Skip to main content

Converging Technologies and Diverging Market Trends of Internet/Web and Traditional Media

Part of the Media Business and Innovation book series (MEDIA)

Abstract

The key objective of this study is to analyze and discuss from an analytical and empirical perspective how the phenomenon of media convergence shapes and creates the opportunities for ‘old’ broadcast and new/broadband media network models.

This is the pioneering article that deals with the cross-examination of micro-economic trends of two different production and distribution media platforms: internet and web media (Search engine and Social networking sites) and Traditional media (radio, satellite TV, cable TV, film and printed media industry).

In order to precisely determine the present and prospective market value and competitive performance of new and traditional media corporations, the author examines seven important micro-economic components that play crucial role in establishing the competitive market position of the leading multinational corporations: enterprise value, market capitalization, annual revenue, annual net income, debt to equity ratio, return on assets, return on equity.

The most competitive global corporations that are examined within the segment of internet and web media (Search engine and Social networking sites) include: Google, Amazon, eBay, Facebook, Baidu, Yahoo, LinkedIn Corporation, and Netflix. On the other hand the representatives of the largest traditional media market corporations encompass: Comcast Corporation, The Walt Disney Company, News Corporation, Time Warner, Time Warner Cable, and Viacom. The analysis clearly shows that new media (internet and web) companies are definite winners in four out of seven micro-economic categories.

In summary, the author argues that most successful global new media corporations maintain their competitiveness over old media corporations applying the following business models: tipping point strategy, Crowd sourcing strategy, Mesh Companies Strategy, Micropayment and, nicheization of media market, User-generated content, Content re-purposing, cross-media content and global convergence, Experience Economy.

Keywords

  • Business Model
  • Global Convergence
  • Social Networking Site
  • Media Content
  • Brand Equity

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

This is a preview of subscription content, access via your institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1007/978-3-642-54487-3_5
  • Chapter length: 25 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   129.00
Price excludes VAT (USA)
  • ISBN: 978-3-642-54487-3
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book
USD   169.99
Price excludes VAT (USA)
Hardcover Book
USD   169.99
Price excludes VAT (USA)

References

  • Ahonen, T. T. (2010). End of cash? First blog in a series examining the pending doom of minted coins and printed banknotes [Web log post, October 11, 2010]. Retrieved December 20, 2010, from http://communitiesdominate.blogs.com/brands/2010/10/end-of-cash-first-blog-in-a-seriesexamining-the-pending-doom-of-minted-coins-and-printed-banknotes.html

  • Allison, A. W., III, DeSonne, M. L., Rutenbeck, J., & Yadon, R. E. (2002). Tech terms (2nd ed.). Washington, DC: National Association of Broadcasters.

    Google Scholar 

  • Ames, M., & Naaman, M. (2007). Why we tag: Motivations for annotation in mobile and online media. Proceedings of the ACM SIGCHI Conference on Human Factors in Computing Systems. San Jose, CA.

    Google Scholar 

  • Anderson, C. (2006). The Long Tail: Why the Future of Business is Selling Less of More. Hyperion

    Google Scholar 

  • Appelgren, E. (2004). Convergence and divergence in media: Different perspectives. 8th ICCC International Conference on Electronic Publishing Brasilia (pp. 237–248). DF, Brazil, June.

    Google Scholar 

  • Bakos, Y., & Brynjolfsson, E. (2000). Bundling and competition on the internet: Aggregation strategies for information goods. Marketing Science, 19(1), 63–82.

    CrossRef  Google Scholar 

  • Bruns, A. (2007). Produsage: Towards a broader framework for user-led content creation. Proceedings of the 6th ACM SIGCHI Conference on Creativity & Cognition, Washington, DC, USA—June 13–15, 2007, (consulted April 23, 2007) http://snurb.info/node/720

  • Cattuto, C., Loreto, V., & Pietronero, L. (2007). Semiotic dynamics and collaborative tagging. Proceedings of the National Academy of Sciences, 104(5), 1461.

    CrossRef  Google Scholar 

  • Chevalier, J. A., & Mayzlin, D. (2006). The effect of word of mouth on sales: Online book reviews. Journal of Marketing Research, 43(3), 345–354.

    CrossRef  Google Scholar 

  • Christodoulides, G., Jevons, C., & Bonhomme, J. (2012). Memo to marketers: Quantitative evidence for change how user-generated content really affects brands. Journal of Advertising Research, 52, 53–64.

    CrossRef  Google Scholar 

  • Clemons, E. K. (2009). Business models for monetizing internet applications and web sites: Experience, theory, and predictions. Journal of Management Information Systems, 26(2), 15–41.

    CrossRef  Google Scholar 

  • Cole, J. (2004). Multitasking bei der Internetnutzung. In A. Zerdick, A. Picot, K. Schrape, J. C. Burgelman, R. Silverstone, V. Feldmann, D. K. Heger, & C. Wolff (Eds.), E-merging media. Kommunikation und Medienwirtschaft der Zukunft (pp. 82–83). Heidelberg: Springer.

