Traditional media can claim back its edge with innovation

Technology & Convergence

IBM believes that traditional media and entertainment companies that move fast to embrace and monetise digital channels stand to win back their audiences and their advertising revenue, despite doomsayers who say it is dead.

Traditional media and entertainment players may be entering crisis mode, as digital channels erode their advertising revenue; bloggers and social media divert their audiences; and the rising cost of content generation puts them at a disadvantage in an age of citizen journalism and content aggregation. There are rising operational costs and an onslaught of competition on the digital front but it is not the end of the road for traditional media.

The company's media and entertainment (M&E) division sees a slow but steady return of audiences to trusted news providers in the global context.

After the initial scattering of audiences amid an explosion of new sources of news and entertainment, audiences in developed markets are slowly regrouping around selected, trusted content providers - there will always be a place for quality content.

…Many M&E companies in South Africa have been too slow to optimise the new channels available to them. As a result, they are losing ground to non-traditional M&E players such as Telcos, marketers and individuals that are producing rich, interactive and targeted content and eroding traditional players' advertising revenue.

…Digital media presents unlimited opportunities to deliver news faster and make content richer: consider embedded video and audio clips, interactive infographics and links to information about goods and services. Instead of product placement within multimedia clips, marketers could go a step further by linking images and keywords to product information and purchasing options. Content can be tailored to suit individual interests, content consumption patterns and geographic location.

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Source:  bizcommunity - Shane Radford 14 August 2014