain relevant has come from the consumer’s love affair with devices and the desire to be connected and entertained – anywhere, anytime on any device.
All of these factors present media businesses with challenges – but these challenges also bring enormous opportunity. Fundamental to a successful outcome is identifying key trends, leading over following and innovating from a position of strength that media owners possess.