How Consumers Hijacked the Media Model

From Marketwatch:

It is no secret that the traditional media are under assault from audiences.

Not only are some consumers not paying for content, some are displacing those heretofore assigned to create it and others are affecting the economics by their online-sharing behavior.
That additional power given to the audience is evident in the financial results of many companies.

In the magazine industry, advertising pages at Time Warner Inc.’s Time magazine were down 23.8% in 2006 from 2000, according to Publishers Information Bureau. Newsweek’s ad pages fell about 17.6% in the same period. In the newspaper industry, the New York Times stock has been halved since trading above $50 in 2002. In the music industry, sales of CDs have been declining in the last seven years and fell 20% in the first quarter of this year. Contd…

Most indian marketers and traditional media professionals would discount these as western trends. Keep in mind, indians are highly aspirational and have shown a higher affinity for technology-entertainment than most developed countries (a classic example is india’s booming Mobile VAS Industry). India’s share of global internet users has hovered between 3-4% since 2000, clearly illustrating a set of advanced users and new user growth proportionate to the rest of the planet. We’re already approaching the tipping point and distribution continues to get better (wi-lan, mobile…). While traditional media waits and watches, online media models change …real-time…by the user,
for the user, of the user!

He who laughs last, laughs loudest…


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