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STUDENT NAME: STIENBERG TAN GEOK YONG Email: robin.stienberg@yahoo.com
I/C Number S7234046I Tel: +65-87421029
Student number: TM15-10163 A TMC Academy Higher Diploma
Essay Project Copyright 2016, All Rights Reserved.
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The Rise of New Disruption
HOW THE MEDIA INDUSTRY MEETS MILLENIALS AND THE FUTURE
STIENBERG TAN GEOK YONG | MED110 | December 12, 2016
Stienberg Tan Geok Yong – IC S7234046I
MED110/2016
TMC Essay – Assignment
PAGE 1
Content
Life before and after…………page 1
Who are the Millennials? ……page 6
The TV Industry Case Study...page 11
The Industry Shifts…………...page 21
What are factors and Causes…page 30
What are Players Doing? ...page 33
The Players Trends………...page 37
Conclusion…………...page 39
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Life before and after Television
Times were great when Television first establish in our living rooms globally since the
invention of television by John Logie Baird the father of television who pioneer new
ways to be entertain and receive. It happens in the year March 25th, 1925 in New York
and then came about the first Television Station in 1928, WRGB also know back then
WGY TV and where as in Japan as well in December 25th in 1926, Kenjiro Takayanagi
also invented a 40-line resolution television.
Other countries jump on board to invent and reinvent television such as the Russians
By 1940, John Logie Baird demonstrated colour television and in 1944, August 16 – 3D
TV (Stereoscopic) was also confirmed. These resulted millions of colour television sets
were sold globally to meet the demand. However, will that last?
In the beginning, also TV Channels or Terrestrial Television are very limited and only
licensed by the government. Then after many years later, television although had served
its purpose to the members of the public, internet television arrives without warning such
as Vimeo and YouTube gave a new rise and challenge to conventional television stations.
It saw a sudden fall of sales affecting viewership, sponsorship, advertiser’s and even as
much as decreased sales of CD and DVD sales resulting closure of CD and DVD rental
and retail stores across United States and around the globe.
What has happened? Has Television evolve? Yes indeed, in the 1990’s smart television
began to arrive in the living rooms with a wider range of capabilities.
Such skills resulted that no longer there is a reliance on television networks such a
MediaCorp, ABC, CNN or even FOX television stations are needed to provide content or
entertainment but rather it is the online or internet or dare say the new media is the new
wave to enhance the experience for the viewers daily 24/7 and it is customize within the
control of the customer or audience. Has the behavior change? Yes indeed and we will
observe the following chapter which is the Millennials and beyond that would impact the
new world as we see it.
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According to the report by Marketing Charts.com and Nielsen Data for Q1 2011 to Q2
2016, Millennials attention span on conventional television has drop from 16.18 mins in
the 1st Quarter of 2016 to now in the 4th Quarter of 2016 is entirely redundant.
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In the next update report by Forbes – Digital Democracy shows that Millennials from
ages 14 – 30 years are leading the way and growing very quickly and in demand for more
content.
The question that the industry raise was as follows:
1. Would not be better for Netflix, HBO Now, VUDU, Apple TV and even
AMAZON PRIME be the better content distributor rather the conventional
television stations?
2. According to Deloitte research on strategic risk management traditional models
are now switching to new landscapes such as tablets formats, smartphones and
even now the emerging holographic smartphones.
3. The death of DVD, Blue Rays and so forth tangible entertainment has come to its
end, but rather mobile entertainment is on the rise and in demand, television
stations ask themselves this question, we need to begin creating our content and
movies just the way HBO and Netflix has done and even more so looking at other
models like China, India, Israel and even Singapore. Will it work?
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The latest new Holographic Smart Phones (Above and Below) demonstration.
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Generation Y or Millennials– Who are they?
Many say Generation Y are a nuisance and spices that should have been tamed, or should
they? Many needs to be corrected by the right politics on how population control and
market size do matter that eventually contributes to economic dynamics such increase of
wealth distribution and investments.
Generation Y or Millennials are those born between 1978 – 1987, and it is said they are
never an easy generation to culturally managed because it is believe that they possessed
self-centered, confident, growing up in a diverse school, work and play environment,
very well connected and networked, technically information savvy, very enthusiastic and
achievement oriented and said to be one of the high educated generation.
According to statistics, Millennials are raised by two income families with parents
usually at work over 90% of the time. Although communication is a challenge,
Millennials develop stronger relationships with their parents, with the support of
technology and the convenient methods it is made possible to keep in contact.
Parents from wealthy background and as well as those with the sense of responsibility
focus every moment of their child’s lives and having unprecedented and well-structured
supervision on education and activities.
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Parents had their schedules extend to educational and physical activities and the need for
various and challenges.
Millennials are encouraged by their families that “You can do and make it” syndrome and
parents expectations of them is they do not get left behind and they can make it. On the
regular basis, the children often get rewards and praise based on merits or best efforts.
They were taught that they should be taken seriously and be heard.
Millennial do not believe in paying their dues, hard work is not their culture or policy,
they feel that they deserve to be heard and get it. Accomplishment drives them on their
own and they love to express their creativity and a strong desire for using their methods
and quick to go online for resources and even ask their friends and associates for
assistance. However, there is a high concern for the millennials, will shortcuts take them
far in life? Since there is no sense of morals or rule of law and everything goes mentality.
Although they are learning oriented, their aim and goal in life is self-centered.
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This is an advantage for marketing networks given the devil’s advocate which I will later
explain in this research.
Millennials love to share and collaborate in rewards, love to be coach and mentored
online and continuously to look for access to any openings and prefer to complete any
tasks or adventure on their own for the benefit of the self-esteem. Moreover, Millennials
are very curious and asking and seeking answers is their forte, so teachers and adults
must be prepared to give answers and chances to make mistakes. This is also an added
value for TV networks to engage the Millennials by recreating engagement online, offline
and real time experience.
By beyond 2016 and further, Millennials can have more spending power then any other
age group in history.
Another additional benefit is crafting loyalty with Millennials when engaged with all the
information that is needed and relevant to them they will be diligent and loyal and they
feel it is important and they are also very accustom to new ideas, challenges, and
learning.
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Lastly, the challenges of Millennials is they tend to change regularly over their personal
appetites in their life’s achievement, they will not follow or provide loyal blindly, the
company and or even entertainment needs to be socially responsible especially when
issues on corporate social responsibility is one of the top in their list, if they know that
you care about CSR they will remain loyal, and Millennials have not concerns about long
term careers and their savings.