    Google Scholar 

  • Daugherty, T., Eastin, M. S., & Bright, L. (2008). Exploring consumer motivations for creating user-generated content. Journal of Interactive Advertising, 8(2 Spring), 1–24.

    Google Scholar 

  • Dennis, E. E. (2003). Prospects for a big idea—Is there a future for convergence? International Journal on Media Management, 5(1), 7–11.

    CrossRef  Google Scholar 

  • Deuze, M. (2007). Convergence culture in the creative industries. International Journal of Cultural Studies, 10(2), 243–263.

    CrossRef  Google Scholar 

  • Diehl, S., & Karmatin, M. (2013). Media and convergence management. Berlin: Springer-Verlag.

    CrossRef  Google Scholar 

  • Dijck, J. (2011). You as in “You Tube”: Defining user agency in social media platforms. In Z. Vukanovic & P. Faustino (Eds.), Managing media economy, media content and technology in the age of digital convergence. Lisbon: Media XXI.

    Google Scholar 

  • Dokoupil, T., & Wu, A. (2010). Take this blog and shove it! Newsweek, 156(7) 42. Retrieved August 16, 2010.

    Google Scholar 

  • Doyle, G. (2002). Understanding media economics. London: SAGE Publications.

    CrossRef  Google Scholar 

  • Edwards, T. (2009). User-generated content. MultiLingual, 20(3), 18–19. Number 103.

    Google Scholar 

  • Enlund N., & Lindskog T. (2000). Nya redaktionella processer vid flerkanalspublicering. På väg mot medievärlden 2020. In H. Hvitfelt, & G. Nygren (Eds.), Sweden: Studentlitteratur.

    Google Scholar 

  • Foremski, T. (2009, February 17). Some ideas on reinventing newspapers. Silicon Valley Watcher. Retrieved November 20, 2009, from http://www.siliconvalleywatcher.com/mt/archives/2009/02/some_ideas_on_r.php

  • Fu, W. W., & Wildman, S. (2008). Economic research on asian media markets and industries: A critical reflection. Asian Journal of Communication, 18(2), 92–101.

    CrossRef  Google Scholar 

  • Gansky, L. (2010). The mesh: Why the future of business is sharing. New York: Penguin Group.

    Google Scholar 

  • Ghose, A., & Ipeirotis, P. (2009). The econo mining project at NYU: Studying the economic value of user-generated content on the internet. Journal of Revenue and Pricing Management, 8(2/3), 241–246.

    CrossRef  Google Scholar 

  • Gladwell, M. (2002). The tipping point: How little things can make a big difference. New York: Brown & Company.

    Google Scholar 

  • Godes, D., & Mayzlin, D. (2004). Using online conversations to measure word-of-mouth communication. Marketing Research, 23(4), 545–560.

    Google Scholar 

  • Golder, S., & Huberman, B. (2006). Usage patterns of collaborative tagging systems. Journal of Information Science, 32(2), 198–208.

    CrossRef  Google Scholar 

  • Goldhammer, K. (2005). On the myth of convergence. In J. Groebel, E. M. Noam, & V. Feldmann (Eds.), Mobile media. Content and services for wireless communications, Mahwah, NJ: Lawrence Erlbaum Associates.

    Google Scholar 

  • Graybeal, G. M., & Lee Hayes, J. (2011). A modified news micropayment model for newspapers on the social web. The International Journal on Media Management, 13, 129–148.

    CrossRef  Google Scholar 

  • Greenstein, S., & Khanna, T. (1997). What does industry convergence mean? In D. B. Yoffie (Ed.), Competing in the age of digital convergence (pp. 201–226). Boston: Harvard Business School Press.

    Google Scholar 

  • Hoegg, R., Martignoni, R., Meckel, M., & Stanoevska-Slabeva, K. (2006). Overview of business models for web 2.0 communities. From Proceedings of GeNeMe—Gemeinschaften in Neuen Medien, Technische Universität Dresden.

    Google Scholar 

  • Jaring, P., Matinmikko, T., & Abrahamsson, P. (2006). Micropayment business in Finland—Forming the basis for development of micropayment methods and business. In M. Avital & K. Crowston (Eds.), Proceedings of the Helsinki Mobility Roundtable. Sprouts: Working papers on information systems (Vol. 6). Amsterdam: Sprouts Alliance. Retrieved November 1, 2010, from http://sprouts.aisnet.org/6-40

  • Jenkins, H. (2001). Convergence? i diverge. Technology Review, 104(5), 93.

    Google Scholar 

  • Jenkins, H. (2006). Convergence culture. Where old and new media collide. Cambridge: MIT Press.

    Google Scholar 

  • Killebrew, K. C. (2003). Culture, creativity and convergence: Managing journalists in a changing information workplace. International Journal on Media Management, 5, 39–46.

