The elements of the business challenge for traditional media companies fighting for viewers eye balls‘ are clear thus scary: Increasing content costs by diminishing ad revenues and carriage fees, reduced public funding and aging audiences.
This change is impacting the entire eco system from content production to aggregation, distribution as well as technology and service vendors. The last 30 years have seen the emergence of private TVs and the multiplication of channels but this change has not threatened the existence of the historical players as new players were entering the arena. Even if the boundaries have blurred the role of each company in the food chain had not fundamentally changed and only few companies have collapsed. Driven by new viewing habits, enabled by technology and built on new business models this is all changing and fast. Consolidations will happen even more as the true convergence between media, IT and telecom industries is finally happening.
What will be the future role of a broadcaster? Will the combination of content production, programming and aggregation in a B2B model prevail?
This series of mediaSTRAT opinion pieces will look into various aspects of this fascinating change.
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