New Media Business Models in Social and Web Media

Abstract

The author argues that the economic shakeout of media firms and economic downturn of media markets is dominantly evident in traditional media industries whereas in new media the profit has been relatively stable. He argues that a real media crisis began a decade before the global recession that started in September 2008 and resulted from the emergence and subsequent convergence of digital media, falling costs of computing and online (internet-web) distribution, exponential growth of internet and broadband adoption and media market deregulation. The author argues that in order to attain sustainable competitive advantage, media executives and companies are required to strategically adopt, implement and utilize new consumer strategies integrating micropayments, new advertising models, innovative distribution methods, new audience concepts and high quality social and web media content production.

Key Words:

• media consumption
• user-generated content
• micropayment
• strategy
• web and social media
• content re-purposing