BuddeComm Intelligence Report - Impact of the Digital Economy and the Media Industry
With the rise of digital platforms, the media industry is rapidly changing. In newspaper and book publishing, TV and radio broadcasting, film, music, and other forms of media, we see that the national walls that protect local organisations within traditional models are crumbling. In other words, it is no longer an issue of local market share. It is now about international market share.
But in general, despite the obvious need to move with the times, many organisations are still grappling with the digital economy and questioning the impact it will have on them or, even worse, are ignorant about it. In many cases, their own consumers are well ahead of them.
The public sector is also seriously affected by this, and may even have greater difficulties with the transition. They should learn from the problems in other sectors, especially book and newspaper publishing. The issues encountered by the Healthcare and Education industries are also classic examples.
The digital media companies are the clear leaders; however, there are parallel developments taking place: one driven by Digital TV using the broadcasting networks, and one driven by broadband using fixed and mobile telecom infrastructure. In 2015, 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.
Spending on advertising using digital media channel continues to grow in market share despite economic conditions slowing down the growth of overall advertising spending. The age-old issue of copyright and online piracy continue to be a core problem for the media industry. E-reader sales are declining as consumers turn to touch-screen tablets, global e-book sales continue to soar.