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Mapping New Media in an Era of Convergence 1
MAPPING NEW MEDIA IN AN ERA OF CONVERGENCE
BY
DILPREETA VASUDEVA
INDIAN SCHOOL OF BUSINESS CLASS OF 2007
Mapping New Media in an Era of Convergence 2
TABLE OF CONTENTS
TOUCHING THE LIVES OF ONE AND ALL- INTRODUCTION ......................................................... 3
CONSUMER EMPOWERMENT ............................................................................................................... 4
MARKETING IN THE NEW WORLD ....................................................................................................... 5
FORMALIZING BLOGGING.................................................................................................................... 10
THE TECHNOLOGY FRONTIER ........................................................................................................... 11
SERVICE PROVIDERS............................................................................................................................ 12
CONTENT PROVIDERS .......................................................................................................................... 12
MOBILE DEVICES.................................................................................................................................... 13
PERSONAL DIGITAL ASSISTANTS AND SMARTPHONES........................................................... 14
THE MUSIC MARKET.............................................................................................................................. 16
THE CAMERA MARKET ......................................................................................................................... 17
THE TELEVISION MARKET................................................................................................................... 17
WIFI AND VOICE-OVER-IP MARKET................................................................................................... 18
PORTABLE CONTENT JUKEBOX ....................................................................................................... 19
GAMING MARKET ................................................................................................................................... 19
COMPETITION- LAPTOP........................................................................................................................ 20
INTERNET, TELEVISION AND COMPUTER....................................................................................... 20
THE ROAD AHEAD – PASSWORD IS THE KEY............................................................................... 23
CHALLENGES ON THE TECHNOLOGY FRONTIER........................................................................ 25
REFERENCES........................................................................................................................................... 27
EXHIBITS ................................................................................................................................................... 28
Mapping New Media in an Era of Convergence 3
MAPPING NEW MEDIA IN AN ERA OF CONVERGENCE
TOUCHING THE LIVES OF ONE AND ALL- INTRODUCTION
Entertainment, Media and technology are converging as never before. The digital
revolution is being led by several industries; communication industry for providing
infrastructure, entertainment industry for delivering content, consumer electronics
industry for product development and semi conductor industry for the grey
matter.
Digital Revolution means different things to different players. To a consumer it
implies more features being made available in a single device. To a media
providers and conglomerates it implies a struggle to be competitive in the market
place. To device manufacturers it implies staying ahead of the curve in
breakthrough technology and innovation to gain customers as the penetration
rates increase.
Consumer electronics are becoming an indispensable part of everyday life like
mobiles, PDA’s, mp3, digital cameras, DVD’s, DVR’s, digital televisions, gaming
devices. Consumers are demanding more functions in the same device, mobile
phones with MP3 players, cameras with email access, video recorders with hard
drives are cases in example. However delivery of such devices poses challenges
on many fronts affecting user interface, software, hardware, communications,
Mapping New Media in an Era of Convergence 4
semi-conductors and manufacturing. Most often the challenge is to introduce a
faster, smaller, cheaper and more reliable technology.
Convergence is the action word. A PlayStation 2 which is a game console, CD
player, DVD player and internet connector; a Mobile phone with a digital camera,
camcorder, radio and voice recorder exemplify convergence. Another case in
example is the emergence of fixed and mobile telephony convergence. The aim
is to switch between both services with a single phone, which could be between
networks automatically and seamlessly.
CONSUMER EMPOWERMENT
The consumer is no longer willing to pay a premium for exclusivity as pirates
have made content freely available online with the growth ofP2P networks.
Content protection and digital rights management has become a growing
concern in this environment. Increasingly content providers are themselves
making content available. Launch of movies on television, streaming news bites,
ringtones being some examples.
New media has encouraged the customer to move out of his passivity and
instead assume control, interact and influence like minded individuals, actively
solicit information from anywhere as well as made the marketing process a lot
more transparent. There is a need to lend the concept of convergence a
Mapping New Media in an Era of Convergence 5
consumer perspective. This would imply creating one basket, enabling end user
to access any information, through a channel of their choice, anywhere and
anytime.
MARKETING IN THE NEW WORLD
In the digital age the focus is shifting from a market oriented approach to a
consumer orientated approach. The focus is on the 8-18 years segment. The
cost of partial attention is high and is becoming difficult to catch the viewer’s
attention.
Prime time has become a fallacy. Prime time today is customized as per the
segment that it is marketed to. Different target groups watch television at different
hours and therefore there is targeted advertising. Balaji production exemplifies
making post 8.30 pm shows prime time, focusing on houswives.Similarly
professionals and business personnel’s prefer to watch news early morning.
Prime time is being customized to lifestyle of consumer. A consumer is becoming
both demanding in breadth and depth of content as well as is keen on on-
demand entertainment.
Technology is becoming disruptive for traditional media. An example of the same
is youtube which has all music videos. The relevance of traditional media is
diminishing. Viral activities on the likes of youtube and myspace have decreased
Mapping New Media in an Era of Convergence 6
the cost of advertising substantially and leveraged on the creative energies of the
consumer. Consumer involvement and empowerment is driving the content. Self
made movies, promotions, creative’s are launched and have become a cult.
Branding has been repositioned as a strategy. Successful branding will be when
people will talk about the brand rather than the brand speaking about itself.
Blogging and creating communities will be the contemporary strategies that
corporates will need to embrace.
Traditional Media will continue to attract advertisements given the reach and
ability to effectively to cater to branding initiatives. They are established brands in
quality and delivery of content. Traditional Broadcaster are trying to be
aggregators, however, this is not their specialization. There is a need for both
backward and forward integration however, it is not lucrative in the present
scenario. Incumbents would need to be flexible and ready to adapt to the
changing trends. New media is critical to the traditional players due to the reach
and distribution strength that is inherent in the model. Thus there is a need for
traditional media to understand the new players, the role in the industry, embrace
technology and new mediums, balance their business portfolios and build
alliances. Sunsilk is an example of having leveraged on traditional media for its
gang of girls campaign
A smaller screen, mobility of device and multiple uses that it offers are prime
deciding factors that influence purchase. Smaller the screen he better it is. The
Mapping New Media in an Era of Convergence 7
device with maximum potential in the future is the mobile. The potential for this
needs to be tapped and has maximum research and value added features being
added to it. Webcasts and podcasts are being aired and have become a method
of promotions. Cadburys ran it s campaign by wishing students as they checked
their board results through a service provider. This demonstrates the use of
effectively targeting one’s marketing segment.
Customer lock in is critical for the Screenagers (mobile users). One of the best
suited examples is that of orkut which has got its users habituated as well as.
Orkut has successfully won the mind share of users as often there are offline
discussions thus involving the user even post usage. Brands can effectively
target niche requirements; Nike launched shoes through which one can connect
to ipod through and monitor calories.
