Wednesday, January 04, 2006

New Media taking hold in 2006

From Diane Mermigas' article in the Hollywood Reporter:

"If 2005 was the year that digital broadband technology took the media and entertainment industries by surprise, then 2006 will be the year it takes control."

Diane goes on to highlight a number of the Old Media deals in 2005 that pushed towards the New Media models (like ABC and NBC on iTunes,) as well as the promotion of new executives to lead the charge.

A few thoughts on new mediums and models:

"The most important new market is global subscriptions and advertising on handheld devices, which will total $10 billion in 2010 and reach $50 billion five years after that, Bernstein Research said. For now the tug of war continues between cable, satellite and telephone companies about a $120 billion video, voice and data consumer bundle.

With broadband adoption nearing 60% of all U.S. households, DVR usage in all forms expected to be about 20% in 2006, it looks like the "killer application" of new media is what the consumer wants, when they want it, where they want it."

That sounds familiar. Diane closes with this comment:

"Indeed, the entire concept of "value" in media and entertainment is in a state of flux: the value of companies, their products and services, their advertising time and space, their customers. How that value is redefined and redistributed will be the big story of 2006."



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