CONSUMERS - MORE PLACES, ALL AT ONCE (part 2)

More places, all at once, on-demand. To achieve success in the new direct media (broadband and mobile) world, media companies must be willing to be where their viewers are, when they want you and in the proper format. Therefore, it is critical to have strong capabilities in all three core viewing forms: Traditional, Portable and PC (broadband). Because each of these core areas has its own unique challenges and characteristics of creative, distribution, technology and monetization, media companies must do more than re-purpose, but rather, create unique content with each channel and its characteristics in mind.

Obviously, media companies can be and are successful in any one of these content distribution areas, but those media companies who leverage all distribution channels will gain exponential success per viewer.

Think back to the birth of the Internet, many large traditional companies simply repurposed their brochures on-line. Those companies quickly lost ground to the players (upstarts and larger, wiser companies) who built new experiences by leveraging the unique aspects of the new medium. Additionally, those companies who had a multi-channel commerce strategy (Brick and Mortar, Catalogue, Web) did not simply end up spreading the same revenue dollars across multiple channels, but rather, they saw overall revenue per customer increase.

So, enough talk - what are you going to do about it? We can assume each of us has our own challenges and opportunities within our core business to expend our precious internal resources on. Here are your options:

Do nothing. The easiest answer of all, but not recommended. If you are not in these new areas you can be sure your competition will be. Your viewers will be building a dynamic and dependent relationship with your competitors. Again, doing nothing is the easiest answer, but not the right one.

Build internally. It is important that your current operation focuses on their core business or task. But, if your company has an individual or a group of individuals that are already entrenched in the area of creating content for alternative areas of distribution, you may have the right internal resources to start building a direct media division. This does not mean looking to your Internet site builder or designer to create broadband content, nor does it mean having the guy with the coolest cell phone create mobile content. If you are going to build internally you need to ask yourself, “Do I want to win, or just play at this?” The direct media space is changing quickly and you will be competing against new companies dedicated to success in these new areas that have everything at risk, and will compete to win. If building is your choice, pick or hire a team that is the “best in class” in these areas and give them full latitude to succeed.

Invest, buy or partner: Obviously, our choice. By working with companies and partnerships that truly understand the challenges, characteristics, business models, and players of the three forms of distribution, you can remain focused on your core business while maximizing your current content creation process and direct media distribution. This strategy will let you enter the market, learn, claim territory and mindshare. The key is finding strong partners who can help you navigate the waters and are working for your best interest.

Traditional media is still currently the best way to reach a mass audience at a single moment in time. Yet, now is the time to leverage your assets into the direct media space. Its purpose is not about pushing the consumer back to your traditional outlet, but rather, it’s about leveraging that outlet so that all of your content is accessible to the consumer when, where and how they want it.

The Direct Media market is vast and rapidly growing; your viewers are already there. It is not coming, it is here. What will you choose to do?

CONSUMERS - MORE PLACES, ALL AT ONCE (part 1)

Thousands of articles have been written about the shifting media landscape. We all know it’s coming. The truth is, it is already here. TiVo has been allowing consumers to time-shift and ad skip for several years. The Internet has become a fast growth multi-billion dollar advertising vehicle, expected to generate more than $14 billion in ad revenue in 2005. High-speed Internet access, or broadband, has attained critical mass, reaching 42 million U.S. households this year. People are consuming media on the go and on new portable devices like mobile phones and PSP Players. It is estimated that by 2009, there will be 168 million video enabled cell phones and 30 million subscribers to at least one video service in the U.S., generating over $3 billion in revenue domestically (worldwide market will grow to $27 billion by 2010).

The fragmentation of media and the explosion of choices has driven changes in the way consumers (particularly younger viewers) are influencing programming today.

o The Next New Thing: Driven by cable networks, consumers are used to continuous new programming introductions. More premieres, shorter seasons, and fewer episodes per series. Contemporary viewers are drawn to programming that constantly refreshes.
o I’m In Control: Driven by video games, DVDs and DVRs, contemporary viewers are used to controlling their viewing and “slotting” consumption on their own terms.
o Short Form: Americans are consuming 95 hours more “media” on average than they did just last year, and 310 hours more than five years ago. They are also consuming media in smaller and smaller “bites” and multitasking thanks to shorter attention spans, and proliferation of digital devices such as video games, mobile devices and broadband.
o Quest For Different: Young viewers today are information impressionist because of the way they go to different sources for news and entertainment, combining Yahoo, NBC, The Daily Show and word-of-mouth to be entertained and informed. They are willing and it is easy to choose from new and unique sources to find an interesting variety of content.
o Blurring Boundaries: The boundaries between television and the actual world are increasingly blurred. Media content has become more hands-on via interactive digital technology and more easily transferable and shared. Viewers now multi-task, consuming various forms of media at the same time. Picture a today’s typical teenager, with their iPod on, flipping TV channels, Instant Messaging friends about a TV show, and surfing the Internet. Furthermore, you can now engage the viewer and create a lasting valued relationship because these new platforms are interactive. For the first time you and your advertisers are one click away for creating a valued relationship, lead or sale.

Media, Entertainment and Technology

New forces are changing the way media and entertainment will be both created and consumed. The power has shifted to the individual and it has only JUST begun. The individual not only has vast resources to choose from for entertainment, but the individual can also determine how, where and when to consume media. iPods, Tivo, Blogs, PodCasting, OnDemand, Mobile, Internet - are just the tip of the iceberg.

Additionally, the production of entertainment has shifted power to the individual with new, easy to use tools and means of distribution, and it will only get better. Heck, that photo above of Manhattan Beach pier at sunrise was an impromptu photo I took with my Treo 600 this past Xmas morning while walking my dog. The power has shifted to the individual.

My son in Elementary school is programming in Flash doing animations for his friends and family, while my Middle school son is busy producing editing digital film leveraging his iBook and software. The power has shifted to the individual.

I have been working on strategy, technology and marketing with interesting companies who are focused on enabling this change in media and entertainment. These companies are focused on empowering consumers with choice, tools, and ease of distribution creating stronger community and ties to brands and products.

Yet at the same time I continue to be amazed at the large Studios and Networks inability to better deploy simple new ways of interacting with their customers to create ongoing and lasting relationships. Big brands are catching on everyday, testing the power of leveraging each unique media channel for its own strength as well as cross strength. Brands are learning how something as simple as driving consumers to a Mobile phone SMS text message and response can next move to an on-line relationship and from there build a long term relationship and great value.

The power has shifted to the individual - I have placed some links on this page for you to explore.