Digital Television and the Impact of Global E-Commerce and Social Media: Strategies and Stakeholders in the Transition to Internet TV Anthony J. Pennings, PhD New York University Panel Presentation at the EWC/EWCA 50 th Anniversary International Conference Honolulu, Hawaii July 2-5, 2010
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Digital Television and the Impact of Global E-Commerce and Social Media: Strategies and Stakeholders in the Transition to Internet TV
Anthony J. Pennings, PhD
New York University
Panel Presentation at the EWC/EWCA 50th Anniversary International ConferenceHonolulu, HawaiiJuly 2-5, 2010
Overview
• The Post-Network Era• Rise of Internet TV• Many Stakeholders
• e.g Broadband Providers, Advertisers• Strategic Advantages of Google• TV and the Digital Divide?
• Global advertising sales are expected to increase during 2010 by 4.2% to total of $377 billion according to MagnaGlobal
• Television continues to lead with the highest sales around the world, with more than 40% of the advertising sales, a total of $151 billion,
• TV is growing
Advertising
• Online advertising expenditures will reach $61 billion in 2010, and paid search advertising will make up nearly half of that, according to MagnaGlobal
• Google had US$20 billion revenues in 2009
Google TV
• Google’s stated goal is to “organize the world’s information”
• Video: What is Google TV Ads: Flexibility?
Google’s Competitive Advantage
Economies of ScaleNetwork Effects, Fixed Costs
Customer CaptivityHabit, brand, switching costs
Proprietary TechnologiesCrawlers, indexers, query processors, advertising systems that bypass traditional advertising co.
Government ProtectionNet neutrality
Digital Destruction?
The transition to Internet TV will be one of the great cultural and economic transformations of our time. The integration of television into the World Wide Web will continue to add choice, control, customization, and convenience while exploring new realms of community and commerce. But will it also continue the trends of digital destruction and divide?