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References
1. 15 Economic facts about Millennials, Publish by the White House – The Council
of Economic Advisors, October 2014.
(https://www.whitehouse.gov/sites/default/files/docs/millennials_report.pdf)
2. www.whymillennialsmatter.com
3. The Next America: Boomers, Millennials and the Looming Generational
Slowdown by Paul Taylor and PEW Research Center, ISBN: 978-1610393508 –
March 4th 2014
4. Marketing to Millennials: Reach the Largest and Most Influential Generation of
Consumers Ever by Jeff Fromm and Christie Garton, ISBN 978-0814433225 –
July 2nd, 2013.
5. The Millennials, Connecting to America’s Largest Generation by Thom S. Rainer
and Jess Rainer. ISBN 978-1433670039 – January 1st 2011
6. Affluent Insights 2016 Summary Report – Asian Affluent Travel Report
Generation AAA by www.affluential.com and agility research and strategy.
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The TV and Radio Industry Case Study
Now that we learn about Millennials and their behaviors and forward challenges, we will
now focus in this chapter about how television and radio industry adapt to the challenges
and reach out to the new generation, how it is outreach or evangelized in real time?
Many Television stations around the globe are now realizing the biggiest shift in all
history and it is still shaking. We now see the moving of industrial & knowledge age into
conceptual age. The media development in theoretical into the digital age has two phases
– Phases of communication and Convergence
Communication has four steps, they are Orality in verbal approach, Manuscripts which
produce for production to product, Print for newspapers and digital and electronic which
full design automated for digital audience.
As for the digital age coming from Analog to Digital – it follows through from Image,
Audio, Video, Information and Life. As Marshall McLuhan (1911-1980) said The
Medium is the Message.” Which is my point I am going to illustrate the next move for
the Industry is now using new methods to evangelize loyalty with Millennial Market.
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Today’s world with the millennials they are thriving on all forms of mobile devices that
are neat and convenient to them. As the above illustrate how times have change and how
generation after generation had decide what is in and out.
The case study we now focus is on the television networks on how they have evolve and
how and the kinds of approach to take on the new challenges.
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We will Illustrate present status of CNN and BBC new online
According to statistics based on Media Brand Values
2011 Globally QX, The European Opinion Leaders
survey 2011 and 2007 BBC .com there are ten
attributes the audience shares their insights:
Trust in the reputation of BBC is built over many years
and BBC.com is define as more trustworthy then any
other websites.
Out-Reach, BBC.com evangelizes over 15 million in just Europe alone excluding the
United Kingdom. It also has the highest monthly ratings of European Opinion Leader
audience than any other international and business news websites.
Profile, In Asia Pacific – BBC.com has even more impressive ratings and reach then any
competing media sites across keys markets such as opinion leader, top income earner, e
commerce consumer, The policy maker, Buisness Travelers and Busy executives.
Growth, BBC.com has witness incremental growth highest year on year of potential users
comparing to any international news and business website and it insists to maintain it is
position of highest monthly reach.
Global, in comscore report, 75% of CNN online audience is in the United States of
America, whereas BBC.com global distribution is as follows:
Asia Pacific – 21%
Middle East – 10%
Europe – 26%
US – 39%
BBC.com is also the most STIMULATING brand for global news by Comscore reports
in 2011 & 2012 Global.
Todate, in 2016 – BBC.com is the fastest growing news website content in the United
States with a growth of 38% month by month in the year 2010 to 2011. It is the most
rapid growth among its competitiors (CNN, Foxnews, MSNBC, CNBC, Bloomberg and
BBCAmerica).
When it comes to loyalty, 74% of BBC users do not use another news website.
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Engagement, BBC.com Western visitors spend at least an average of 12.5 minutes per
site visit, which is 69% greater then the length of time spend on CNN website by its
visitors.
Buisness Leaders, according to the EMS + CEMS Europe 2012 confirms BBC.com users
are influential business leaders.
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Above is the comprise between other news networks and BBC.
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Above is the diagram statistics of the average age of viewership of the age of 15 years
and above. Over 15 million users visit the BBC.com
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The BBC.com witness the Year on Year Growth from 2011 to 2012 and is still is the
highest reach for the international audience. (report by comScore)
The above diagrams show the market share between CNN and BBC.com websites faces a
ferocious condition’s over the millennial markets. CNN is still struggling to reach out to
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the millennials internationally compared with BBC.com, and why? The answer is simple
it’s about relevance and content according to comScore report.
Is the content stimulating?
According to the report based by Media Brand Values 2011, BBC.com has been voted
and seen as the most exciting brand and appeal in global news by Millennials.
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References
1. BBC Advertising 2014 report by British Broadcasting Corporation
2. Media Brand Values 2011 report, Globally Excluding UK against weekly users of
websites.
3. BBC.com – Transferring Trusts Summer 2010
4. EMS + CEMS Europe 2012 report
5. European Opinion Leaders Survey 2011 & 2007, BBC.com
6. BBC PAX Report Quarter 1 – Quarter 4 2011, Pax 10 markets excluding Tokyo.
7. ComScore report January 2011 & January 2012 Globally excluding United
Kingdom.
8. ComScore report April 2012 based on CNN.com and BBC.com website
algorithm.
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In this chapter, I will update the following issues and the address of how and what must
be done to cultivate the present generation and the next. The question raise by the
industry are as follows which will cover in the following moments:
 What are the Media Industry Shifts? Why, When and Where Millennials
Choosing Media Platforms?
The Media Industry Shifts is constantly changing and it cannot afford not to be forward
thinking and moving. For example, Fox Sports, has recently presented a new method on
how Millennials would stay loyal and buy in stake holding viewership, how did they
archive it? Today information technologies and services are moving with the
telecommunications and broadcasting networks convergence also known as 360-degree
provision.
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Let’s move on to the example of Fox Sports Channel App:
In this study of the above, the target group is 18 to 35 years, Those in college football and
basketball. The purpose is to encourage viewers to adopt Fox Sports Go App.
According to the data collected by Fox Sports, the following questions were asked:
How often do you watch sports?
82% says very often and Quite Often, and 18% says Sometimes and Rarely.
Are you aware that there’s an Fox Sports App available that you can access?
24% means that completely Unaware and 48% says that are Generally Unaware.
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So how Fox Sports is going to reach out to the audience? How can they keep them
engage as well is the advertiser getting their worthwhile investment?
