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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 University 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
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