Skip to main content

Digital Media Era Creates the Perfect Storm

Kagan Research reports that most media sectors have been slumping for years on Wall Street as cable TV, broadcasting and film underperform the broad stock market. Established media companies are unaccustomed to life in the doghouse because for decades they were darlings of the investors.

Are they in a "perfect storm" � a freak confluence of unfavorable trends that will suddenly pass � or has the media landscape evolved into a more hostile environment? It's an interesting debate.

Established media is roiled by digital media's disintermediation (consumers accessing content directly thus bypassing traditional aggregators), personalization and increasing overlap erasing watertight media borders of the analog era.

"I see a lot of uncertainty about the effect of viewer time shifting, the erosion of the 30 second TV spot, and the threat of the Internet for video delivery," observes John Mansell, a senior analyst at Kagan Research. "There's too much up in the air to expect optimism from Wall Street in the near term."

Popular posts from this blog

The Subscription Economy Churn Challenge

The subscription business model has been one of the big success stories of the Internet era. From Netflix to Microsoft 365, more and more companies are moving towards recurring revenue streams by having customers pay for access rather than product ownership. The subscription economy cuts across many industries -- such as streaming services, software, media, consumer products, and even transportation with the rise of mobility-as-a-service. A new market study by Juniper Research highlights the central challenge facing subscription businesses -- reducing customer churn to build a loyal subscriber installed base. Subscription Model Market Development The Juniper market study provides an in-depth analysis of the subscription business model market landscape and associated customer retention strategies. A key finding is that impending government regulations will make it easier for customers to cancel subscriptions, likely leading to increased voluntary churn rates. The study report cites the