To do so, the first thing that Fox Sport’s team had to respond to important research they
offer to the advertiser’s the following:
Sponsorship Advertising will provide key features –
 Still Image advertising shown first on commercial break
 Show features such as streaming such as streaming games, highlights and updates.
 Ensure all foreseeable application is available on laptops, mobile, desktop and
newest holographic cell phone.
Why such features? Millennials attention span is short and they are kept captivated by
entertainment in high octane. Millennials can only have kept captivated only if there is a
constant action or unusual or out of the ordinary from 12secs to 2 mins and if the content
is captivating, it could command as long as 60 mins.
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Secondly, The Script for In-Games Broadcast.
Announcer:
“Join us for all the excitement with the Fox Group app. Never miss a moment of the
game by streaming it to your mobile device with Fox Sports Go.”
“On the go, but don’t want to miss a moment of the game? Download the Fox Sports Go
app today and take the game with you everywhere you go.”
“Now we’ll show you some Next Gen Stats, brought to you by Fox Sport Go. Watch
games on Fox networks anytime, anywhere.”
In-Game Broadcast Promotions has a wide reach of 82% which watches the game and
with 10-15 second spot by commentators before/after commercial breaks or during non-
commercials timeouts.
The main strategy is posting two types of format – The first format is TV achors interact
with applictions in a quick 15-20 second spot during timeouts that do go to commercial
or back from commercial early.
The second-Hand Presentation is about having personalities talking about the app in the
background of a Fox Sports Go Graphic.
This way the above both presentations are kept captivating and exciting and keeping the
viewers on the toes and feeling weary.
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The next strategy for Fox Sports Go App is Website Advertising.
Instead of hiding the link under the watch tab, make it its tab/link to the popup window.
This is important key feature so that it provides convenient access and easy to use and see
for the millennials. It also provides a wow factor according to Fox Executives almost
over 85% seek such services and expectations – what is the NEXT thing! Or WOW
factor.
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Also, Fox Sport Go App had to expand additional
promotions on social media.
Why Social Media? Why the need to engage them on
social? There are three good reasons to this:
1. According to the reports by Starhub SmarTam
August 2015, 800,000 women ages from 18 – 35 watch
KBS World HD, VV Drama, CTI TV, TVBJ, TVB8, TVBS
Asia, E! Entertainment, HITS, FOX and Lifetime Channel
on mobile app and laptop daily in Singapore.
2. 700,000 watch Korean content according to
(Starhub SmarTam Sept 2015) report, City, VV Drama,
KBS World and One daily in Singapore.
3. Sports Market Savvy, according to (Starhub
SmarTam August 2015) – Over 648,000 viewers on Super
Sports 1,2,3,4 and Super Sports Arena Daily.
This information based on the Singapore markets
demonstrates how dynamic the Millennials react on how
information is entertain verses from the conventional television.
McDonalds Corporation, Mr. Padmanabhan Rangappa (Paddy) Vice President, APMEA
for Brand Development (2014-2015) All advertisements must built in for publicity for
television and mobile application must have three elements:
 An Emotional Human Revelation
 Relevant to the Category
 Leverage to Build and enhance the Brand
This is why McDonalds Corporation believe strongly in engagement with their customers
with social media platforms such as what Fox Sports Go App.
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Here are statistics that the Millennials membership with Fox Sports App on social media
platforms:
Social Media:
Facebook: Fox Sport Go and Fox Sports Digital combined – 100,000
Instagram – 32,681 followers
Twitter – 98,400 to 1.75 million followers
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So here are the findings we had learn from both Fox, Starhub and BBC
1. Millennials want easy access and all available resources of all sorts of platforms
for entertainment and information.
2. Millennials want the next wow factor, impressed, and forward, they are very
technology savvy and very knowledgeable, they want be challenged and outsmart.
3. Millennials are loyal only once their trust is earned through social responsibility
on the part of the content provider.
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References
 Fox Sports Go 2016 Advertising Guide by Patrick Lueders, Kilian Hunter, Tanner
Hoskin, Achea Compton and Sunvir Chopra
 Starhub Samrtam August & September 2015 report by Starhub Editorial
 Fox Sports Go and Digital Facebook report courtesy of Facebook 2016
 Fox Sports Go and Digital Instagram report courtesy by Instagram 2016
 Fox Sports Go and Digital Twitter report courtesy by Twitter 2016
 McDonalds Corporation, Mr. Padmanabhan Rangappa (Paddy) Vice President,
APMEA for Brand Development (2014-2015), A face to face interview on 28th
November 2016.
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Finally, in this last chapter, we will discuss the following questions:
 How and What are the factors and causes?
To Answer these final questions, here is the update report on the How and Factors and
Causes of such changes:
The question is what is the drive and how and factors that consumers prefer to relay on
content on Social Media and New Media platforms using smart phones and applications?
According to findings here are as follows based on “The Media Insight Project” by
Associated Press, NORC at the University of Chicago and American Press Institute a
book published entitled: A New Understanding: What Makes People Trust and Relay on
News, April 2016 Edition.
To understand this, we must first understand what today’s consumers perceive Trust.
Below is the diagram of what consumer perceive the following:
Source: A New Understanding: What Makes People Trust and Relay on News, April 2016
The previous diagram that is displayed tell us that in the findings that trust and reliability
in a news product is broken down into various factors that publishers identify:
Column1
Adults who say accuracy is important reason they trust a new source 85%
Adults who say having the latest details is a critical reason they trust a news source 76%
Adults who value news reporting that concise and to the point 72%
Digital news consumers who believe it is vital ads do not interfere 63%
Political News consumers highly value experts and data in reporting 79%
Lifestyle news consumers who say it's important their source is entertaining 53%
Facebook new consumers with a lot of trust in the news they see there 12%
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Consumers consider a publisher competent and worthy of trust vary depending on the
topic and study of finds. For example, how much the consumer values news about
politics, weather report, in depth report on politics for others the ease of use is of a higher
value and others being entertain is important.
The value of Trust in this study will show why is also important to the content creator.
Publisher’s must understands that it’s not only about journalistic aspiration, it is also
business imperative. Customers who placed higher premium on trust related products are
more engaged with news and more likely to pay for it, such as install new apps, or share
and promote news with family and friends.
The following findings in the diagram demonstrate the following points:
 Accuracy has a co-relationship with trust, eighty five percent of Americans say
that it is very important or extremely important that news organizations must get
the facts right higher than any other principal.
