New business models for the new media world

Abstract

Purpose

The authors perform market trend analysis and to examine the clash between new and traditional media and explore future industry competitive scenarios.

Design/methodology/approach

IBM conducted a comprehensive study that included interviews with leaders of media companies and an in‐depth analysis of the factors that are shaping the industry outlook. IBM conducted in‐person interviews with more than 75 senior media executives, industry analysts, economists and technology visionaries and also worked with the Economist Intelligence Unit to survey another 125 industry executives.

Findings

IBM sees four primary business models emerging – traditional media, walled communities, content hyper‐syndication and new platform aggregation. The research also found evidence of another developing conflict that it calls the media divide. It could pit partner against partner in a struggle for growth.

Practical implications

IBM proposes seven industry‐specific recommendations for incumbent media companies as they face the immediate threat from new entrants and eventual collisions with traditional partners: Deliver experiences, not just content. Leverage virtual worlds. Innovate business models. Invest in interactive, measurable advertising services and platforms. Redefine partnerships, while mitigating fallout. Shift investment from traditional business to new models. Create a flexible business design.

Originality/value

The article offers a combination of market evolution analysis, future market scenarios and recommendations for gaining first mover advantage.

Citation

Berman, S.J., Abraham, S., Battino, B., Shipnuck, L. and Neus, A. (2007), "New business models for the new media world", Strategy & Leadership, Vol. 35 No. 4, pp. 23-30. https://doi.org/10.1108/10878570710761354