There is an opportunity for each individual to be a journalist. News channels are
leveraging on the same too. Power base is shifting to consumer based journalism
80% of media by 2020 will be digital. Myspace.com is a platform that thrives on
consumer driven content.
The advertising budgets of some the major brands like Sears, McDonalds,
Chevrolet mimic the GDP’s of some small nations. The non advertising budgets
like those of promotions, trade allowances, sweepstakes, coupons and
sponsorship exceed even those amounts. However, the returns are not very
Mapping New Media in an Era of Convergence 8
encouraging. This can be partially attributed to television advertising becoming
less effective yet more expensive. Of the many rationale, shrinking network of
audience, increased competition and decreased points of differentiation are
some of them. Credibility of traditional media as a marketing tool is declining and
therefore avenues in new media are being explored.
Knowledge is power and the internet can be directed to gain maximum insights
into consumer behavior and aspects influencing their purchase decision and
factors motivating their consideration set. One of the methods to overcome
traditional brand management is to emphasize on the process over the product,
Unique Organization Value Proposition over Unique selling Proposition;
organizational reputation, product performance, product, customer portfolio and
network over the 4 P’s of product, place, price and promotion. Technology has
made tracking customer usage, making recommendation based on history cost
effective and minimized the amount of resources required. Amazon, eBay,
Google, Dell to quote a few, have used customization features effectively and
influence buyers in subtle ways. Another differentiator will be the ability of firms to
offer in depth information and inculcate a passion for the product in a competitive
environment. Harley Davidson, Snap-On and Iams to name a few have not used
mass media to build their brand identity. This phenomenon has become more
imitable in the age of new media, which supports building loyalty and profitability
with decreased expenditure. For the niche players the focus will shift from
Mapping New Media in an Era of Convergence 9
competing on value to competing on radical marketing and techniques that win
publicity and appeal to customers.
Permission marketing has become a trend, whereby a dialogue about the
product is initiated with the customer through voluntary participation. This is
perceived as a best practice in the virtual space. Although, some of the most well
known companies have been charged for phishing on more than one occasion.
Permission marketing further helps segment the market and target it better;
determine service levels, level of interest, potential of customer, as well offer
customization. Traditional marketing in contrast is considered to be “interruption
marketing”. Electronic communication is cheaper, better targeted, faster, highly
customizable and simpler and convenient for the customer. Another advantage
has been the ability of manufacturers to build on a direct marketing model by
avoiding any intermediaries like wholesalers and retailers. This has the potential
of making the market more price competitive. Even for the distributors the model
replaces inventory with information.
Most importantly, today one doesn’t know who or where one’s customer is. It has
become difficult to put a face to her and this emerges as one of the biggest
challenges. Therefore reach has become a driving force and is critical to
success.
Mapping New Media in an Era of Convergence 10
FORMALIZING BLOGGING
Blogs can be written and read by anyone, anywhere. It is emerging as one of the
most powerful tools and is said to have the gunpowder to the like of emails. In
the age of globalization, multi national companies stand to gain from the level of
interaction that one may initiate within the company. Not only is it a two way and
open channel of communication but establishes transparency to the internal
customers of a company.
Sun Microsystems has integrated blogs to drive motivation and morale amongst
its workforce by recognizing high performing employees in the hall of fame on
their blog. Additionally blogs are an ideal mechanism to encourage
entrepreneurial spirit through sharing of ideas and driving innovative thinking and
encourage actively learning through others experience.
This channel of communication extends to external customers too. It can be
successfully used to reach the customer as an influencing tactic, conducting
marketing research, delving into their mind space as well as initiating high
involvement at their end leading to customer empowerment. Furthermore,
tracking competition industry trends and market mapping will be made easier and
lead to effective market segmentation.
Mapping New Media in an Era of Convergence 11
Such a participative forum initiates a sense of belonging to a virtual world and
this virtual world will not only lead to individuals identifying themselves with
communities that one aspires to cultivate but also will be brands in themselves.
Bloggers will be spokespersons and brand ambassadors of their ideas and of the
era to follow.
For the corporate players that do nurture this trend it would only be prudent to
observe certain caveats and seek active involvement from their legal and
corporate communication teams. However, one cannot disregard the threat
posed by miscreants and negative impact on one’s brand through blogging,
especially since it is difficult to gain timely information of any negative publicity,
track a blogger and constrain his opinion .This poses to be one of the main
challenges in the future in brand management.
THE TECHNOLOGY FRONTIER
The ambit of a mobile phone today extends to ever growing features and
applications. There are two key enabling technologies of this era. First,
conversion of analog to digital communication which opens up possibilities for
capturing, storing, processing, transmitting and presenting a wide variety of data
not possible before. Second, the Internet Protocol (IP) based devices that allow
fixed and wireless communication devices to be transmitted across broadband
Mapping New Media in an Era of Convergence 12
internet and hence provide a fast and cheap medium for voice, data and video
transfer.
SERVICE PROVIDERS
Consumers are increasingly willing to forego the advantages of purist devices for
converged devices that enable multi-tasking and has a potential to avail
subsidies through network operators. The role of the network operator or Service
Provider, as the gatekeeper of the functionality of mobile phones in their network,
is crucial.
Operators will encourage greater spend and generate higher ARPU’s (Average
Revenue Per User) through charges for downloading of content. Providing value
added services like back up of downloaded content will also help reduce operator
churn and build customer lock-in. As they function in a competitive marketplace
service providers may cater to exclusive content though corporate tie ups.
CONTENT PROVIDERS
Content developers have been resistant to developing a holistic approach to
brand/content. Digitizing of back-content has become a necessity given the level
of piracy. Content owners will no longer be able to survive on a linear content
Mapping New Media in an Era of Convergence 13
distribution model. They will also need to create scaleable content distribution
platforms in order to meet the content demands of consumers via a range of
converged devices.
Some of the reasons for lack of substantial improvement on this front can be
attributed to
• investment required to build such a platform
• perceived lack of consumer demand
• complexity of rights issues
• lack of visionary foresight
A centralized content database is a potential solution. The centralized e-tailer
(like iTunes/Napster) can be country specific websites given the complicated
viewing rights and some global platforms that offer content irrespective of
regions. Such a step will also help in satiating the concern of content providers of
the security of the content, its marketing and positioning and evoke responsibility
of the network operator for distribution of content.
MOBILE DEVICES
Some of the trends that have mobile poised for the technology revolution and
portend maximum convergence are
• The global market for mobile entertainment is predicted to be worth $40bn
by 2010.
Mapping New Media in an Era of Convergence 14
• Ubiquity and convenience of mobile phones
• popularity of text messaging feature
• potential of audio-based mobile music services to exceed $ 11 bn by 2010
The consumer electronic industry is working on projects parallel to the mobile
phone market. They seem to enjoy the benefit of technical developments globally
while content providers still seem to be in the infancy stage.