 The second value sought after is timeliness, according to the report three quarters
of the adults (76% percent) it is important that any news report must be up to date
with latest news and information.
 The third value sought after is clarity, 72% percent of the findings said it is very
important or important that the report is concise and gets to the point.
 The forth, Online New Media issues, according to studies it points out three
specific points and they are 1. Ads must not interfere with News voted by 63% of
the consumers, 2. 63% percent of the consumers say that it is important that the
Website or app loads runs fast, Thirdly - 3. All content works well on multiple
mobile platforms such as mobile phones voted by 60% percent of the consumer.
 1 in 3 voted that it is important for digital resources allow people to comment on
news.
 The latest discoveries in this finding in 2016, is also reasons why people trust and
rely on a news source is because it varies on the topic and relevance, example –
people say that expert opinion and data are important reason being is because it is
to source for news on domestic data than lifestyle news which is 75 percent versus
48 percent.
 Millennial Consumers want their source to be concise and get to the point for
domestic politics (80 percent vote), for sports (61 percent vote).
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 Followers of traffic and weather voted 72 percent that it is very important such
content presents well on mobile applications than consumers of domestic news
which 55 percent of the votes.
 Millennials who use social media heavily usually are highly skeptical of news
encounter on networks. 12 percent who obtain news from Facebook for example
say they trust a lot or a great deal of it. And 23% on the high end say they have
great trust in news they obtain from LinkedIn.
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 What are the Major content providers doing? What are the solutions, steps and
measures taken by players such as HBO, CNN, Disney, Singtel, Starhub or
Toggle doing? What does it mean for players for even telecom companies buying
up content providers?
Today Major players are providing new products that will engage with the millennials
such as HBO, CNN, Media Corp and Starhub in three points:
1. New platforms open new doors, and new ways of engagement such as mobile
apps, and loyalty program re-created that could not be done in the past and now it
could such as advertising and promotions of a new season of a TV series by
MediaCorp, they are able to organized live meet and greet with actors and also on
the app it has exclusive how the episode is made and character follow-up which
cannot be done on air time.
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2. Television Stations are recreating their own platforms such as TOGGLE
Singapore very own New Media Station that creates content and organizes its own
live events and community engagement. Examples display below.
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3. Even radio stations has gone digital to engage with consumers 24/7. Not just
radio, but also Radio TV BLOGS with fun filled interviews with celebrities and
even the man on the street. Branding also becomes a strong element for radio and
television as it recreates a new world for audiences to relate and coverage into
participation such marathons, games and even a call for comments and surveys in
exchange and enhance loyalty program call ME Club Online.
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Finally, what is happening today? What is the trends for Television and Radio Stations?
What is really next for them and the convergence with Telecommunications companies
meager with content providers? What is the benefit?
According to the recent global reports, (from Korea) Telecom firms buying content
providers– Korea Herald, Saturday August 12, 2006 by Hwang Si-young reported
Hanarotelecom Inc. is purchasing content providers hahTV service which has 30,000
subscribers’. Hana TV offers High Definition Video Content along with broadband and
telephony services that attracts thousands of subscribers in just 20 days after the launch.
It boasts over 22,000 video on demand content offered by over fifth content providers at
home or abroad.
Content is king says Korea Telecom spokesman, KT with wireless affiliate KTF Co has
bought 51 percent share with the largest film making company Sidus FNH Corp for
USD$29 Million in September 2005, and the KT is also the largest shareholder of
satellite Skylife.
According to Experts, trends of convergence services combining broadcasting and
telecom will continue to capture market share and loyalty for the long term.
In a news report on Financial Times in November 29, 2014 by Daniel Thomas, Henry
Mance and David Crow entitled: Telecoms groups seek share of TV Limelight:
Producing content has become a new battleground among the groups that provide internet
connections.
Even in Europe for example, in the report FT said Vodafone’s is offering TV to UK
customers which means they will aquire content providers as the most common sense to
do financially, according to Michael Goodman a digital media expert at Strategy
Analytics has this to say: Content is the way for telecommunications company to
compete with the others in the market and with new players such as Netflix and Youtube.
So we need three strong pillars – Content, Distribution and Device. And when content
internet providers buy content they have a control of at least two out of three.
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Today in the United States, Comcast has bought over NBC Universal in 2009, which
creates both a marriage of content creation and distribution in one facility.
May 2009, AT&T paid $48.5 billion for DirecTV because it has holding rights for
Sunday NFL games for Television and mobile devices.
But why the convergence and what does this mean for both the service provider and
consumer?
1. Service providers are seeking to enlarge their market share or they will see
themselves irrelevant which resulting closure and losing to new players, so to stay
ahead and control, it seeks to buy their competition and embrace for control and
profit.
2. For the consumer, it will see better performance on their applications and may or
may not result less expensive service fees for data. But they will have a wider
range of content and more flexible options.
3. Service providers and Consumers will enable to converge interests anytime,
anywhere with advance mobile entertainment in real time 24/7.
Stienberg Tan Geok Yong – IC S7234046I
MED110/2016
TMC Essay – Assignment
PAGE 39
Recommendations:
Finally, to conclude, Rupert Murdoch has this to say quote in Wired, July 2006
“To Find Something comparable, you have to go back 500 years to the printing press, the
birth of mass media. Technology is shifting power away from the editors, the publishers,
the establishment, the media elite. Now it’s the people who are taking control”.
Here are three recommendations for the industry who wants to expand in content
provision or content distribution:
1. Create a 360-degree solution which will enabled for the consumer to access easily
and obtain easily 24/7. Application must be cool, never before done and wow
factor. Never Stay complacent, always upgrade one or twice year for your
formats.
2. Industry must always embrace change, and love change, you must create and
invest along with the collaboration with lifestyle and other stakeholders that
would share the same vision and interests in your network as survival and their
financial investment is always key.
3. Millennials and the future generation are your customers and they want to be
treated as a very important customer and wants to be engage to gain their loyalty
and trust.
Stienberg Tan Geok Yong – IC S7234046I
MED110/2016
TMC Essay – Assignment
PAGE 40
References:
1. Financial Times, November 29, 2014 Telecoms groups seek share of TV
Limelight by David Thomas, Henry Mance and David Crow.
2. Telecom firms buying content providers, Korea Herald, Saturday August 12, 2006
by Hwang Si-young
3. “The Media Insight Project” by Associated Press, NORC at the University of
Chicago and American Press Institute a book published entitled: A New
Understanding: What Makes People Trust and Relay on News, April 2016
Edition.
