BuddeComm Intelligence Report - Impact of the Digital Economy and the Media Industry
The traditional media industry has been under turmoil since the rise of digital media platforms which have impacted upon many aspects of the media industry of old. These changes, combined with an economic downturn, have led to much unrest in the media sector. Major competing sectors include TV and radio broadcasting, newspaper publishers, film, music and video industries.
The digital media companies are the clear leaders however and to a certain extent there will be parallel developments: one driven by Digital TV, using the traditional broadcasting networks and one driven by broadband using new fixed and mobile telco infrastructure. In 2014 the advertising spending being directed towards digital media continues to grow, further escalating the problems for the traditional media.
This report broadly describes and analyses the effect that digital media and convergence is having on the media industry. It uses the long standing book publishing industry as a case study of one example where digital media is having an enormous impact.
The tension between the vested traditional media and the newer Internet media companies continues with the age old issue of copyright and online piracy at the core of the problem. The competition is also heightened as these companies fight over advertising dollar. Advertising is very important to the media industry and in many cases is the main source of revenue. The direction the advertising industry takes directly impacts on the media sector.