The New Media Economy
80
The New Media Economy J.Sims June 2009
-
date post
20-Oct-2014 -
Category
News & Politics
-
view
1.263 -
download
4
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 of The New Media Economy
The New Media Economy
J.SimsJune 2009
Media 1.0 Media 2.0
Scarcity Abundance
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
ScarceMedia
AbundantAttention
AbundantMedia
ScarceAttention
Price
Quantity
Supply
Demand
Basic Supply and Demand
Price 2
Quantity
Supply
Demand
Media 1.0 Supply and Demand
Demand 2
Price
Umair Haque
Media 1.0 = The Age of the Blockbuster
Price
Quantity
Supply
Demand
Media 2.0 Supply and Demand
Media 2.0 Supply
Media 2.0 DemandMedia 2.0 Price
HYPERDEFLATION
Media 2.0 = the End of the Blockbuster Age.
And the beginning of the Age of Snowballs.
Aggregators
Micro-platforms
Re-constructors
Blog PostYouTube Video
Star ArticleInfluential
Blogger Aggregator High Traffic Site
Value
Output
Blockbuster Growth
Cinema
DVD
TV
Consumer Goods
Value
Output
Blockbuster Growth
The Star
Metro
Thestar.com
Email marketing, etc.
Value
Output
Snowball Growth
Micro Content
Blogger
Aggregator
High Traffic Site
Micro Content
coolhunting
Nypost.com
Nytimes.com
Bloggers
Micro Content
InfluentialBloggerDigg
Today Show
Amazon
The growth of snowballs requires
user engagement and community.
Clay Shirky
Digital Natives Expect to:
• Interact with• Contribute to• Organize • and Share
the media they interact with .
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
This seems like chaos.
News Ecosystem
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
Media 1.0• Closed• Dominant• Portal
Media 2.0
• OpenEconomies:• distribution• coordination• production
Sources of Competitive Advantages in Media 2.0
Quantity: Aggregate more than competitors.
Quality: Micro-differentiate more narrowly than competitors.
2 Roles for News Organizations in the Media 2.0
Economy
Curate the News Ecosystem
Create vertical content sites
Revelation – what’s good?
Aggregation – elegant organization
Plasticity – let me make it my ownRSS Feeds
For the Star to thrive in the Media 2.0 world, we will need to make
some key strategic changes.
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.
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
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
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
Mass Niche/Vertical
Why Verticals?
Smart aggregators will consolidate horizontally and fragment vertically.
- Umair Haque
Separate brands enable us to attract new audiences and to
expand the verticals nationally.
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
Advertisers prefer contextual environments because they provide a
higher return on investment.
Featured Advertiser Text Link
Home Page of the Star: 0.02% CTR
Parentcentral: 0.17% CTR
Display Ad
thestar: 0.08% CTR
Parentcentral: 0.16% CTR
Catfish Ad
Toronto.com: 0.5% CTR
Yourhome: 4.3% CTR
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
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
In short:
The economics of media have shifted.
Scarcity and abundance have flipped.
Where mass was once king, now we see a mass of niches on the web.
This has caused hyperdeflation in media value and the end of the blockbuster age.
Hyperdeflation is countered by the snowball effect.
Snowballs are pieces of micro-content.
The old media blockbuster economy was built on exclusion.
The new snowball economy is built on being open to aggregators, micro-platforms and re-constructors.
And by capitalizing on economies of distribution, coordination and production.
As curators of the news ecosystem, we can provide three kinds of value.
Revelation – What’s good?
Aggregation – Elegant organization
Plasticity – Let me customize your content to meet my needs
This new economy requires radically different product strategies.
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.
www.simsblog.typepad.com
Want More?
Here Comes Everybody – Clay Shirky
What Would Google Do – Jeff Jarvis
Grown Up Digital – Don Tapscott
Crowdsourcing – Jeff Howe