4. http://www.mediacorp.sg/en - MediaCorp advertising information for Toggle and
Radio Online
5. Rupert Murdoch quote by Wired, July 2006

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MED110 - Essay ver 2-231116

  • 1. STUDENT NAME: STIENBERG TAN GEOK YONG Email: robin.stienberg@yahoo.com I/C Number S7234046I Tel: +65-87421029 Student number: TM15-10163 A TMC Academy Higher Diploma Essay Project Copyright 2016, All Rights Reserved. 0 The Rise of New Disruption HOW THE MEDIA INDUSTRY MEETS MILLENIALS AND THE FUTURE STIENBERG TAN GEOK YONG | MED110 | December 12, 2016
  • 2. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 1 Content Life before and after…………page 1 Who are the Millennials? ……page 6 The TV Industry Case Study...page 11 The Industry Shifts…………...page 21 What are factors and Causes…page 30 What are Players Doing? ...page 33 The Players Trends………...page 37 Conclusion…………...page 39
  • 3. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 2 Life before and after Television Times were great when Television first establish in our living rooms globally since the invention of television by John Logie Baird the father of television who pioneer new ways to be entertain and receive. It happens in the year March 25th, 1925 in New York and then came about the first Television Station in 1928, WRGB also know back then WGY TV and where as in Japan as well in December 25th in 1926, Kenjiro Takayanagi also invented a 40-line resolution television. Other countries jump on board to invent and reinvent television such as the Russians By 1940, John Logie Baird demonstrated colour television and in 1944, August 16 – 3D TV (Stereoscopic) was also confirmed. These resulted millions of colour television sets were sold globally to meet the demand. However, will that last? In the beginning, also TV Channels or Terrestrial Television are very limited and only licensed by the government. Then after many years later, television although had served its purpose to the members of the public, internet television arrives without warning such as Vimeo and YouTube gave a new rise and challenge to conventional television stations. It saw a sudden fall of sales affecting viewership, sponsorship, advertiser’s and even as much as decreased sales of CD and DVD sales resulting closure of CD and DVD rental and retail stores across United States and around the globe. What has happened? Has Television evolve? Yes indeed, in the 1990’s smart television began to arrive in the living rooms with a wider range of capabilities. Such skills resulted that no longer there is a reliance on television networks such a MediaCorp, ABC, CNN or even FOX television stations are needed to provide content or entertainment but rather it is the online or internet or dare say the new media is the new wave to enhance the experience for the viewers daily 24/7 and it is customize within the control of the customer or audience. Has the behavior change? Yes indeed and we will observe the following chapter which is the Millennials and beyond that would impact the new world as we see it.
  • 4. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 3 According to the report by Marketing Charts.com and Nielsen Data for Q1 2011 to Q2 2016, Millennials attention span on conventional television has drop from 16.18 mins in the 1st Quarter of 2016 to now in the 4th Quarter of 2016 is entirely redundant.
  • 5. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 4 In the next update report by Forbes – Digital Democracy shows that Millennials from ages 14 – 30 years are leading the way and growing very quickly and in demand for more content. The question that the industry raise was as follows: 1. Would not be better for Netflix, HBO Now, VUDU, Apple TV and even AMAZON PRIME be the better content distributor rather the conventional television stations? 2. According to Deloitte research on strategic risk management traditional models are now switching to new landscapes such as tablets formats, smartphones and even now the emerging holographic smartphones. 3. The death of DVD, Blue Rays and so forth tangible entertainment has come to its end, but rather mobile entertainment is on the rise and in demand, television stations ask themselves this question, we need to begin creating our content and movies just the way HBO and Netflix has done and even more so looking at other models like China, India, Israel and even Singapore. Will it work?
  • 6. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 5 The latest new Holographic Smart Phones (Above and Below) demonstration.
  • 7. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 6 Generation Y or Millennials– Who are they? Many say Generation Y are a nuisance and spices that should have been tamed, or should they? Many needs to be corrected by the right politics on how population control and market size do matter that eventually contributes to economic dynamics such increase of wealth distribution and investments. Generation Y or Millennials are those born between 1978 – 1987, and it is said they are never an easy generation to culturally managed because it is believe that they possessed self-centered, confident, growing up in a diverse school, work and play environment, very well connected and networked, technically information savvy, very enthusiastic and achievement oriented and said to be one of the high educated generation. According to statistics, Millennials are raised by two income families with parents usually at work over 90% of the time. Although communication is a challenge, Millennials develop stronger relationships with their parents, with the support of technology and the convenient methods it is made possible to keep in contact. Parents from wealthy background and as well as those with the sense of responsibility focus every moment of their child’s lives and having unprecedented and well-structured supervision on education and activities.
  • 8. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 7 Parents had their schedules extend to educational and physical activities and the need for various and challenges. Millennials are encouraged by their families that “You can do and make it” syndrome and parents expectations of them is they do not get left behind and they can make it. On the regular basis, the children often get rewards and praise based on merits or best efforts. They were taught that they should be taken seriously and be heard. Millennial do not believe in paying their dues, hard work is not their culture or policy, they feel that they deserve to be heard and get it. Accomplishment drives them on their own and they love to express their creativity and a strong desire for using their methods and quick to go online for resources and even ask their friends and associates for assistance. However, there is a high concern for the millennials, will shortcuts take them far in life? Since there is no sense of morals or rule of law and everything goes mentality. Although they are learning oriented, their aim and goal in life is self-centered.
  • 9. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 8 This is an advantage for marketing networks given the devil’s advocate which I will later explain in this research. Millennials love to share and collaborate in rewards, love to be coach and mentored online and continuously to look for access to any openings and prefer to complete any tasks or adventure on their own for the benefit of the self-esteem. Moreover, Millennials are very curious and asking and seeking answers is their forte, so teachers and adults must be prepared to give answers and chances to make mistakes. This is also an added value for TV networks to engage the Millennials by recreating engagement online, offline and real time experience. By beyond 2016 and further, Millennials can have more spending power then any other age group in history. Another additional benefit is crafting loyalty with Millennials when engaged with all the information that is needed and relevant to them they will be diligent and loyal and they feel it is important and they are also very accustom to new ideas, challenges, and learning.
  • 10. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 9 Lastly, the challenges of Millennials is they tend to change regularly over their personal appetites in their life’s achievement, they will not follow or provide loyal blindly, the company and or even entertainment needs to be socially responsible especially when issues on corporate social responsibility is one of the top in their list, if they know that you care about CSR they will remain loyal, and Millennials have not concerns about long term careers and their savings.
