Reflections on Prof. Hanson Hosein’s Lecture (Seattle Town Hall – Jan 17th, 2010)
Over the last years, the dynamism of the media and communications markets has shown a vertiginous explosion. These new dynamics in the market have been driven by the wide spread of internet access and more affordable technologies, let alone a growing human trend to share, share and share.
These factors have created a different journalism model, a model that flies lighter and faster. This new model is a new economic model for communicators and audience, as well. If you think of the most basic economic models: monopoly, oligopoly and perfect competition, moving from traditional media to new media is not other than moving from an oligopoly to a market of perfect competition. In traditional media, the supply-demand model that ruled the world of communications was a clear example of a market dominated by a small number of sellers/providers. On the supply side, the oligopolists were the brand names: major National TV broadcasters, Radio Stations and Newspapers. Communication was in the hands of only few entities.
This translated into several characteristics of the market easier pricing strategies from the supplier side (even risk to collude), higher entry barriers to the market (expensive technology and high cost distribution), and therefore, the message was easier to control. On the demand side, consumers of information were atomized, they had no chance to interact with the big players and they were not connected to each other. Instead, in the new media market, perfect competition takes places. High penetration of internet and more affordable technology to create content have create a new capability in our societies. In the new model, there are very low market entry barriers, anyone can be a creator and distributor of content, anyone can play along with the brand names, anyone can be an information provider. Demand is not a group of consumers that act independently without not knowing the other opinion. A cross-fertilized demand that take collective action. Today, in the message is free and very hard to control. Supply and demand interact in this new model, they even trade roles. The same person can consume content and create content.
Innovation has removed the entry barriers, but now there is a new challenge: how to win in such a competitive market? A market with infinite providers and demanding consumers that interact among themselves. Additionally, the cost of changing your information supplier is nil, it is not like buying a new newspaper, it is just the resources invested in a few clicks.
I can identify three pillars that enable communication in the Media Market: (i) Tools, (ii) Distribution Channels and (iii) Access to Information. You can even draw these three pillars in three-axe diagram and see how the triangle expands voraciously.
In this constantly growing “tools – channels - information” triangle a new sort of innovation is needed. This innovation should focus on creating content that is relevant and distinctive for consumers. Not all consumers, the consumers you want to conquer. The consumer, this is the audience, should be in the middle of this triangle. Today the fast pace of new media is frequently leaving the consumer behind. Creating content for the sake of content and not to satisfy an identified audience. Owning consumer-centric innovation in the creation and distribution of content should certainly be a point of difference to win in the new media chaos.
The Media Innovation Triangle (Graph)
- Toni Del Rio