Mobile users offer a much larger segment that will be willing to try out new and
innovative mobile phone products that would be specifically designed to meet the
media. Further, mobile phone manufacturers will have an opportunity to cater
towards a relatively large segment of lead users. This relative ease of marketing
new generation mobiles can be attributed to first, affordability of mobiles as
compared to other high tech products. Second, cell phones and entertainment
are both experienced by even low-income households. and hence is a mature
market in that respect..
PERSONAL DIGITAL ASSISTANTS AND SMARTPHONES
Demand for rich content and services and 3G network is being serviced through
two types of mobile handsets. PDA’s (handheld computers- Palm’s Treo 650)
and smartphones
Mapping New Media in an Era of Convergence 15
The market for PDA’s especially for business users remains a viable one even if
smartphones have stolen the smart device mind share of consumers.
Blackberry is the leader for email-enabled PDA devices and is essentially
regarded as leading the market for wireless email access for business
community. Similarly Motorola’s partnership with Apple seems to indicate that
there is convergence between the two devices.
The assumed primary functions of PDA’s and smartphones, emerge as their
main differentiator. While PDA’s are often used to manipulate and use data
irrespective of voice capability, smart phone on the other hand are primarily used
for voice communication and used for entertainment functions.
Interesting an actual purchaser of smartphones is in the age group of 35+.This
may be attributed to purchasing power and an ascription orientation. However,
the age group of 18 years and above has been identified as the most active user.
Although smartphones are projected to triple their sale by 2010 however
presently they have some deterring factors.
• high price of gadget and wireless data network services.
• they are both bulky and big.
• low battery life due to substantial energy consumption to activate
features.
Mapping New Media in an Era of Convergence 16
These hurdles will be overcome given Moore’s Law and Research &
Development initiatives that will help shrink storage and improve battery
performance.
THE MUSIC MARKET
The rationale of music’s portable leadership is first, the ability of people to multi-
task when listening to music and second, small file size as opposed to video
content. Nokia’s N series (N 70, N90 and N91 models) and Sony Ericsson’s
revival of the Walkman brand with the launch of W800 seem to indicate that
mobile phones in a matter of time may prove to be the “ipod killers”.
However, if we are to extrapolate our learning from the existence of digital
cameras despite camera enabled phones, it is unlikely that music player market
will suffer in the near future.
The operators favor modest capacity flash- based music phones especially due
to pressure to subsidies device purchase and as a means to limit the extent to
which a customer spends time on non-revenue generating activities. Though
there exists a caveat with respect to which capacity may be manipulated for, a
dissatisfied customer is more likely to switch to exclusive music devices. Hence
enhanced customer interface will be the potent weapon to grow the market by
attracting the casual music consumer.
Mapping New Media in an Era of Convergence 17
The segment that mobile will fail to capture will thus be of a savvy and heavy
user and that of quality of music and brand conscious users. Motorola’s
partnership with Apple suggests that there exists a potential for the convergence
of the two devices mobile and ipod.
THE CAMERA MARKET
Nokia is the leading vendor of camera phones. The N series supports direct
connections to Yahoo!’s popular Flickr picture sharing service with tagging
function.
THE TELEVISION MARKET
Archos’ Jukebox, Pace’s PVR2GO, Sony’s PSP, Thomson’s Lyra and Apple’s
video ipod exemplify small portable content viewing devices. Broadcasting TV
content to mobile phones is the latest frontier of convergence that is being
explored and will be especially popular in in-car devices.
Some of the key challenges that emerge are
• Generation X mobile need to be compatible with a variety of radio
spectrums for manufacturers to gain economies of scale through gaining
market share in multiple markets, many of which are likely to use different
spectrum.
Mapping New Media in an Era of Convergence 18
• Inherent conflict between need to design large device to provide a
practical screen size to deliver content and consumer desire to use small
devices. New rollable screens developed by Philips and Polymer Vision
may perhaps be one of the solutions to this paradox.
• Increased battery size and decreased life due to video content
• Providing internal antennas and fully integrated devices.
• Cooling of the mobiles as high powered processors will lead to heating up
device.
• Providing technology at affordable prices.
• Conflicting consumer desire to combine mobile phone and a portable
entertainment device.
WIFI AND VOICE-OVER-IP MARKET
Dual mode handsets that are WiFi enables that is provide wireless VoIP is one of
the best method for a user to reduce the mobile phone bills. Nokia in a landmark
deal with Google bundled Google talk with N770, which targets the games and
online entertainment market.
Mapping New Media in an Era of Convergence 19
PORTABLE CONTENT JUKEBOX
While the market for ipods has grown substantially, that of PCJ has not shown
much progress. This is indicative that the market for small portable mp3 players
is different from that of PCJ’s. This may be attributed to the inability of human
eye to multi task. Hence the two products have different target segments,
although, PCJ market is a subset of the portable mp3 player market. Another
contention is relevance on features; for music there are cheaper options and
demand for photo feature unclear. Thus the application of watching and
recording content seems to be the winner amongst the basket of offering.
PCJ’s are in the beginning of their product lifecycle. Despite their aesthetics,
convenience and quality, the market is poised to be a niche.
GAMING MARKET
Nokia’s N- Gage is a disruptive technology for the handheld gaming industry of
the likes of Nintendo and Sony. While the quality of games may suffer however it
has the features of a mobile and mp3 packed in too. Further one may play
wirelessly via Bluetooth against another user on N-Gage. This implies that now
even the 8-16 yrs is a target market.
Another example is that of Sony’s PlayStation Portable that enables gaming,
music, video content, and wireless capability. A la Sony’s PSP portable
Mapping New Media in an Era of Convergence 20
games/music/video device will enjoy strong market position as gaming becomes
popular and erodes market share of the Nintendo’s of the gaming world.
Although, gaming is gaining immense popularity and is being explored for
advertising too, however, a compromise on game play (processor speed,
graphics cards) to provide game functionality into phone sized device is unlikely.
COMPETITION- LAPTOP
The new technology frontier aims at business from an early adopter, who is a
frequent/long distance traveler, watched movies on planes or in hotel rooms.
However a laptop provides for CD/DVD player, better storage and all other
features offered. However one may use Bass Model to forecast sale of the
converged gadgets.
INTERNET, TELEVISION AND COMPUTER
Propensity towards customized content and on-demand television foretells active
usage of the internet as a channel to delver content. However, widespread lack
of understanding of the potential to connect different products has been a
constraint. With improved compatibility between TV and PC, better broadband
connectivity web-based on demand TV will become popular. This would also
Mapping New Media in an Era of Convergence 21
require content providers, aggregator and access providers to come together
through alliances. An example being that of the merger of Time Warner and AOL
and Vivendi and Seagram.
