Dec 22, 2010
With our core business & expertise in media consulting, at every year-end people keep asking as to which way the media is heading to in the year ahead. At the end of the year 2010, the very same curiosity has got even more relevance with the kind of media expose that the country has seen, both internally with Radia tapes and globally with WikiLeaks. Will it change the shape of things in media? And with TRACK2MEDIA Consulting launching its first news project in the form of e newspaper on real estate sector, Track2Realty, it is all the more necessary for us to release a fact-sheet on the media roadmap that we find shaping up in the year 2011.
Different people have different reasons to be curious-journalist friends want to know whether the entry of more players will just add up to the number of jobs; or the increasing competition will have some impact on the pay packets as well. The clients in the corporate world are always curious to understand the behavioral dilemma with the necessary evil called media. But most importantly the new players who are eager to explore in the media business want to understand as to what makes a media project viable.
Well, TRACK2MEDIA Consulting as a communication management group has lost a couple of upcoming media projects in the year 2010 because we have been upfront in telling the clients that their approach to replicate the model, both in content & revenue, of existing biggies is fraught with dangers. Every wannabe in the media business, unfortunately, tries to replicate the existing news project, and in the process turns out to be the poor Xerox version of the existing players. When the global management consulting company McKinsey forecasted a few years back that India will soon see around 500 TV channels uplinked, it had probably no idea as to how the business of news & entertainment will see a horizontal growth than vertical one.
Some of the regional channels competing in a cluttered market are a testimony of the fact that it is not just niche market that is a key to success. Most of them have failed to evolve a serious game plan and hence unable to create a community around them. This failure has also brought a sea change compromise in the standards and ethics of journalism. Jobs are offered nowadays not just on the journalistic merit, but the ability to raise revenue from the region that is on offer. Still, most of the thinktanks of these media group are clueless as to where have the audience and revenue gone.
Nine out of 10 new media projects in the year 2010 have either failed flat or are struggling to make a break even. Indian media market has already seen dot com bubble burst, the TV channels closing down and even some big ticket print media projects failing to make a mark. Some of these projects have failed to get noticed despite of deep pockets of the promoters. On the contrary, there are other media projects, though few and far between, which are doing well despite of working in a low-cost model. This raises a question mark over the business model, brand differentiator and TG loyalty of the project.
All the successful media ventures may be devising their old success stories, but there seem to be a common pattern of almost all the failed ventures. That is their attempt to replicate the model of the existing successful ventures. After closely examining the evolving media market in the country, we always advise the clients to write their success stories, instead of replicating anybody. This goes true for our own venture Track2Realty as well, which has been conceptualized as a market differentiator in the real estate segment.
It is not that there is any dearth of media ventures in a lucrative sector like the real estate. But where Track2Realty stands out as a market differentiator is the fact that we are neither competing with the marketing supplements of the mainline newspapers, nor are we providing a B2B platform to the industry. For us real estate is newsworthy subject that has been a virgin territory. And we are here to track the real concerns of all the stake holders-realty companies, investors, consultants and the end-users.
The question that many people ask is that whether niche segment is the new potential zone to emerge. With a certain amount of conviction I keep telling the media wannabes that the days of broadcast format is over. Unless one has a few hundred crores with a long time span to get into competitive zone with the large media houses, there is no point to even think of a venture with broadcast format. Providing every bit of news for everybody is something that has been monopolized by the large media institutions. As a consultant I keep telling everybody that even if you have deep pockets, it is always better to channelize that resource on a road that has been less travelled by.
It is our firm belief that while the broadcast format may not work for the new players, narrowcast format brings in more synergy, room for creativity & experiment and connects instantly with the focused target group. The next wave in media is slated to be with the narrowcast format, where one may not be offering everything to everybody, but an exclusive offer for a niche audience connects much better with the desired target group. One may not target million of audience who will surf your news platform once in a while, but an exclusive offer to even thousands of audience will do if your offer is worth visiting twice or thrice a day.
News and for that matter any form of media is also about creating a community around your media vehicle. Perhaps Facebook is the best example, and also an answer as to why people in general spend more time on Facebook than a professional networking platform like the LinkedIn. Both Facebook and LinkedIn are available on the Internet, accessible to everybody worldwide. But while LinkedIn is conceptualized on a broadcast format where you can network globally with anybody on a professional level, you may not end up working together on a given project even if you need services in that given geographical location. This is because this professional networking platform may not bring in like minded professionals on the table.
