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The Asian Media & Mass Communication Conference 2010 Osaka, Japan The Asian Conference on Media and Mass Communication Osaka, Japan October 28-30, 2010 Who’s afraid of the Future? Effects of Changes in Technology and Media Usage on the Competitive Landscape and Strategies of the Media Prof. Dr. Sabine Baumann Jade <strong>University</strong> Wilhelmshaven Institute for Media Management & Journalism Friedrich-Paffrath-Strasse 101 D-26389 Wilhelmshaven Germany Tel. +49 44 21 - 9 85 24 96 E-Mail: sabine.baumann@jade-hs.de 47
The Asian Media & Mass Communication Conference 2010 Osaka, Japan Who’s afraid of the Future? Effects of Changes in Technology and Media Usage on the Competitive Landscape and Strategies of the Media Prof. Dr. Sabine Baumann Jade <strong>University</strong> Wilhelmshaven Institute for Media Management & Journalism Abstract Based on Web 2.0 technologies users create and publish content or connect with friends in social networks, thus becoming significant elements in the media systems of the future. Their contributions can be either serious competition to or valuable extensions of the business models of established media. The effects on the external environment as well as the necessary changes on the strategic and organisational level of traditional media companies so far have received little attention in media research. The paper explores the fundamental questions of how the established media systems and business models are affected by the new competition and thus, how to ensure long-term survival. Traditional media must adapt their business models to create competitive advantages from content ownership, including the exploitation of user-generated content. Besides, they have to counterbalance both the loss of readership and audience and the ensuing loss of advertising revenue. The major problem is the move from local monopolies to global platforms where competition is ubiquitous, and advertising therefore less lucrative. The key findings are that large potentials for the media lie in integrating the production and distribution of user generated content into their business models. The combination meets the requirements of converging technologies, an increasing mobility of readers and audience and their demands for personalised high quality content anywhere, anytime. New digital publication and consumption gadgets command specific content only to be realised through additional investment. Analogously, advertisers develop new generations of models to exploit the evolving consumption habits through advertising directed at specific consumers. Keywords: Business Models, Strategy, Competition, Revenue Streams, UGC, Web 2.0 48
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