IPTV offers a two-way capability which is lacking in traditional TV distributors as
well as point to point distributors. Also, IPTV will encourage user interactivity as
the technology evolves. However, these services are made available through
digital cable TV too. IPTV unicast broadcasts are much more efficient bandwidth
users as compared to traditional cable broadcasts, for they allow the user to
exercise a choice about what one would like to view. Moving the traditional
viewer to this model as well as facing stiff competition from traditional operators
seem to be two hurdles that lie ahead. This in turn will lead to the consumer
emerging as the ultimate beneficiary.
The multimedia web content has become increasingly viable, live feed, streaming
videos. However, in the future the focus of development of content for PC will
switch to that for Television as the infrastructure is developed to support the
technology.
The on-demand experience will differ considerably between TV,PC and alterative
viewing devices.films2.com portal of the Filmgroup offers on-demand content.,
Mediastation offers on-demand gaming and edutainment for both TV and PC.TV
experience is being made more interactive and customized. The distance
Mapping New Media in an Era of Convergence 22
between TV and PC is being bridged using Internet portal style Electronic Portal
Guide (EPG).
The bandwidth constraint is being met through local hosting of content by the ISP
or a specialist media delivery service such as Akamai’s. While TV and PC are
coming closer through increased reach of broadband services, the key concern
that emerges is that of the organization that will control the broadband enabled
Set Top Boxes STB markets. The TV content providers who successfully bundle
broadband technology and on-demand content services may be better equipped
to the web based on-demand TV markets of the future.
Some of the market opportunities for on demand TV stem from
• Pay-TV competition
• Emergence of digital TV
• Growth of internet encouraging interactivity
• Consumer’s demand for premium TV content independent of linear
schedules.
Personal Video Recording (PVR) is key to satellite operators winning and
retaining subscribers. This has successfully reduced the churn (people cancelling
subscription) as people watch what they like and without advertisements.
Mapping New Media in an Era of Convergence 23
This foretells a need to change the advertising model. While the TV advertising
market will not die for it is a major revenue source, it may need to be revamped
to include product placement in the shows, sponsored programs, use of celebrity
endorsement, discrete on-screen mini-adverts or logos during program. TiVo
which had successfully promoted the ability to skip ads has been forced to allow
for pop-ups during fast forwarding. Further growth of digital cable penetration and
IPTV services will improve focused advertising and hence establish a better
reach to the potential consumers, based on access to socio-economic and
psychographic information.
THE ROAD AHEAD – PASSWORD IS THE KEY
• Newsprint subscription has gone down. There has been a substantial
growth in budgets, website content, online advertising and online
newspaper.
• Online Journalism and Blogging - capture extensive coverage, viewpoints
and consumers comments through websites likeSchobleizer.com,
Pagalguy.com, ICICI (corporate websites), mouthshuts (voice of
consumer).
• Nanotechnology, floppy screen, electronic newspaper, and real time
information will be the key drivers of innovation. A floppy screen provides
displays that are bright and easy to read even in direct sunlight. Plastic
Mapping New Media in an Era of Convergence 24
semiconductors have already found their way into a number of electronic
gadgets. This high-tech innovation is incremental and will likely become a
common standard for screens on large number of devices.
• Films and Television – the latest trend would be movie hall on the net like
Rajshree Productions targeted NRI’s for Vivaah through broadband.
Similarly, Eros International signed a deal with Singapore based
entertainment company Anytime for providing on-demand bollywood
content.
• National Broadband Television- Australia’s National TV provides content
to PC
• Mobiles- exemplify convergence.
• Google- search has become the biggest thing in the internet space.
Google is an industry leader in the methodology of advertising and
targeting segments and successfully monetized media assets.
• Internet- Instant Messenger has 48.8 million users and offers mobile
connectivity, RSS feeds, Pictures, PC-PC calls.
• Personal Broadcasts – that is, developing content and broadcasting it. It
not only satiates creative energies but also feeds the consumers ego.
However, this implies a requirement of a media syndication server to track
user and usage, establish security features and domains where one may
publish. This is a very cost effective tool.
• YouTube.com – exemplifies power of new media and shared content.
Mapping New Media in an Era of Convergence 25
• Viral Marketing – cost effective tool for improved reach, creating a buzz,
increased distribution which is based on triggering a chain reaction.
• Microsoft Entertainment Domination Plan
XBOX 360- Microsoft has tied up with CBS, MTV Networks,
Paramount Pictures, Turner Broadcasting, UFC and Warner Bros.
Home Entertainment to Digitally Deliver TV Shows and Movies to
Gamers. This is a move towards turning their Xbox gaming system
into a full-fledged digital entertainment system.
Zune – microsoft’s answer to ipod that offers handheld digital
music/video content.
• Traditional Media will continue to attract advertisements given the reach
and ability to effectively to cater to branding initiatives .They are
established brands in quality and delivery of content.
CHALLENGES ON THE TECHNOLOGY FRONTIER
Looking forward there emerge some challenges that need to be dealt with
simultaneously
• Impact of pervasive availability of technology and its misuse,
• Identification of solutions that the technology addresses.
• Leverage technology to develop customer focused products that are
simple to use.
Mapping New Media in an Era of Convergence 26
• Avoiding convergence because it is possible, an example being the failure
of BenQ’s DC S40 camera which can play mp3 files.
• Willingness to adapt is more a function of price than reluctance to adapt
new technology
To conclude, success of convergence will be function of the ability of capture a
critical mass, establish infrastructure, deregulation, free space for competition,
need for beauraucratic change and specialists.