    CrossRef  Google Scholar 

  • Koh, J., Kim, Y., Butler, B., & Bock, G. (2007). Encouraging participation in virtual communities. Communications of the ACM, 50(2), 68–73.

    CrossRef  Google Scholar 

  • Lawson-Borders, G. (2003). Integrating new media and old media: Seven observations of convergence as a strategy for best practices in media organizations. JMM, The International Journal on Media Management, 5(II), 91–99.

    Google Scholar 

  • Lee, W. C. L. (2003, June). Clash of the titans: Impact of convergence and divergence on digital media. Unpublished doctoral thesis, Massachusetts Institute of Technology, Cambridge, MA.

    Google Scholar 

  • Li, X., & Hitt, L. M. (2008). Self-selection and information role of online product reviews. Information Systems Research, 19(4), 456–474.

    CrossRef  Google Scholar 

  • Livingstone, S. (2004). The challenge of changing audiences. European Journal of Communication, 19(1), 75–86.

    CrossRef  Google Scholar 

  • Macnamara, J. (2010a). The 21st century media (R)evolution: Emergent communication practices. New York: Peter Lang.

    Google Scholar 

  • Macnamara, J. (2010b). Remodelling media: The urgent search for new media business models. Media International Australia, 137, 20–35.

    Google Scholar 

  • Manovich, L. (2012). The back of our devices looks better than the front of anyone else’s: On apple and interface design. In P. Snickars & P. Vonderau (Eds.), Moving data: The iPhone and the future of media. New York: Columbia University Press.

    Google Scholar 

  • Marlow, C., Naaman, M., Davis, M. and Boyd, D. (2006). Tagging paper, taxonomy, Flickr. Proceedings of the 17th ACM Conference on Hypertext and Hypermedia. Odense, Denmark.

    Google Scholar 

  • Mings, S. M., & White, P. B. (2000). Profiting from online news: The search for viable business models. In B. Kahn & H. R. Varian (Eds.), Internet publishing and beyond: The economics of digital information and intellectual property (pp. 62–96). Cambridge, MA: MIT Press.

    Google Scholar 

  • Nov, O., & Ye, C. (2010). Why do people tag?: Motivations for photo tagging. Communications of the ACM, 53(7), 128–131.

    CrossRef  Google Scholar 

  • Pavlik, J. (2008). Media in the digital age. New York: Columbia University Press.

    Google Scholar 

  • Peters, I. (2009). Folksonomies. Berlin: De Gruyter Saur.

    CrossRef  Google Scholar 

  • Pine, J., & Gilmore, J. H. (1999). Experience economy: Work is theatre and every business a stage. Boston, MA: Harvard Business School.

    Google Scholar 

  • Qualman, E. (2012). Socialnomics: How social media transforms the way we live and do business. New York: Wiley.

    Google Scholar 

  • Ransbotham, S., Kane, G. C., & Lurie, N. H. (2012). Network characteristics and the value of collaborative user-generated content. Marketing Science, 31(3), 387–405.

    CrossRef  Google Scholar 

  • Ryu, G., & Feick, L. (2007). A penny for your thoughts: Referral rewards programs and referral likelihood. Journal of Marketing, 71, 84–94.

    CrossRef  Google Scholar 

  • Schaedel, U., & Clement, M. (2010). Managing the online crowd: Motivations for engagement in user-generated content. Journal of Media Business Studies, 7(3), 17–36.

    CrossRef  Google Scholar 

  • Smith, T. (2009). The social media revolution. International Journal of Market Research, 51(4), 559–561.

    CrossRef  Google Scholar 

  • Snuderl, K. (2008). Tagging: Can user-generated content improve our services? statistical. Journal of the IAOS, 25, 125–132. IOS Press.

    Google Scholar 

  • Szabo, G., & Huberman, B. A. (2010). Predicting the popularity of online content. Communications of the ACM, 53(8), 80–88.

    CrossRef  Google Scholar 

  • Tam, K. Y., & Ho, S. Y. (2007). A smart card based Internet micropayment infrastructure: Technical development and user adoption. Journal of Organizational Computing and Electronic Commerce, 17, 145–173.

    CrossRef  Google Scholar 

  • Vizjak, A., & Ringlstetter, M. (2003). Media management: Leveraging content for profitable growth. New York: Springer.

    CrossRef  Google Scholar 

  • Wirth, M. O. (2003, July 31). New media strategy: Convergence-based driving forces & challenges. Paper presented at the annual convention of the Association for Education in Journalism and Mass Communication, Kansas City, KS.

    Google Scholar 

  • Zeng, M., & Reinartz, W. (2003). Beyond online search: The road to profitability. California Management Review, 45, 107–130.

    CrossRef  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Zvezdan Vukanovic .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and Permissions

Copyright information

© 2016 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Vukanovic, Z. (2016). Converging Technologies and Diverging Market Trends of Internet/Web and Traditional Media. In: Lugmayr, A., Dal Zotto, C. (eds) Media Convergence Handbook - Vol. 2. Media Business and Innovation. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-54487-3_5

Download citation