  • 11. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 10 References 1. 15 Economic facts about Millennials, Publish by the White House – The Council of Economic Advisors, October 2014. (https://www.whitehouse.gov/sites/default/files/docs/millennials_report.pdf) 2. www.whymillennialsmatter.com 3. The Next America: Boomers, Millennials and the Looming Generational Slowdown by Paul Taylor and PEW Research Center, ISBN: 978-1610393508 – March 4th 2014 4. Marketing to Millennials: Reach the Largest and Most Influential Generation of Consumers Ever by Jeff Fromm and Christie Garton, ISBN 978-0814433225 – July 2nd, 2013. 5. The Millennials, Connecting to America’s Largest Generation by Thom S. Rainer and Jess Rainer. ISBN 978-1433670039 – January 1st 2011 6. Affluent Insights 2016 Summary Report – Asian Affluent Travel Report Generation AAA by www.affluential.com and agility research and strategy.
  • 12. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 11 The TV and Radio Industry Case Study Now that we learn about Millennials and their behaviors and forward challenges, we will now focus in this chapter about how television and radio industry adapt to the challenges and reach out to the new generation, how it is outreach or evangelized in real time? Many Television stations around the globe are now realizing the biggiest shift in all history and it is still shaking. We now see the moving of industrial & knowledge age into conceptual age. The media development in theoretical into the digital age has two phases – Phases of communication and Convergence Communication has four steps, they are Orality in verbal approach, Manuscripts which produce for production to product, Print for newspapers and digital and electronic which full design automated for digital audience. As for the digital age coming from Analog to Digital – it follows through from Image, Audio, Video, Information and Life. As Marshall McLuhan (1911-1980) said The Medium is the Message.” Which is my point I am going to illustrate the next move for the Industry is now using new methods to evangelize loyalty with Millennial Market.
  • 13. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 12 Today’s world with the millennials they are thriving on all forms of mobile devices that are neat and convenient to them. As the above illustrate how times have change and how generation after generation had decide what is in and out. The case study we now focus is on the television networks on how they have evolve and how and the kinds of approach to take on the new challenges.
  • 14. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 13 We will Illustrate present status of CNN and BBC new online According to statistics based on Media Brand Values 2011 Globally QX, The European Opinion Leaders survey 2011 and 2007 BBC .com there are ten attributes the audience shares their insights: Trust in the reputation of BBC is built over many years and BBC.com is define as more trustworthy then any other websites. Out-Reach, BBC.com evangelizes over 15 million in just Europe alone excluding the United Kingdom. It also has the highest monthly ratings of European Opinion Leader audience than any other international and business news websites. Profile, In Asia Pacific – BBC.com has even more impressive ratings and reach then any competing media sites across keys markets such as opinion leader, top income earner, e commerce consumer, The policy maker, Buisness Travelers and Busy executives. Growth, BBC.com has witness incremental growth highest year on year of potential users comparing to any international news and business website and it insists to maintain it is position of highest monthly reach. Global, in comscore report, 75% of CNN online audience is in the United States of America, whereas BBC.com global distribution is as follows: Asia Pacific – 21% Middle East – 10% Europe – 26% US – 39% BBC.com is also the most STIMULATING brand for global news by Comscore reports in 2011 & 2012 Global. Todate, in 2016 – BBC.com is the fastest growing news website content in the United States with a growth of 38% month by month in the year 2010 to 2011. It is the most rapid growth among its competitiors (CNN, Foxnews, MSNBC, CNBC, Bloomberg and BBCAmerica). When it comes to loyalty, 74% of BBC users do not use another news website.
  • 15. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 14 Engagement, BBC.com Western visitors spend at least an average of 12.5 minutes per site visit, which is 69% greater then the length of time spend on CNN website by its visitors. Buisness Leaders, according to the EMS + CEMS Europe 2012 confirms BBC.com users are influential business leaders.
  • 16. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 15 Above is the comprise between other news networks and BBC.
  • 17. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 16 Above is the diagram statistics of the average age of viewership of the age of 15 years and above. Over 15 million users visit the BBC.com
  • 18. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 17 The BBC.com witness the Year on Year Growth from 2011 to 2012 and is still is the highest reach for the international audience. (report by comScore) The above diagrams show the market share between CNN and BBC.com websites faces a ferocious condition’s over the millennial markets. CNN is still struggling to reach out to
  • 19. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 18 the millennials internationally compared with BBC.com, and why? The answer is simple it’s about relevance and content according to comScore report. Is the content stimulating? According to the report based by Media Brand Values 2011, BBC.com has been voted and seen as the most exciting brand and appeal in global news by Millennials.
  • 20. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 19
  • 21. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 20 References 1. BBC Advertising 2014 report by British Broadcasting Corporation 2. Media Brand Values 2011 report, Globally Excluding UK against weekly users of websites. 3. BBC.com – Transferring Trusts Summer 2010 4. EMS + CEMS Europe 2012 report 5. European Opinion Leaders Survey 2011 & 2007, BBC.com 6. BBC PAX Report Quarter 1 – Quarter 4 2011, Pax 10 markets excluding Tokyo. 7. ComScore report January 2011 & January 2012 Globally excluding United Kingdom. 8. ComScore report April 2012 based on CNN.com and BBC.com website algorithm.
  • 22. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 21 In this chapter, I will update the following issues and the address of how and what must be done to cultivate the present generation and the next. The question raise by the industry are as follows which will cover in the following moments:  What are the Media Industry Shifts? Why, When and Where Millennials Choosing Media Platforms? The Media Industry Shifts is constantly changing and it cannot afford not to be forward thinking and moving. For example, Fox Sports, has recently presented a new method on how Millennials would stay loyal and buy in stake holding viewership, how did they archive it? Today information technologies and services are moving with the telecommunications and broadcasting networks convergence also known as 360-degree provision.
  • 23. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 22 Let’s move on to the example of Fox Sports Channel App: In this study of the above, the target group is 18 to 35 years, Those in college football and basketball. The purpose is to encourage viewers to adopt Fox Sports Go App. According to the data collected by Fox Sports, the following questions were asked: How often do you watch sports? 82% says very often and Quite Often, and 18% says Sometimes and Rarely. Are you aware that there’s an Fox Sports App available that you can access? 24% means that completely Unaware and 48% says that are Generally Unaware.