Mapping New Media in an Era of Convergence 27
REFERENCES
Pramath Sinha – Managing Director, ABP
Nikhil Mirchandani – Managing Director, National Geographic Channel India
Rahul Nanda - Vice President, Webchutney
Prem Panicker – Managing Editor, Rediff.com
Manish Vij – Co-Founder and Business Head, Quasar
Raj Singh- Co-Founder and Executive Director, ActiveMedia Techonology
Brand Strategies for the Multichannel Environment (Reuters) – Ian Thompson
Future of Convergence (Reuters) - Gary Eastwood
If You Want to Lead Blog (HBR)–Jonathan Schwartz
How E-commerce will Trump Brand Management (HBR) – Peter Sealey
The New Indian Consumer (HBR) – Ashok Gopal and Rajesh Srinivasan
techcrunch.com
Mapping New Media in an Era of Convergence 28
EXHIBITS
Mapping New Media in an Era of Convergence 29
Global Mobile Tv Handset Shipments (in million)
Units Shipped 2004 2005 2006 2007 2008 2009
All Handsets 626.4 686.4 743.2 802.1 876.5 935.1
Mobile TV Handsets 0 1.4 5.4 27.3 72.6 166.9
Mobile TV Handsets (% of total) 0 0.2 0.7 3.4 8.3 17.8
Paying Mobile TV subscribers 0 0.4 2.1 12.9 31.3 68.5
Mapping New Media in an Era of Convergence 30
Asia Pacific Mobile TV Handset Shipments (in million)
Units Shipped 2004 2005 2006 2007 2008 2009
All Handsets 239.2 283.4 317.1 348.8 380.7 406.5
Mobile TV Handsets 0 1.4 4.4 12.6 32.4 74.4
Mobile TV Handsets (% of total) 0 0.5 1.4 3.6 8.5 18.3
Paying Mobile TV subscribers 0 0.4 1.7 5.1 11.3 23.8

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Mapping New Media in an Era of Convergence

  • 1. Mapping New Media in an Era of Convergence 1 MAPPING NEW MEDIA IN AN ERA OF CONVERGENCE BY DILPREETA VASUDEVA INDIAN SCHOOL OF BUSINESS CLASS OF 2007
  • 2. Mapping New Media in an Era of Convergence 2 TABLE OF CONTENTS TOUCHING THE LIVES OF ONE AND ALL- INTRODUCTION ......................................................... 3 CONSUMER EMPOWERMENT ............................................................................................................... 4 MARKETING IN THE NEW WORLD ....................................................................................................... 5 FORMALIZING BLOGGING.................................................................................................................... 10 THE TECHNOLOGY FRONTIER ........................................................................................................... 11 SERVICE PROVIDERS............................................................................................................................ 12 CONTENT PROVIDERS .......................................................................................................................... 12 MOBILE DEVICES.................................................................................................................................... 13 PERSONAL DIGITAL ASSISTANTS AND SMARTPHONES........................................................... 14 THE MUSIC MARKET.............................................................................................................................. 16 THE CAMERA MARKET ......................................................................................................................... 17 THE TELEVISION MARKET................................................................................................................... 17 WIFI AND VOICE-OVER-IP MARKET................................................................................................... 18 PORTABLE CONTENT JUKEBOX ....................................................................................................... 19 GAMING MARKET ................................................................................................................................... 19 COMPETITION- LAPTOP........................................................................................................................ 20 INTERNET, TELEVISION AND COMPUTER....................................................................................... 20 THE ROAD AHEAD – PASSWORD IS THE KEY............................................................................... 23 CHALLENGES ON THE TECHNOLOGY FRONTIER........................................................................ 25 REFERENCES........................................................................................................................................... 27 EXHIBITS ................................................................................................................................................... 28
  • 3. Mapping New Media in an Era of Convergence 3 MAPPING NEW MEDIA IN AN ERA OF CONVERGENCE TOUCHING THE LIVES OF ONE AND ALL- INTRODUCTION Entertainment, Media and technology are converging as never before. The digital revolution is being led by several industries; communication industry for providing infrastructure, entertainment industry for delivering content, consumer electronics industry for product development and semi conductor industry for the grey matter. Digital Revolution means different things to different players. To a consumer it implies more features being made available in a single device. To a media providers and conglomerates it implies a struggle to be competitive in the market place. To device manufacturers it implies staying ahead of the curve in breakthrough technology and innovation to gain customers as the penetration rates increase. Consumer electronics are becoming an indispensable part of everyday life like mobiles, PDA’s, mp3, digital cameras, DVD’s, DVR’s, digital televisions, gaming devices. Consumers are demanding more functions in the same device, mobile phones with MP3 players, cameras with email access, video recorders with hard drives are cases in example. However delivery of such devices poses challenges on many fronts affecting user interface, software, hardware, communications,
  • 4. Mapping New Media in an Era of Convergence 4 semi-conductors and manufacturing. Most often the challenge is to introduce a faster, smaller, cheaper and more reliable technology. Convergence is the action word. A PlayStation 2 which is a game console, CD player, DVD player and internet connector; a Mobile phone with a digital camera, camcorder, radio and voice recorder exemplify convergence. Another case in example is the emergence of fixed and mobile telephony convergence. The aim is to switch between both services with a single phone, which could be between networks automatically and seamlessly. CONSUMER EMPOWERMENT The consumer is no longer willing to pay a premium for exclusivity as pirates have made content freely available online with the growth ofP2P networks. Content protection and digital rights management has become a growing concern in this environment. Increasingly content providers are themselves making content available. Launch of movies on television, streaming news bites, ringtones being some examples. New media has encouraged the customer to move out of his passivity and instead assume control, interact and influence like minded individuals, actively solicit information from anywhere as well as made the marketing process a lot more transparent. There is a need to lend the concept of convergence a
  • 5. Mapping New Media in an Era of Convergence 5 consumer perspective. This would imply creating one basket, enabling end user to access any information, through a channel of their choice, anywhere and anytime. MARKETING IN THE NEW WORLD In the digital age the focus is shifting from a market oriented approach to a consumer orientated approach. The focus is on the 8-18 years segment. The cost of partial attention is high and is becoming difficult to catch the viewer’s attention. Prime time has become a fallacy. Prime time today is customized as per the segment that it is marketed to. Different target groups watch television at different hours and therefore there is targeted advertising. Balaji production exemplifies making post 8.30 pm shows prime time, focusing on houswives.Similarly professionals and business personnel’s prefer to watch news early morning. Prime time is being customized to lifestyle of consumer. A consumer is becoming both demanding in breadth and depth of content as well as is keen on on- demand entertainment. Technology is becoming disruptive for traditional media. An example of the same is youtube which has all music videos. The relevance of traditional media is diminishing. Viral activities on the likes of youtube and myspace have decreased
  • 6. Mapping New Media in an Era of Convergence 6 the cost of advertising substantially and leveraged on the creative energies of the consumer. Consumer involvement and empowerment is driving the content. Self made movies, promotions, creative’s are launched and have become a cult. Branding has been repositioned as a strategy. Successful branding will be when people will talk about the brand rather than the brand speaking about itself. Blogging and creating communities will be the contemporary strategies that corporates will need to embrace. Traditional Media will continue to attract advertisements given the reach and ability to effectively to cater to branding initiatives. They are established brands in quality and delivery of content. Traditional Broadcaster are trying to be aggregators, however, this is not their specialization. There is a need for both backward and forward integration however, it is not lucrative in the present scenario. Incumbents would need to be flexible and ready to adapt to the changing trends. New media is critical to the traditional players due to the reach and distribution strength that is inherent in the model. Thus there is a need for traditional media to understand the new players, the role in the industry, embrace technology and new mediums, balance their business portfolios and build alliances. Sunsilk is an example of having leveraged on traditional media for its gang of girls campaign A smaller screen, mobility of device and multiple uses that it offers are prime deciding factors that influence purchase. Smaller the screen he better it is. The
