In Digital Podcast 43, I take a quick tour through the history of media to examine how the economics of the industry are changing. I kept the video under the 10 minute YouTube limit and speed through some of the changes.

Fundamentally, we are entering a new era of media economics where supply is outstripping demand. We are on the verge of seeing what I believe will be hyper-deflation in impression based economics. There is simply too much supply and not enough demand. Consumers are increasingly unwilling to spend time watching ads to consume media. The alternatives for consumers are expanding every day and the media companies are struggling to keep up.

Media companies need to rethink their business models. They need to get beyond impression based business models and figure out community based business models that use media content as the centerpiece of social conversation. When the industry figures out the potential for communities to make make good money, I believe we will see the industry revive and go on to some remarkable things. Until then, look out. The hyper-deflation we are seeing in music will spread to video and if the industry does not adjust, it is in for a bad time.

Please let us know what you think.

 

 Digital Podcast 43: Play Now | Play in Popup | Download (180)

Technorati Tags: media economics, podcast