On the contrary, with Facebook one may not be bothered about millions of users, but in a narrowcast mode one is closely networked, most often with same likes and preferences, with the friends’ list. The medium offers even more focused narrowcasting within the narrowcast in the form of creating a group. Our study on the business model, audience psychograph and emerging pattern clearly suggests that the future belong to such narrowcast format in media.
Among the three popular modes of media-Print, TV and Internet, the power of the word of mouse is tremendous; but has not been tapped fully because there is a credibility factor that is missing on the net in the absence of any regulation. It is a free for all medium. Columbia law professor in his recent book “The Master Switch” argues that Internet is as powerful as any other communications medium. He expects to see consolidation and government control over the web. That may be a blessing in disguise as most other media-Print, TV, Radio & Movies, have gone through phases of wild growth and experimentation, eventually settling into a pattern of consolidation, control and credibility.
If Print Media today is seen as the most creditable piece of journalism, it is largely due to the edit control mechanism of the medium. In contrast, Television may attract more eyeballs but edit control is relatively less in a Soundbyte driven medium. Internet media entrepreneurs need to adapt to this reality and reinvent their project into a digiprint format. It is not just the US President Barack Obama who contested the elections on the social networking sites, but across the world even the most conservative governments have started realizing the power of the medium.
China has launched a new search engine of its own to make foray into its 420 million strong net users’ market. Known as Goso.cn, China’s search engine has been aimed at countering the negative reports of the country on rival Google. It has been launched by the country’s largest newspaper the People’s Daily of the ruling Communist party of China. This shows how several countries view development of the internet as part of their national strategy.
Internet is a medium which enables one with a daily budget of even Rs. 10 to practice journalism and other forms of media activity. Internet has cultivated a public vested in its freedom. But then activism and radical openness of the web has to eventually set an organized pattern for the medium. With a bit of regulation, more serious players opting for the medium and the medium itself not just penetrating deep into the demography but also in the psychograph….the future is definitely calling to the digital media.
Different people have different reasons to be curious-journalist friends want to know whether the entry of more players will just add up to the number of jobs; or the increasing competition will have some impact on the pay packets as well. The clients in the corporate world are always curious to understand the behavioral dilemma with the necessary evil called media. But most importantly the new players who are eager to explore in the media business want to understand as to what makes a media project viable.
Well, TRACK2MEDIA Consulting as a communication management group has lost a couple of upcoming media projects in the year 2010 because we have been upfront in telling the clients that their approach to replicate the model, both in content & revenue, of existing biggies is fraught with dangers. Every wannabe in the media business, unfortunately, tries to replicate the existing news project, and in the process turns out to be the poor Xerox version of the existing players. When the global management consulting company McKinsey forecasted a few years back that India will soon see around 500 TV channels uplinked, it had probably no idea as to how the business of news & entertainment will see a horizontal growth than vertical one.
Some of the regional channels competing in a cluttered market are a testimony of the fact that it is not just niche market that is a key to success. Most of them have failed to evolve a serious game plan and hence unable to create a community around them. This failure has also brought a sea change compromise in the standards and ethics of journalism. Jobs are offered nowadays not just on the journalistic merit, but the ability to raise revenue from the region that is on offer. Still, most of the thinktanks of these media group are clueless as to where have the audience and revenue gone.
Nine out of 10 new media projects in the year 2010 have either failed flat or are struggling to make a break even. Indian media market has already seen dot com bubble burst, the TV channels closing down and even some big ticket print media projects failing to make a mark. Some of these projects have failed to get noticed despite of deep pockets of the promoters. On the contrary, there are other media projects, though few and far between, which are doing well despite of working in a low-cost model. This raises a question mark over the business model, brand differentiator and TG loyalty of the project.
All the successful media ventures may be devising their old success stories, but there seem to be a common pattern of almost all the failed ventures. That is their attempt to replicate the model of the existing successful ventures. After closely examining the evolving media market in the country, we always advise the clients to write their success stories, instead of replicating anybody. This goes true for our own venture Track2Realty as well, which has been conceptualized as a market differentiator in the real estate segment.
It is not that there is any dearth of media ventures in a lucrative sector like the real estate. But where Track2Realty stands out as a market differentiator is the fact that we are neither competing with the marketing supplements of the mainline newspapers, nor are we providing a B2B platform to the industry. For us real estate is newsworthy subject that has been a virgin territory. And we are here to track the real concerns of all the stake holders-realty companies, investors, consultants and the end-users.