  • 7. Mapping New Media in an Era of Convergence 7 device with maximum potential in the future is the mobile. The potential for this needs to be tapped and has maximum research and value added features being added to it. Webcasts and podcasts are being aired and have become a method of promotions. Cadburys ran it s campaign by wishing students as they checked their board results through a service provider. This demonstrates the use of effectively targeting one’s marketing segment. Customer lock in is critical for the Screenagers (mobile users). One of the best suited examples is that of orkut which has got its users habituated as well as. Orkut has successfully won the mind share of users as often there are offline discussions thus involving the user even post usage. Brands can effectively target niche requirements; Nike launched shoes through which one can connect to ipod through and monitor calories. There is an opportunity for each individual to be a journalist. News channels are leveraging on the same too. Power base is shifting to consumer based journalism 80% of media by 2020 will be digital. Myspace.com is a platform that thrives on consumer driven content. The advertising budgets of some the major brands like Sears, McDonalds, Chevrolet mimic the GDP’s of some small nations. The non advertising budgets like those of promotions, trade allowances, sweepstakes, coupons and sponsorship exceed even those amounts. However, the returns are not very
  • 8. Mapping New Media in an Era of Convergence 8 encouraging. This can be partially attributed to television advertising becoming less effective yet more expensive. Of the many rationale, shrinking network of audience, increased competition and decreased points of differentiation are some of them. Credibility of traditional media as a marketing tool is declining and therefore avenues in new media are being explored. Knowledge is power and the internet can be directed to gain maximum insights into consumer behavior and aspects influencing their purchase decision and factors motivating their consideration set. One of the methods to overcome traditional brand management is to emphasize on the process over the product, Unique Organization Value Proposition over Unique selling Proposition; organizational reputation, product performance, product, customer portfolio and network over the 4 P’s of product, place, price and promotion. Technology has made tracking customer usage, making recommendation based on history cost effective and minimized the amount of resources required. Amazon, eBay, Google, Dell to quote a few, have used customization features effectively and influence buyers in subtle ways. Another differentiator will be the ability of firms to offer in depth information and inculcate a passion for the product in a competitive environment. Harley Davidson, Snap-On and Iams to name a few have not used mass media to build their brand identity. This phenomenon has become more imitable in the age of new media, which supports building loyalty and profitability with decreased expenditure. For the niche players the focus will shift from
  • 9. Mapping New Media in an Era of Convergence 9 competing on value to competing on radical marketing and techniques that win publicity and appeal to customers. Permission marketing has become a trend, whereby a dialogue about the product is initiated with the customer through voluntary participation. This is perceived as a best practice in the virtual space. Although, some of the most well known companies have been charged for phishing on more than one occasion. Permission marketing further helps segment the market and target it better; determine service levels, level of interest, potential of customer, as well offer customization. Traditional marketing in contrast is considered to be “interruption marketing”. Electronic communication is cheaper, better targeted, faster, highly customizable and simpler and convenient for the customer. Another advantage has been the ability of manufacturers to build on a direct marketing model by avoiding any intermediaries like wholesalers and retailers. This has the potential of making the market more price competitive. Even for the distributors the model replaces inventory with information. Most importantly, today one doesn’t know who or where one’s customer is. It has become difficult to put a face to her and this emerges as one of the biggest challenges. Therefore reach has become a driving force and is critical to success.
  • 10. Mapping New Media in an Era of Convergence 10 FORMALIZING BLOGGING Blogs can be written and read by anyone, anywhere. It is emerging as one of the most powerful tools and is said to have the gunpowder to the like of emails. In the age of globalization, multi national companies stand to gain from the level of interaction that one may initiate within the company. Not only is it a two way and open channel of communication but establishes transparency to the internal customers of a company. Sun Microsystems has integrated blogs to drive motivation and morale amongst its workforce by recognizing high performing employees in the hall of fame on their blog. Additionally blogs are an ideal mechanism to encourage entrepreneurial spirit through sharing of ideas and driving innovative thinking and encourage actively learning through others experience. This channel of communication extends to external customers too. It can be successfully used to reach the customer as an influencing tactic, conducting marketing research, delving into their mind space as well as initiating high involvement at their end leading to customer empowerment. Furthermore, tracking competition industry trends and market mapping will be made easier and lead to effective market segmentation.
  • 11. Mapping New Media in an Era of Convergence 11 Such a participative forum initiates a sense of belonging to a virtual world and this virtual world will not only lead to individuals identifying themselves with communities that one aspires to cultivate but also will be brands in themselves. Bloggers will be spokespersons and brand ambassadors of their ideas and of the era to follow. For the corporate players that do nurture this trend it would only be prudent to observe certain caveats and seek active involvement from their legal and corporate communication teams. However, one cannot disregard the threat posed by miscreants and negative impact on one’s brand through blogging, especially since it is difficult to gain timely information of any negative publicity, track a blogger and constrain his opinion .This poses to be one of the main challenges in the future in brand management. THE TECHNOLOGY FRONTIER The ambit of a mobile phone today extends to ever growing features and applications. There are two key enabling technologies of this era. First, conversion of analog to digital communication which opens up possibilities for capturing, storing, processing, transmitting and presenting a wide variety of data not possible before. Second, the Internet Protocol (IP) based devices that allow fixed and wireless communication devices to be transmitted across broadband
  • 12. Mapping New Media in an Era of Convergence 12 internet and hence provide a fast and cheap medium for voice, data and video transfer. SERVICE PROVIDERS Consumers are increasingly willing to forego the advantages of purist devices for converged devices that enable multi-tasking and has a potential to avail subsidies through network operators. The role of the network operator or Service Provider, as the gatekeeper of the functionality of mobile phones in their network, is crucial. Operators will encourage greater spend and generate higher ARPU’s (Average Revenue Per User) through charges for downloading of content. Providing value added services like back up of downloaded content will also help reduce operator churn and build customer lock-in. As they function in a competitive marketplace service providers may cater to exclusive content though corporate tie ups. CONTENT PROVIDERS Content developers have been resistant to developing a holistic approach to brand/content. Digitizing of back-content has become a necessity given the level of piracy. Content owners will no longer be able to survive on a linear content
  • 13. Mapping New Media in an Era of Convergence 13 distribution model. They will also need to create scaleable content distribution platforms in order to meet the content demands of consumers via a range of converged devices. Some of the reasons for lack of substantial improvement on this front can be attributed to • investment required to build such a platform • perceived lack of consumer demand • complexity of rights issues • lack of visionary foresight A centralized content database is a potential solution. The centralized e-tailer (like iTunes/Napster) can be country specific websites given the complicated viewing rights and some global platforms that offer content irrespective of regions. Such a step will also help in satiating the concern of content providers of the security of the content, its marketing and positioning and evoke responsibility of the network operator for distribution of content. MOBILE DEVICES Some of the trends that have mobile poised for the technology revolution and portend maximum convergence are • The global market for mobile entertainment is predicted to be worth $40bn by 2010.