  • 24. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 23 So how Fox Sports is going to reach out to the audience? How can they keep them engage as well is the advertiser getting their worthwhile investment? To do so, the first thing that Fox Sport’s team had to respond to important research they offer to the advertiser’s the following: Sponsorship Advertising will provide key features –  Still Image advertising shown first on commercial break  Show features such as streaming such as streaming games, highlights and updates.  Ensure all foreseeable application is available on laptops, mobile, desktop and newest holographic cell phone. Why such features? Millennials attention span is short and they are kept captivated by entertainment in high octane. Millennials can only have kept captivated only if there is a constant action or unusual or out of the ordinary from 12secs to 2 mins and if the content is captivating, it could command as long as 60 mins.
  • 25. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 24 Secondly, The Script for In-Games Broadcast. Announcer: “Join us for all the excitement with the Fox Group app. Never miss a moment of the game by streaming it to your mobile device with Fox Sports Go.” “On the go, but don’t want to miss a moment of the game? Download the Fox Sports Go app today and take the game with you everywhere you go.” “Now we’ll show you some Next Gen Stats, brought to you by Fox Sport Go. Watch games on Fox networks anytime, anywhere.” In-Game Broadcast Promotions has a wide reach of 82% which watches the game and with 10-15 second spot by commentators before/after commercial breaks or during non- commercials timeouts. The main strategy is posting two types of format – The first format is TV achors interact with applictions in a quick 15-20 second spot during timeouts that do go to commercial or back from commercial early. The second-Hand Presentation is about having personalities talking about the app in the background of a Fox Sports Go Graphic. This way the above both presentations are kept captivating and exciting and keeping the viewers on the toes and feeling weary.
  • 26. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 25 The next strategy for Fox Sports Go App is Website Advertising. Instead of hiding the link under the watch tab, make it its tab/link to the popup window. This is important key feature so that it provides convenient access and easy to use and see for the millennials. It also provides a wow factor according to Fox Executives almost over 85% seek such services and expectations – what is the NEXT thing! Or WOW factor.
  • 27. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 26 Also, Fox Sport Go App had to expand additional promotions on social media. Why Social Media? Why the need to engage them on social? There are three good reasons to this: 1. According to the reports by Starhub SmarTam August 2015, 800,000 women ages from 18 – 35 watch KBS World HD, VV Drama, CTI TV, TVBJ, TVB8, TVBS Asia, E! Entertainment, HITS, FOX and Lifetime Channel on mobile app and laptop daily in Singapore. 2. 700,000 watch Korean content according to (Starhub SmarTam Sept 2015) report, City, VV Drama, KBS World and One daily in Singapore. 3. Sports Market Savvy, according to (Starhub SmarTam August 2015) – Over 648,000 viewers on Super Sports 1,2,3,4 and Super Sports Arena Daily. This information based on the Singapore markets demonstrates how dynamic the Millennials react on how information is entertain verses from the conventional television. McDonalds Corporation, Mr. Padmanabhan Rangappa (Paddy) Vice President, APMEA for Brand Development (2014-2015) All advertisements must built in for publicity for television and mobile application must have three elements:  An Emotional Human Revelation  Relevant to the Category  Leverage to Build and enhance the Brand This is why McDonalds Corporation believe strongly in engagement with their customers with social media platforms such as what Fox Sports Go App.
  • 28. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 27 Here are statistics that the Millennials membership with Fox Sports App on social media platforms: Social Media: Facebook: Fox Sport Go and Fox Sports Digital combined – 100,000 Instagram – 32,681 followers Twitter – 98,400 to 1.75 million followers
  • 29. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 28 So here are the findings we had learn from both Fox, Starhub and BBC 1. Millennials want easy access and all available resources of all sorts of platforms for entertainment and information. 2. Millennials want the next wow factor, impressed, and forward, they are very technology savvy and very knowledgeable, they want be challenged and outsmart. 3. Millennials are loyal only once their trust is earned through social responsibility on the part of the content provider.
  • 30. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 29 References  Fox Sports Go 2016 Advertising Guide by Patrick Lueders, Kilian Hunter, Tanner Hoskin, Achea Compton and Sunvir Chopra  Starhub Samrtam August & September 2015 report by Starhub Editorial  Fox Sports Go and Digital Facebook report courtesy of Facebook 2016  Fox Sports Go and Digital Instagram report courtesy by Instagram 2016  Fox Sports Go and Digital Twitter report courtesy by Twitter 2016  McDonalds Corporation, Mr. Padmanabhan Rangappa (Paddy) Vice President, APMEA for Brand Development (2014-2015), A face to face interview on 28th November 2016.
  • 31. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 30 Finally, in this last chapter, we will discuss the following questions:  How and What are the factors and causes? To Answer these final questions, here is the update report on the How and Factors and Causes of such changes: The question is what is the drive and how and factors that consumers prefer to relay on content on Social Media and New Media platforms using smart phones and applications? According to findings here are as follows based on “The Media Insight Project” by Associated Press, NORC at the University of Chicago and American Press Institute a book published entitled: A New Understanding: What Makes People Trust and Relay on News, April 2016 Edition. To understand this, we must first understand what today’s consumers perceive Trust. Below is the diagram of what consumer perceive the following: Source: A New Understanding: What Makes People Trust and Relay on News, April 2016 The previous diagram that is displayed tell us that in the findings that trust and reliability in a news product is broken down into various factors that publishers identify: Column1 Adults who say accuracy is important reason they trust a new source 85% Adults who say having the latest details is a critical reason they trust a news source 76% Adults who value news reporting that concise and to the point 72% Digital news consumers who believe it is vital ads do not interfere 63% Political News consumers highly value experts and data in reporting 79% Lifestyle news consumers who say it's important their source is entertaining 53% Facebook new consumers with a lot of trust in the news they see there 12%
  • 32. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 31 Consumers consider a publisher competent and worthy of trust vary depending on the topic and study of finds. For example, how much the consumer values news about politics, weather report, in depth report on politics for others the ease of use is of a higher value and others being entertain is important. The value of Trust in this study will show why is also important to the content creator. Publisher’s must understands that it’s not only about journalistic aspiration, it is also business imperative. Customers who placed higher premium on trust related products are more engaged with news and more likely to pay for it, such as install new apps, or share and promote news with family and friends. The following findings in the diagram demonstrate the following points:  Accuracy has a co-relationship with trust, eighty five percent of Americans say that it is very important or extremely important that news organizations must get the facts right higher than any other principal.  The second value sought after is timeliness, according to the report three quarters of the adults (76% percent) it is important that any news report must be up to date with latest news and information.  The third value sought after is clarity, 72% percent of the findings said it is very important or important that the report is concise and gets to the point.  The forth, Online New Media issues, according to studies it points out three specific points and they are 1. Ads must not interfere with News voted by 63% of the consumers, 2. 63% percent of the consumers say that it is important that the Website or app loads runs fast, Thirdly - 3. All content works well on multiple mobile platforms such as mobile phones voted by 60% percent of the consumer.  1 in 3 voted that it is important for digital resources allow people to comment on news.  The latest discoveries in this finding in 2016, is also reasons why people trust and rely on a news source is because it varies on the topic and relevance, example – people say that expert opinion and data are important reason being is because it is to source for news on domestic data than lifestyle news which is 75 percent versus 48 percent.  Millennial Consumers want their source to be concise and get to the point for domestic politics (80 percent vote), for sports (61 percent vote).