The question that many people ask is that whether niche segment is the new potential zone to emerge. With a certain amount of conviction I keep telling the media wannabes that the days of broadcast format is over. Unless one has a few hundred crores with a long time span to get into competitive zone with the large media houses, there is no point to even think of a venture with broadcast format. Providing every bit of news for everybody is something that has been monopolized by the large media institutions. As a consultant I keep telling everybody that even if you have deep pockets, it is always better to channelize that resource on a road that has been less travelled by.
It is our firm belief that while the broadcast format may not work for the new players, narrowcast format brings in more synergy, room for creativity & experiment and connects instantly with the focused target group. The next wave in media is slated to be with the narrowcast format, where one may not be offering everything to everybody, but an exclusive offer for a niche audience connects much better with the desired target group. One may not target million of audience who will surf your news platform once in a while, but an exclusive offer to even thousands of audience will do if your offer is worth visiting twice or thrice a day.
News and for that matter any form of media is also about creating a community around your media vehicle. Perhaps Facebook is the best example, and also an answer as to why people in general spend more time on Facebook than a professional networking platform like the LinkedIn. Both Facebook and LinkedIn are available on the Internet, accessible to everybody worldwide. But while LinkedIn is conceptualized on a broadcast format where you can network globally with anybody on a professional level, you may not end up working together on a given project even if you need services in that given geographical location. This is because this professional networking platform may not bring in like minded professionals on the table.
On the contrary, with Facebook one may not be bothered about millions of users, but in a narrowcast mode one is closely networked, most often with same likes and preferences, with the friends’ list. The medium offers even more focused narrowcasting within the narrowcast in the form of creating a group. Our study on the business model, audience psychograph and emerging pattern clearly suggests that the future belong to such narrowcast format in media.
Among the three popular modes of media-Print, TV and Internet, the power of the word of mouse is tremendous; but has not been tapped fully because there is a credibility factor that is missing on the net in the absence of any regulation. It is a free for all medium. Columbia law professor in his recent book “The Master Switch” argues that Internet is as powerful as any other communications medium. He expects to see consolidation and government control over the web. That may be a blessing in disguise as most other media-Print, TV, Radio & Movies, have gone through phases of wild growth and experimentation, eventually settling into a pattern of consolidation, control and credibility.
If Print Media today is seen as the most creditable piece of journalism, it is largely due to the edit control mechanism of the medium. In contrast, Television may attract more eyeballs but edit control is relatively less in a Soundbyte driven medium. Internet media entrepreneurs need to adapt to this reality and reinvent their project into a digiprint format. It is not just the US President Barack Obama who contested the elections on the social networking sites, but across the world even the most conservative governments have started realizing the power of the medium.
China has launched a new search engine of its own to make foray into its 420 million strong net users’ market. Known as Goso.cn, China’s search engine has been aimed at countering the negative reports of the country on rival Google. It has been launched by the country’s largest newspaper the People’s Daily of the ruling Communist party of China. This shows how several countries view development of the internet as part of their national strategy.
Internet is a medium which enables one with a daily budget of even Rs. 10 to practice journalism and other forms of media activity. Internet has cultivated a public vested in its freedom. But then activism and radical openness of the web has to eventually set an organized pattern for the medium. With a bit of regulation, more serious players opting for the medium and the medium itself not just penetrating deep into the demography but also in the psychograph….the future is definitely calling to the digital media.
2 comments:
Though i do agree that internet will and to a large extent is playing a very significant role as a media for both; editorial and advertising, but ruling out the significance of broadcast media may not be the right vision.
All media tools/ vehicles like print, broadcast and internet; infact even the mobile phones will play a vital role in editorial and advertising, both.
I remember, analysts predicted in early 90's with satellite channels coming up that days of print media is numbered. But with a little innovation and marketing, they are very much part of daily dose of editorial and media planning.
A classic example is RADIO, which lost it charm and wasn't even a poor man's entertainment anymore. But today innovation has made FM a favorite to the listeners and is also back in the media strategy while planning a campaign.
Digital Media has a lot to offer, which is still not in vision of the players. In coming time with wider penetration it will be yes it will see a far better prospects.
But ruling out Broadcast Media is not the right prophecy. The king in media will always be the content and the innovation and who ever will surrender to it, will never perish.
A lot of people called me on the subject. But if you actually read the complete article, you will realise that my point is not that broadcast media will be out of the business. Rather it is about the broadcast format of the media, where your news platform is offering everything to everybody will not be as successful.
What is going to work is a narrowcast format, where media actually builds a community around. You have rightly pointed out about Radio, but that is working well in a narrowcast format only. It is a community building device where I get traffic updates while on the way to work.
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