  • 14. Mapping New Media in an Era of Convergence 14 • Ubiquity and convenience of mobile phones • popularity of text messaging feature • potential of audio-based mobile music services to exceed $ 11 bn by 2010 The consumer electronic industry is working on projects parallel to the mobile phone market. They seem to enjoy the benefit of technical developments globally while content providers still seem to be in the infancy stage. Mobile users offer a much larger segment that will be willing to try out new and innovative mobile phone products that would be specifically designed to meet the media. Further, mobile phone manufacturers will have an opportunity to cater towards a relatively large segment of lead users. This relative ease of marketing new generation mobiles can be attributed to first, affordability of mobiles as compared to other high tech products. Second, cell phones and entertainment are both experienced by even low-income households. and hence is a mature market in that respect.. PERSONAL DIGITAL ASSISTANTS AND SMARTPHONES Demand for rich content and services and 3G network is being serviced through two types of mobile handsets. PDA’s (handheld computers- Palm’s Treo 650) and smartphones
  • 15. Mapping New Media in an Era of Convergence 15 The market for PDA’s especially for business users remains a viable one even if smartphones have stolen the smart device mind share of consumers. Blackberry is the leader for email-enabled PDA devices and is essentially regarded as leading the market for wireless email access for business community. Similarly Motorola’s partnership with Apple seems to indicate that there is convergence between the two devices. The assumed primary functions of PDA’s and smartphones, emerge as their main differentiator. While PDA’s are often used to manipulate and use data irrespective of voice capability, smart phone on the other hand are primarily used for voice communication and used for entertainment functions. Interesting an actual purchaser of smartphones is in the age group of 35+.This may be attributed to purchasing power and an ascription orientation. However, the age group of 18 years and above has been identified as the most active user. Although smartphones are projected to triple their sale by 2010 however presently they have some deterring factors. • high price of gadget and wireless data network services. • they are both bulky and big. • low battery life due to substantial energy consumption to activate features.
  • 16. Mapping New Media in an Era of Convergence 16 These hurdles will be overcome given Moore’s Law and Research & Development initiatives that will help shrink storage and improve battery performance. THE MUSIC MARKET The rationale of music’s portable leadership is first, the ability of people to multi- task when listening to music and second, small file size as opposed to video content. Nokia’s N series (N 70, N90 and N91 models) and Sony Ericsson’s revival of the Walkman brand with the launch of W800 seem to indicate that mobile phones in a matter of time may prove to be the “ipod killers”. However, if we are to extrapolate our learning from the existence of digital cameras despite camera enabled phones, it is unlikely that music player market will suffer in the near future. The operators favor modest capacity flash- based music phones especially due to pressure to subsidies device purchase and as a means to limit the extent to which a customer spends time on non-revenue generating activities. Though there exists a caveat with respect to which capacity may be manipulated for, a dissatisfied customer is more likely to switch to exclusive music devices. Hence enhanced customer interface will be the potent weapon to grow the market by attracting the casual music consumer.
  • 17. Mapping New Media in an Era of Convergence 17 The segment that mobile will fail to capture will thus be of a savvy and heavy user and that of quality of music and brand conscious users. Motorola’s partnership with Apple suggests that there exists a potential for the convergence of the two devices mobile and ipod. THE CAMERA MARKET Nokia is the leading vendor of camera phones. The N series supports direct connections to Yahoo!’s popular Flickr picture sharing service with tagging function. THE TELEVISION MARKET Archos’ Jukebox, Pace’s PVR2GO, Sony’s PSP, Thomson’s Lyra and Apple’s video ipod exemplify small portable content viewing devices. Broadcasting TV content to mobile phones is the latest frontier of convergence that is being explored and will be especially popular in in-car devices. Some of the key challenges that emerge are • Generation X mobile need to be compatible with a variety of radio spectrums for manufacturers to gain economies of scale through gaining market share in multiple markets, many of which are likely to use different spectrum.
  • 18. Mapping New Media in an Era of Convergence 18 • Inherent conflict between need to design large device to provide a practical screen size to deliver content and consumer desire to use small devices. New rollable screens developed by Philips and Polymer Vision may perhaps be one of the solutions to this paradox. • Increased battery size and decreased life due to video content • Providing internal antennas and fully integrated devices. • Cooling of the mobiles as high powered processors will lead to heating up device. • Providing technology at affordable prices. • Conflicting consumer desire to combine mobile phone and a portable entertainment device. WIFI AND VOICE-OVER-IP MARKET Dual mode handsets that are WiFi enables that is provide wireless VoIP is one of the best method for a user to reduce the mobile phone bills. Nokia in a landmark deal with Google bundled Google talk with N770, which targets the games and online entertainment market.
  • 19. Mapping New Media in an Era of Convergence 19 PORTABLE CONTENT JUKEBOX While the market for ipods has grown substantially, that of PCJ has not shown much progress. This is indicative that the market for small portable mp3 players is different from that of PCJ’s. This may be attributed to the inability of human eye to multi task. Hence the two products have different target segments, although, PCJ market is a subset of the portable mp3 player market. Another contention is relevance on features; for music there are cheaper options and demand for photo feature unclear. Thus the application of watching and recording content seems to be the winner amongst the basket of offering. PCJ’s are in the beginning of their product lifecycle. Despite their aesthetics, convenience and quality, the market is poised to be a niche. GAMING MARKET Nokia’s N- Gage is a disruptive technology for the handheld gaming industry of the likes of Nintendo and Sony. While the quality of games may suffer however it has the features of a mobile and mp3 packed in too. Further one may play wirelessly via Bluetooth against another user on N-Gage. This implies that now even the 8-16 yrs is a target market. Another example is that of Sony’s PlayStation Portable that enables gaming, music, video content, and wireless capability. A la Sony’s PSP portable
  • 20. Mapping New Media in an Era of Convergence 20 games/music/video device will enjoy strong market position as gaming becomes popular and erodes market share of the Nintendo’s of the gaming world. Although, gaming is gaining immense popularity and is being explored for advertising too, however, a compromise on game play (processor speed, graphics cards) to provide game functionality into phone sized device is unlikely. COMPETITION- LAPTOP The new technology frontier aims at business from an early adopter, who is a frequent/long distance traveler, watched movies on planes or in hotel rooms. However a laptop provides for CD/DVD player, better storage and all other features offered. However one may use Bass Model to forecast sale of the converged gadgets. INTERNET, TELEVISION AND COMPUTER Propensity towards customized content and on-demand television foretells active usage of the internet as a channel to delver content. However, widespread lack of understanding of the potential to connect different products has been a constraint. With improved compatibility between TV and PC, better broadband connectivity web-based on demand TV will become popular. This would also
  • 21. Mapping New Media in an Era of Convergence 21 require content providers, aggregator and access providers to come together through alliances. An example being that of the merger of Time Warner and AOL and Vivendi and Seagram. IPTV offers a two-way capability which is lacking in traditional TV distributors as well as point to point distributors. Also, IPTV will encourage user interactivity as the technology evolves. However, these services are made available through digital cable TV too. IPTV unicast broadcasts are much more efficient bandwidth users as compared to traditional cable broadcasts, for they allow the user to exercise a choice about what one would like to view. Moving the traditional viewer to this model as well as facing stiff competition from traditional operators seem to be two hurdles that lie ahead. This in turn will lead to the consumer emerging as the ultimate beneficiary. The multimedia web content has become increasingly viable, live feed, streaming videos. However, in the future the focus of development of content for PC will switch to that for Television as the infrastructure is developed to support the technology. The on-demand experience will differ considerably between TV,PC and alterative viewing devices.films2.com portal of the Filmgroup offers on-demand content., Mediastation offers on-demand gaming and edutainment for both TV and PC.TV experience is being made more interactive and customized. The distance
  • 22. Mapping New Media in an Era of Convergence 22 between TV and PC is being bridged using Internet portal style Electronic Portal Guide (EPG). The bandwidth constraint is being met through local hosting of content by the ISP or a specialist media delivery service such as Akamai’s. While TV and PC are coming closer through increased reach of broadband services, the key concern that emerges is that of the organization that will control the broadband enabled Set Top Boxes STB markets. The TV content providers who successfully bundle broadband technology and on-demand content services may be better equipped to the web based on-demand TV markets of the future. Some of the market opportunities for on demand TV stem from • Pay-TV competition • Emergence of digital TV • Growth of internet encouraging interactivity • Consumer’s demand for premium TV content independent of linear schedules. Personal Video Recording (PVR) is key to satellite operators winning and retaining subscribers. This has successfully reduced the churn (people cancelling subscription) as people watch what they like and without advertisements.
