Specific characteristics of the media industry: Business Models and Management Challenges – Observacom

Since the twentieth Century, the variety of media and ads has elevated considerably. The amount of time required for brand new technologies to form a part of daily life has become much shorter than before. It is also a incontrovertible fact that in today’s world, children easily outperform their fogeys in using such applied sciences. The Internet has grown and still has much more to grow faster than some other media platform.

In the 20th Century, music and cinema replaced books as the most form of mass medium. Now, in the early a part of the 21st Century, it’s the Internet that has become the most generally used medium. The basic elements that have led to this state of affairs, apart from the rapid enlargement of non-public computer systems, are the expanding number of broadband connections; an exponential improvement in computer generation; and the constant and revolutionary rate of growth of telecommunications. All this has ended in radical penalties for the media industry, including the areas of enterprise leadership and the development of business models. Although the media industry has some marked and extremely specific variations in relation to other industries, comparable to visibility, and its cultural and social influences, media corporations are increasingly adopting more market orientated management practices, especially in the areas of marketing and sales, all of which are being focused on financial and financial profitability.

This condition also comprises an inclination for media merchandise to be perceived as a commodity or raw cloth. Moreover, management practices followed by media agencies appear to be more and more picked up by other industries. One of the sides that has contributed to the fact that the leadership of media agencies has become more aligned with the practices observed in other industries, is the impact of convergence at the level of business models, distribution and creation, for instance, and the increasing aggressive pressure generated by the transforming into variety of in a position conversation merchandise and substitutes. Growth in the implementation of models of multimedia merchandise also means that there is a starting to be view by media managers of the exact characteristics and complementarity between the different segments within the universe of communications media. In this feeling, one could say that, as they are aware that there’s a transition from a mono media production and distribution logic to a multimedia logic, operators are also moving from one variety of mono leadership to a more multi management format, in the sense that they need to purchase more advantage about the a lot of media agencies, in place of focus solely on a distinctive type, as often took place in the recent past.

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Furthermore, era, during the advent of program and other models supporting business management, has also contributed because of the homogenization of certain leadership tactics and operations. In this context, managers have a wider range of tools accessible to promote and administer their merchandise. For example, the promotional tools used by the media and telecommunications industries are actually more similar to each other, particularly as both sectors employ: ads, retail screen and promoting, trade promotion, advertising and marketing and public relations, sponsorships, direct marketing, amusement merchandise, oblique advertisements product placement, private sales, product registration and viral advertising. Information and data are about to become vital factors of creation, and new virtual items which reply to the needs of buyers and industries have entered the market and are constructing new areas of agencies corresponding to consultancies, services and the possibilities of cross media. In basic terms, media markets are actually discovering themselves located in an area of convergence determined by loads of factors, particularly: i the exact qualities of the arena, similar to technological developments, ii the legal and possibly regulatory structure; and iii the inner market and exterior fulfillment elements. There are loads of elements pressuring the informational markets e.

g. , law, technological innovation, communications platforms, etc. making them increasingly risky and aggressive. As a result of these pressures, hobbies behavior, traditional skills and the supplies of mass media agencies became inadequate, and a lot of practices at the moment are obsolete, a undeniable fact that calls for new forms of leadership and variation in the search for new forms of construction and distribution of content. In this new aggressive environment, companies wish to acquire and develop new skills, new supplies and new management practices that force them to become more market oriented, a bit like the aggressive pressures that affect other industries; this is to say, the need for competitiveness is contributing to greater standardization of management practices of the mass media, drawing them closer to the practices followed in other industries.

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In turn, the convergence of mass media and telecommunications applied sciences leads to another type of convergence: on the only hand, it contributes to bringing in combination further and further features and similarities between the media agencies themselves, and on any other, it helps standardize the leadership practices and business innovations used in alternative enterprise segments. That is to say, leadership practices utilized to various media businesses are becoming more akin to one another, to the extent that convergence can be observed in right here: i business models; ii distribution systems; iii technique of construction; iv advertising and marketing tools; and v interaction with the customer. Finally, and regardless of the sort or size of media, these practices are being faced, and at varying levels of intensity, with identical challenges at the extent of leadership recommendations and practices, as highlighted by here: i the creation of new products; ii diversification of formulas; iii the reorganization of work; iv brand leadership; v investment in technology; vi cooperation among businesses; vii costs discount; viii project leadership; ix portfolio management; x attracting talent; xi multiplatform content; xii the articulations among management and drafting of content material; xiii persevered education; xiv the conquest of buyer loyalty; and xv creation synergies. Summing up, it is feasible to conclude that the Internet not just represents a system or distribution channel comparable to, for example, radio and television, but in addition a technology and a platform for acceleration in the transition of media things to do into a new era. This is a indisputable fact that reinforces the will for brand spanking new skills and professional profiles in media businesses, considering business management during this industry will have to pay special consideration to the impact of era on their respective business models and professional skills. The adjustments introduced by electronic technology have been felt intensely, and the media executives of companies have been regularly adapting.

In this context, it is possible to say that technologies have helped to dilute the borders among each form of media and in addition to standardize identical forms of business management practices, despite the kind or size of media communications agencies accompanied.