It’s no longer the same business Contemporary media trends and strategic decision making Robert G. Picard Reuters Institute, University of Oxford
Dec 29, 2015
It’s no longer the same businessContemporary media trends and strategic decision making Robert G. Picard
Reuters Institute, University of Oxford
Screens are now the primary technologies for media content and communication
Copyright © 2015 Robert G. PicardAll rights reserved.
Mobile is now the dominant means for interpersonal and media communication
Copyright © 2015 Robert G. PicardAll rights reserved.
Social networking is changing some media activities into interpersonal communication
Copyright © 2015 Robert G. PicardAll rights reserved.
Media consumption and use has become more individualized and active
Copyright © 2015 Robert G. PicardAll rights reserved.
Established media platforms are being supplanted by Internet-based connections
Copyright © 2015 Robert G. PicardAll rights reserved.
Supply of media content far exceeds ability of the public to consume what is offered
Copyright © 2015 Robert G. PicardAll rights reserved.
Ability of firms to profitably connect audiences with content is diminishing
Copyright © 2015 Robert G. PicardAll rights reserved.
News organizations headed for stormy digital timesdigital news consumption is up, but PAID consumption is slowing in most countries
70-80% of people never intend to pay for news
paid revenue is primarily growing through increased product offerings to existing customers
digital/mobile advertising is growing, but news organizations are not benefiting much
Media firms are struggling to find strategies for operating in VUCA environments
•volatileV•uncertainU•complexC•ambiguousA
Copyright © 2015 Robert G. PicardAll rights reserved.
Characteristics of VUCA environments
Indistinct industry boundaries•Unclear who the competitors are•Overlapping products/services •Challenges in defining the industry
Corporate structures in flux•Organizational boundaries changing•New work arrangements increasing flexibility•Increasing cooperation with competitors, suppliers, and distributors
Rapid changes in sources of competitive advantage•Evolving technologies•Shift to service orientation; assets becoming liabilities•Much imitation and adaptation by competitors
Copyright © 2015 Robert G. PicardAll rights reserved.
Traditional strategy methods are less useful today
The market maze changes constantly and rapidly
Copyright © 2015 Robert G. PicardAll rights reserved.
You can’t plan your route, only how you will try to find it
Continual innovation, learning, and adaptation
How does a media company get to a sustainable competitive position?
Copyright © 2015 Robert G. PicardAll rights reserved.
The value creation perspective of media firms has to change to be successful
Traditional media product and advertising activities•Goods logic•Company-centric approach•Sell products and audiences•Sales- and exposure-based performance
Business-to-consumer and business-to-business media activities•Service logic•Customer-centric approach•Co-production of service•Sales, customer interaction orientation
Copyright © 2015 Robert G. PicardAll rights reserved.
Stabilizing consumption and revenues are the primary strategic objectives
Strategic tipping points for print media enterprises in the digital era
1
Copyright © 2015 Robert G. PicardAll rights reserved.
already the case for many news
orgs
some magazines and papers
nearing
a few magazines have reached this
poiht
already the case for some papers and
magazines
Strategic tipping points in the digital era for broadcast/cable media enterprises
1
already the case for cable
channels
some networks are close to
this
Copyright © 2015 Robert G. PicardAll rights reserved.
picard_robert