  • 33. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 32  Followers of traffic and weather voted 72 percent that it is very important such content presents well on mobile applications than consumers of domestic news which 55 percent of the votes.  Millennials who use social media heavily usually are highly skeptical of news encounter on networks. 12 percent who obtain news from Facebook for example say they trust a lot or a great deal of it. And 23% on the high end say they have great trust in news they obtain from LinkedIn.
  • 34. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 33  What are the Major content providers doing? What are the solutions, steps and measures taken by players such as HBO, CNN, Disney, Singtel, Starhub or Toggle doing? What does it mean for players for even telecom companies buying up content providers? Today Major players are providing new products that will engage with the millennials such as HBO, CNN, Media Corp and Starhub in three points: 1. New platforms open new doors, and new ways of engagement such as mobile apps, and loyalty program re-created that could not be done in the past and now it could such as advertising and promotions of a new season of a TV series by MediaCorp, they are able to organized live meet and greet with actors and also on the app it has exclusive how the episode is made and character follow-up which cannot be done on air time.
  • 35. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 34 2. Television Stations are recreating their own platforms such as TOGGLE Singapore very own New Media Station that creates content and organizes its own live events and community engagement. Examples display below.
  • 36. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 35
  • 37. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 36 3. Even radio stations has gone digital to engage with consumers 24/7. Not just radio, but also Radio TV BLOGS with fun filled interviews with celebrities and even the man on the street. Branding also becomes a strong element for radio and television as it recreates a new world for audiences to relate and coverage into participation such marathons, games and even a call for comments and surveys in exchange and enhance loyalty program call ME Club Online.
  • 38. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 37 Finally, what is happening today? What is the trends for Television and Radio Stations? What is really next for them and the convergence with Telecommunications companies meager with content providers? What is the benefit? According to the recent global reports, (from Korea) Telecom firms buying content providers– Korea Herald, Saturday August 12, 2006 by Hwang Si-young reported Hanarotelecom Inc. is purchasing content providers hahTV service which has 30,000 subscribers’. Hana TV offers High Definition Video Content along with broadband and telephony services that attracts thousands of subscribers in just 20 days after the launch. It boasts over 22,000 video on demand content offered by over fifth content providers at home or abroad. Content is king says Korea Telecom spokesman, KT with wireless affiliate KTF Co has bought 51 percent share with the largest film making company Sidus FNH Corp for USD$29 Million in September 2005, and the KT is also the largest shareholder of satellite Skylife. According to Experts, trends of convergence services combining broadcasting and telecom will continue to capture market share and loyalty for the long term. In a news report on Financial Times in November 29, 2014 by Daniel Thomas, Henry Mance and David Crow entitled: Telecoms groups seek share of TV Limelight: Producing content has become a new battleground among the groups that provide internet connections. Even in Europe for example, in the report FT said Vodafone’s is offering TV to UK customers which means they will aquire content providers as the most common sense to do financially, according to Michael Goodman a digital media expert at Strategy Analytics has this to say: Content is the way for telecommunications company to compete with the others in the market and with new players such as Netflix and Youtube. So we need three strong pillars – Content, Distribution and Device. And when content internet providers buy content they have a control of at least two out of three.
  • 39. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 38 Today in the United States, Comcast has bought over NBC Universal in 2009, which creates both a marriage of content creation and distribution in one facility. May 2009, AT&T paid $48.5 billion for DirecTV because it has holding rights for Sunday NFL games for Television and mobile devices. But why the convergence and what does this mean for both the service provider and consumer? 1. Service providers are seeking to enlarge their market share or they will see themselves irrelevant which resulting closure and losing to new players, so to stay ahead and control, it seeks to buy their competition and embrace for control and profit. 2. For the consumer, it will see better performance on their applications and may or may not result less expensive service fees for data. But they will have a wider range of content and more flexible options. 3. Service providers and Consumers will enable to converge interests anytime, anywhere with advance mobile entertainment in real time 24/7.
  • 40. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 39 Recommendations: Finally, to conclude, Rupert Murdoch has this to say quote in Wired, July 2006 “To Find Something comparable, you have to go back 500 years to the printing press, the birth of mass media. Technology is shifting power away from the editors, the publishers, the establishment, the media elite. Now it’s the people who are taking control”. Here are three recommendations for the industry who wants to expand in content provision or content distribution: 1. Create a 360-degree solution which will enabled for the consumer to access easily and obtain easily 24/7. Application must be cool, never before done and wow factor. Never Stay complacent, always upgrade one or twice year for your formats. 2. Industry must always embrace change, and love change, you must create and invest along with the collaboration with lifestyle and other stakeholders that would share the same vision and interests in your network as survival and their financial investment is always key. 3. Millennials and the future generation are your customers and they want to be treated as a very important customer and wants to be engage to gain their loyalty and trust.
  • 41. Stienberg Tan Geok Yong – IC S7234046I MED110/2016 TMC Essay – Assignment PAGE 40 References: 1. Financial Times, November 29, 2014 Telecoms groups seek share of TV Limelight by David Thomas, Henry Mance and David Crow. 2. Telecom firms buying content providers, Korea Herald, Saturday August 12, 2006 by Hwang Si-young 3. “The Media Insight Project” by Associated Press, NORC at the University of Chicago and American Press Institute a book published entitled: A New Understanding: What Makes People Trust and Relay on News, April 2016 Edition. 4. http://www.mediacorp.sg/en - MediaCorp advertising information for Toggle and Radio Online 5. Rupert Murdoch quote by Wired, July 2006