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Navigating the Media Divide: Innovating and Enabling New Business Models

Get ready for the coming collision between incumbent content owners and media distributors.
IBM Institute for Business Value study
Last updated: 15 Feb 2007
   Download complete IBM Institute for Business Value study ( 551KB )
Summary

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Summary

The worlds of traditional and new media are already clashing, and it’s a conflict that continues to expand. However, a second type of conflict is brewing – one that could cause major rifts among traditional partners. For media companies, it’s time to pursue different and somewhat opposing business models…and navigate the media divide.

A new media world has arrived. Pioneered by teens and gadget-savvy professionals, it has quickly spread into virtually every consumer segment, and started to encroach on traditional media. The number of unique visitors to MySpace.com has now surpassed the 50 million mark – something akin to the number of U.S. households that tune into the Super Bowl.1 Every day, consumers around the world watch about 100 million videos on YouTube – putting that number in context, the top 15 British primetime television shows combined attract about 100 million viewers, as do the top 4 U.S. shows.2

To examine the inherent tension between new and traditional media and explore future industry scenarios, we conducted a comprehensive study that included interviews with leaders of media companies and an in-depth analysis of the factors that are shaping the industry outlook.


To read the full study, download the PDF file at the top of this page.

 

References
1 "Social Networking Sites Continue to Attract Record Numbers as Myspace.Com Surpasses 50 Million U.S. Visitors in May." comScore Networks press release. June 15, 2006; "Super Bowl 2nd-most watched show ever." The Associated Press. February 7, 2006.
2 "YouTube serves up 100 million videos a day." Reuters. July 16, 2006; Broadcasters Audience Research Board, "Weekly Viewing Summary" for week of November 13, 2006; Nielsen Media, "Top TV Ratings: Top Ten Broadcast TV Programs for the week of November 13, 2006 (Live + SD)."

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About the authors
iDr. Saul J. Berman
Dr. Saul J. Berman, Global Strategy Leader, Media and Entertainment Industry, IBM Global Business Services
iSteven Abraham
Steven Abraham, Global Leader, Media and Entertainment Industry, IBM Global Business Services
iBill Battino
Bill Battino, Americas Leader, Media and Entertainment Industry, IBM Global Business Services
iLouisa Shipnuck
Louisa Shipnuck, Global Leader, Media and Entertainment Industry, IBM Institute for Business Value
iAndreas Neus
Andreas Neus is the IBM Institute for Business Value European Media and Entertainment Leader.
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