Digital and Mainstream Media Convergence

I was thinking it is probably too late to write about the convergence of mainstream and digital media in any way other than from a historical perspective. That is how fast the process is unfolding. Digital media has forever changed the way we look, listen and learn. How long will it be until the term Mainstream Media means digital media?

Recently I made some comments about the convergence of media in Australia.

In the short amount of time between the invention of the World Wide Web in 1990 and today, traditional, or mainstream media, has been turned upside down. Here are just a few examples.

• You can watch television on the Internet and you can access the Internet on your television.



• Record labels watch recording artists defect to the Internet to sell their music directly to fans, and fans listen to their favorite music on their MP3 players.



• Threatened by the alarming increase in digital music delivery devices, broadcast radio stations are busy re-engineering so they can stream their shows and music to the Internet and MP3 players.



• RSS news feeds and blogs have replaced newspapers in millions of homes around the world and now you can watch your television news show in your browser any time of the day or night.

Traditional media delivery mechanisms, such as the radio, newspaper, television and theatre screen, have been thoroughly changed by the digital revolution. The change is so great, in fact, that many media experts are predicting the demise of the traditional media, or at least the demise of their current format.

For example, digital cameras and film have transformed the cinema and never before have independent film producers been such a large part of the mainstream. And it is exactly the fact that Indies are becoming mainstream that illustrates my point that the convergence is not just beginning, it is nearly complete.

It is only a matter of time, a very short time, until a wireless Internet-connected device, most likely no bigger than an iPod™, will deliver all of the new mainstream media right to the palm of your hand.

The Australian Media Landscape

There is always something in the news about the Australian media landscape. This is a collection of Press, Magazine, Television, Internet, Radio and Outdoor companies. The Australian Government established the Australian Communications and Media Authority whose main roles are to regulate broadcasting, radiocommunications and telecommunications, and to represent Australian interests in international communications matters.

I have attended a few meetings with the Australian Media Federation. The Media Federation of Australia (MFA) was formed in 1997, their charter is to support advertising agencies that specialise in providing services including media research, strategic planning, media negotiation and placement.

Television (Terrestrial & Satellite)

• Free TV Australia
  
• ABC
  
• Channel 7
  
• Channel 9
  
• Channel 10
  
• Win TV
  
• Prime
  
• SBS
  
• Foxtel
  
• Austar
  
• Selectv
  

Press

• Sydney Morning Herald
  
• The Australian
  
• Daily Telegraph
  
• Age
  
• Financial Review
  
• Canberra Times
  
• News.com.au
  
• Herald-Sun
  
• Courier-Mail
  
• Advertiser
  
• Northern Territory News
  
• Mercury
  
• West Australia
  
• Sunday Times (WA)
  

Magazines

• Magazine Publishers of Australia
  
• Australian Consolidated Press
  
• Pacific Publications
  
• Lovatts
  
• News Magazines
  
• eMap
  
• Time Inc
  

Radio

• Australian Radio Network (ARN)
  
• Austereo
  
• Macquarie Regional Radio Group
  
• DMG Radio Australia
  
• ABC Radio Australia
  

Internet

These are the top sites based on Alexa, excluding sites already listed above.

• Nine MSN
  
• Yahoo 7
  
• Real Estate
  
• Seek
  
• Car Sales
  
• Australian Bureau of Meteorology
  
• Sensis
  
• Bigpond
  
• RSVP
  
• Whirlpool Broadband News
  
• White Pages
  

Outdoor

• Outdoor Media Association
  
• APN Outdoor
  
• Eye Corp
  
• TorchMedia
  
• Claude Group
  
• TorchMedia
  
• GOA billboards
  
• Adshel Street Furniture
  
• Network Outdoor
  
• Paradise Outdoor Advertising
  
• JCDecaux
  

Cinema

• Independent Cinemas of Australia
  
• Val Morgan
  
• Star Media Platinum
  
• Hoyts
  
• Greater Union
  
• Village
  
• Reading
  
• Dendy
  

Commentary of Australian Media Convergence

Following on from my post on the convergence of media a number of Australian players and analyst have made some signficant comments.

Harold Mitchell of Media & Partners recently commented on the acquisition by Lachlan Murdhochs company Illyria launched a bid to buy half the 93rd biggest company listed in Australia Consolidated Media Holdings. Harold Mitchell said

this is a very clever move by both families - especially when the share price of CMH has gone down.

There is an announcement on the Illyria web site. It includes the following comment ...

Illyria's unique combination of experience in pay TV, broadcast and print media will provide the privatised Consolidated Media Holdings with new growth opportunities over the long term.

How times change, in 2006 Peter Cox in an interview on the ABC was talking about media ownership said

And the problem for the Government, says Peter Cox, is that Murdoch's News Limited and Packer's PBL have opposing objectives ... News Limited's now decided, gee, we actually want to do things that are not exactly the same as what Packer wants, and therefore they have a stalemate.

Lahclan Murdoch speaking to BusinessDay said

I'm only interested in running businesses I can add value to, so in order to pay the sort of premium we're paying for CMH — which is a 30% premium once you take the Seek shares out — I've got to be confident I can add value to justify that premium, and obviously I can add value most around the media assets.

He continued to say "This is going to be my focus over the years to come if we're successful."

A number of key players in the media market own the majority of new media in australia including realestate, jobs, car markets. One thing that can be said for worldwide media is that it is evolving very quickly at the moment.

The Convergence of Media (Internet, Television, Press, Cinema, Outdoor)

I have spent my entire career in Media (IT related of course)

Some of these companies include:

• No. 1 broadcast television network in Australia


• Advertising agencies in Australia, Asia, South Africa


• Magazine publication company in Australia


• No. 1 newspaper publisher in the world


• Cinema companies in Australia and Asia


• No. 1 Outdoor advertising company in Australia and New Zealand

Working with a large cross section of media and advertising has given me the opportunity to see media change from both a business perspective aswell as a technology perspective.

There is a lot of discussion about the future of television and its convergance with the internet. We have already seen all the major television networks convert to digital.

(Michael Arrington, TechCrunch) says “I’ve been paying a lot of attention to the signals NBC is giving to the market around their IPTV and social networking plans. Most of the other players have fallen into place - Fox with MySpace, CBS is in bed with YouTube, Viacom looks to be partnering with Tagworld, etc. Everyone except NBC is at least experimenting with online TV in other ways, too."

Even the largest Magazine Publication Group (ACP - part of the PBL Media Group) in Australia continue to acquire or develop new magazines and with each comes a new website.

Wikipedia says ...

Convergence of media occurs when multiple products come together to form one product with the advantages of all of them.

In Australia Network Seven (Television Network) has acquired a number of companies including Engin a VOIP company and more recently Unwired the largest unwired ISP and apart from their deal with Yahoo to create a new portal Yahoo7 they are working on a deal with Tivo.

My observation is:

As media companies (Google included) continue to acquire other media and internet companies - their very nature they will continue to forge new synergies between disparate organisations thereby fast tracking the convergence of this industry.