I have just finished reading the Future of Media Report 2008, which was recently released by the Future Exploration Network. The report projects that the size of the global media and entertainment will grow from $US 1.6 trillion in 2008 —> to $US 5.7 trillion in 2024.

They highlight here with this massive growth projection that “the current positioning of some media companies in a rapidly changing market means that they are not experiencing this upside…” (Get some background: Charles Warner: Media Morph - Huffington Post) but also that “others are doing fabulously well in tapping people’s almost insatiable desire for content and connection.”

The 7 forces they list as “shaping media” are below. I have picked out one or two key facts or learnings from each relevant to Comms and Media professionals.

  • Increasing Media consumption: Most media will be consumed with partial attention. Appetite for content is virtually insatiable.
  • Fragmentation: Audiences are being divided into smaller and smaller segments. Revenue per channel will decrease, production costs will need to be scaled down.
  • Participation: Consumer Generated Media is now certainly a reality. Pro-Amateur models will (continue to) emerge. People are now actively participating in creating content, not just passively consuming the content generated by media companies and professionals.
  • Personalization: Consumers expectations of their level of control over their media is increasing. Advertising can now be more targeted but future here is dependent on society’s view on privacy of profiles online.
  • New revenue models: Current trend is a migration from subscriptions to –> ad supported business models. Another expectation that has grown is that content should be free. (Get some background: Compete with free by going beyond free: Poynter Online)

But: 37% of consumers say they would rather pay for online content that be exposed to Ads - Deloitte

  • Generational Change:Media channels will be increasingly age-segmented. Ad agencies will shift to new media outlets. Also, another point I found interesting here, “sharemarket valuations will reflect age profiles of audiences”. Is this hinting at a correlation between age (and relevant disposable income) and valuation e.g. teenagers lower than baby boomers? Interested in thoughts in agreement or to the contrary here.
  • Increasing Bandwidth: Majority of developed country homes will receive over 100 Mps. Mobile bandwidth also soaring.

In Part II of this review I will look at the second part of the report which is also extremely relevant, even critical if you take into account the projected growth forecasts above, for those in the communications and media industry to know and understand. Part II will focus on the Future of Media : Strategy Tools and my thoughts of the key points to take from this research to put into practice.