10 Digital Media Trends To Watch in 2010
"Previously, winners were defined by their strengths in content development, packaging, and distribution - all key for an entertainment world characterized by scarcity," reads the introduction to the report The digital era is characterized by unprecedented levels of consumer choice, ubiquity, and interactivity. To succeed in this more dynamic environment, companies need to acquire and build new skills. They must excel at developing deep audience insights; building consumer relationships across multiple platforms and user environments; creating targeted content, applications, and advertising opportunities; and managing a mix of monetization models across advertising, subscriptions, and commerce".
Whether you are a fan of predictions or not, this list of trends provides a useful framework to access the music and music tech industry's change efforts.
- Cost Cutting - Although most companies have cut costs in the past year, ongoing structural changes in the media and entertainment industry will require continued vigilance on cost reduction—even as advertising and retail markets stabilize.
- The Victors vs. The Vulnerables - As share battles increase and competition intensifies in digital, there is now a permanent fissure between the industry’s “victors” - which have superior strengths in their business models, financial positions, and brands - and the “vulnerable,” whose capacity to adapt, invest, and shape their future is considerably more constrained...Merely shifting analog content online (free or paid)...is not likely to work...In fact, for many players, paid content will likely prove to be a long and winding road to a very small house. Smart companies will focus instead on building new revenue streams rather than just migrating old models to digital."
- Mergers & Acquisitions will continue or increase.
- Shifting Roles - The traditional value chain of marketers, agencies, and media companies will continue to evolve, unravel, and be reconstituted in more heterogeneous combinations.
- Traditional Advertising & Marketing Isn't Working.
- The Evolution Of Media Metrics - Today, media metrics are still focused on inputs (for example, impressions, reach, and engagement) rather than outputs (such as impact on brand equity,net promoter scores, or sales lift).
- Increased Use Of Analytics - "...incorporating data on consumers’ Web behavior to help..make better decisions about content development."
- Social Media - They are fast becoming distribution hubs for content, given consumers’ propensity to share content, links, and networks.
- Mobile - Smartphones and apps are rapidly expanding options for contact and delivery.
- Online Video & New Devices - The rapid expansion of online video, along with new “tablet” devices and readers, will compel media and entertainment companies to regain control of the customer interface in order to better monetize the digital experience.
- Read the full report. (pdf)