  • 23. Mapping New Media in an Era of Convergence 23 This foretells a need to change the advertising model. While the TV advertising market will not die for it is a major revenue source, it may need to be revamped to include product placement in the shows, sponsored programs, use of celebrity endorsement, discrete on-screen mini-adverts or logos during program. TiVo which had successfully promoted the ability to skip ads has been forced to allow for pop-ups during fast forwarding. Further growth of digital cable penetration and IPTV services will improve focused advertising and hence establish a better reach to the potential consumers, based on access to socio-economic and psychographic information. THE ROAD AHEAD – PASSWORD IS THE KEY • Newsprint subscription has gone down. There has been a substantial growth in budgets, website content, online advertising and online newspaper. • Online Journalism and Blogging - capture extensive coverage, viewpoints and consumers comments through websites likeSchobleizer.com, Pagalguy.com, ICICI (corporate websites), mouthshuts (voice of consumer). • Nanotechnology, floppy screen, electronic newspaper, and real time information will be the key drivers of innovation. A floppy screen provides displays that are bright and easy to read even in direct sunlight. Plastic
  • 24. Mapping New Media in an Era of Convergence 24 semiconductors have already found their way into a number of electronic gadgets. This high-tech innovation is incremental and will likely become a common standard for screens on large number of devices. • Films and Television – the latest trend would be movie hall on the net like Rajshree Productions targeted NRI’s for Vivaah through broadband. Similarly, Eros International signed a deal with Singapore based entertainment company Anytime for providing on-demand bollywood content. • National Broadband Television- Australia’s National TV provides content to PC • Mobiles- exemplify convergence. • Google- search has become the biggest thing in the internet space. Google is an industry leader in the methodology of advertising and targeting segments and successfully monetized media assets. • Internet- Instant Messenger has 48.8 million users and offers mobile connectivity, RSS feeds, Pictures, PC-PC calls. • Personal Broadcasts – that is, developing content and broadcasting it. It not only satiates creative energies but also feeds the consumers ego. However, this implies a requirement of a media syndication server to track user and usage, establish security features and domains where one may publish. This is a very cost effective tool. • YouTube.com – exemplifies power of new media and shared content.
  • 25. Mapping New Media in an Era of Convergence 25 • Viral Marketing – cost effective tool for improved reach, creating a buzz, increased distribution which is based on triggering a chain reaction. • Microsoft Entertainment Domination Plan XBOX 360- Microsoft has tied up with CBS, MTV Networks, Paramount Pictures, Turner Broadcasting, UFC and Warner Bros. Home Entertainment to Digitally Deliver TV Shows and Movies to Gamers. This is a move towards turning their Xbox gaming system into a full-fledged digital entertainment system. Zune – microsoft’s answer to ipod that offers handheld digital music/video content. • Traditional Media will continue to attract advertisements given the reach and ability to effectively to cater to branding initiatives .They are established brands in quality and delivery of content. CHALLENGES ON THE TECHNOLOGY FRONTIER Looking forward there emerge some challenges that need to be dealt with simultaneously • Impact of pervasive availability of technology and its misuse, • Identification of solutions that the technology addresses. • Leverage technology to develop customer focused products that are simple to use.
  • 26. Mapping New Media in an Era of Convergence 26 • Avoiding convergence because it is possible, an example being the failure of BenQ’s DC S40 camera which can play mp3 files. • Willingness to adapt is more a function of price than reluctance to adapt new technology To conclude, success of convergence will be function of the ability of capture a critical mass, establish infrastructure, deregulation, free space for competition, need for beauraucratic change and specialists.
  • 27. Mapping New Media in an Era of Convergence 27 REFERENCES Pramath Sinha – Managing Director, ABP Nikhil Mirchandani – Managing Director, National Geographic Channel India Rahul Nanda - Vice President, Webchutney Prem Panicker – Managing Editor, Rediff.com Manish Vij – Co-Founder and Business Head, Quasar Raj Singh- Co-Founder and Executive Director, ActiveMedia Techonology Brand Strategies for the Multichannel Environment (Reuters) – Ian Thompson Future of Convergence (Reuters) - Gary Eastwood If You Want to Lead Blog (HBR)–Jonathan Schwartz How E-commerce will Trump Brand Management (HBR) – Peter Sealey The New Indian Consumer (HBR) – Ashok Gopal and Rajesh Srinivasan techcrunch.com
  • 28. Mapping New Media in an Era of Convergence 28 EXHIBITS
  • 29. Mapping New Media in an Era of Convergence 29 Global Mobile Tv Handset Shipments (in million) Units Shipped 2004 2005 2006 2007 2008 2009 All Handsets 626.4 686.4 743.2 802.1 876.5 935.1 Mobile TV Handsets 0 1.4 5.4 27.3 72.6 166.9 Mobile TV Handsets (% of total) 0 0.2 0.7 3.4 8.3 17.8 Paying Mobile TV subscribers 0 0.4 2.1 12.9 31.3 68.5
  • 30. Mapping New Media in an Era of Convergence 30 Asia Pacific Mobile TV Handset Shipments (in million) Units Shipped 2004 2005 2006 2007 2008 2009 All Handsets 239.2 283.4 317.1 348.8 380.7 406.5 Mobile TV Handsets 0 1.4 4.4 12.6 32.4 74.4 Mobile TV Handsets (% of total) 0 0.5 1.4 3.6 8.5 18.3 Paying Mobile TV subscribers 0 0.4 1.7 5.1 11.3 23.8