1、E-Commerce 2017: Business. Technology. Society.Thirteenth EditionChapter 10Online Content and MediaSlides in this presentation contain hyperlinks. JAWS users should be able to get a list of links by using INSERT+F7Learning Objectives10.1 Understand the major trends in the consumption of media and on

2、line content, the major revenue models for digital content delivery, digital rights management, and the concept of media convergence.10.2 Understand the key factors affecting the online publishing industry.10.3 Understand the key factors affecting the online entertainment industry.Cord Cutters and C

3、ord Shavers: The Emerging Internet Broadcast System (I B S)Class DiscussionDo you subscribe to any online video streaming services? If so, which ones?What sites have given you the best overall viewing or entertainment experience, and why?What are the advantages of watching traditional television ove

4、r watching online T V and films?Trends in Online Content (1 of 2)Mobile platform accelerates the transition to digital contentDistributors become significant players in content production businessContinued growth of online video and musicE-book sales growth slowsDigital music sales top physical sale

5、sConsole games flatten as mobile games soarTrends in Online Content (2 of 2)Four Internet titans compete for ownership of online content ecosystem: Apple, Google, Amazon, and FacebookNetflix the largest consumer of bandwidthCloud storage serves huge market for mobile device contentF C C issues new n

6、et neutrality rulesTime spent with digital media exceeds time spent with televisionContent Audience and MarketAverage American adult spends 4,300 hrs/yr consuming various media2015 U.S. entertainment and media revenues (online and offline): $262 billion50% U.S. population watches T V onlineDesktop a

7、nd mobile use: 5.7 hrs/day80% television users multitaskFigure 10.1 Annual Media ConsumptionInsight on Society: Are Millennials Really All That Different?Class discussion:What are some of the defining socioeconomic and behavioral patterns of Millennials?In what ways does the hard evidence about Mill

8、ennials not fit stereotypes about them?Why are Millennials so sought after by advertisers?Do you self-identify as a Millennial? Why or why not?Internet and Traditional MediaCannibalization vs. complementaryDoes time on Internet reduce time spent with other media?Massive shift of audience to Web, tab

9、lets, smartphonesTelevision viewing, music consumption remains strong, reading has increasedImpact of Internet:Increase in total demand for media, including traditional products like booksPhysical products replaced by digitalFigure 10.2 Media Revenues by ChannelDigital Content Revenue ModelsOnline c

10、ontent delivery revenue modelsSubscriptionA la carteAdvertising supported (free/freemium)Free content can drive users to paid contentUsers increasingly paying for high-quality, unique contentFigure 10.3 Online Content Consumption 2015Free or FeeEarly years: Internet audience expected free content bu

11、t willing to accept advertisingEarly content was low qualityWith advent of high-quality content, fee models successfuliTunesMillions of users buy from legal music sitesYouTube cooperating with Hollywood and New York film production studiosDigital Rights Management (D R M)Technical and legal means to

12、 protect digital content from unlimited reproduction and distributionD R M hardware and software encrypts contentStreaming contentDifficult to copyWalled gardenMedia Industry StructureThree separate segmentsPrintMoviesMusicEach dominated by few key players with little crossoverTransmission industry

13、highly oligopolisticTwo dominant players in each distribution marketA T & Tand Verizon; Comcast and Time WarnerMedia ConvergenceTechnological convergenceHybrid devicesContent convergenceThree aspects: Design, production, distributionNew tools for digital editing and processingIndustry convergenceMer

14、ger of media enterprises into firms that create and cross-market content on different platformsFigure 10.5 Convergence and the Transformation of Content: BooksOnline Publishing Industry$93 billion based originally in print, moving rapidly to InternetThree segmentsOnline newspapersE-booksOnline magaz

15、inesOnline NewspapersMost troubled segment of publishing industryRevenues shrunk from $60 billion in 2002 to about $30 billion in 2015Four factors in declineGrowth of Web, mobile devices as alternative mediumAlternative digital sources for newsFailure to develop suitable new business modelsRise of s

16、ocial media and role of directing traffic to newspaper contentFigure 10.6 Newspaper Revenues 19802015Figure 10.7 Online Newspaper Models 1995-2016Online Newspaper Industry: Strengths and ChallengesStrength: Newspaper audience size and growthChallenge: Digital ad revenueStrength: Content is kingChall

17、enge: Finding a revenue modelChallenge: Growth of pure digital competitorsChallenge: Can newspapers survive digital disruptionInsight on Business: Vox: Native Digital NewsClass discussion:How do you read news online? Which sites do you prefer, and why? Have you visited any Vox sites?How are all digi

18、tal news sites changing journalism?What unique qualities have made Vox Media be seen as the future of digital news publishing?Magazines ReboundPhysical magazine circulation falls after 2001Exception is special interest magazinesDigital replica magazinesAd revenue growingTotal audience size increasin

19、gPopular websites drive traffic to online magazinesThe New Yorker Today appiPad Subscription ServiceMagazine aggregatorsE-Books and Online PublishingE-book sales have exploded in recent years$7.6 billion in 201626% of all consumer book salesNew channel for self-publishing authorsHugh Howeys Wool (20

20、13)Major publishers still dominant source of book contentWhile some large bookstore chains have disappeared, small independent bookstores have grown 27% since 2009.Amazon and Apple: The New Digital Media EcosystemsE-book hardware, software, combined with online megastoresAmazon Kindle: Linked to Ama

21、zon store and cloud storageApple iPad: Multipurpose tablet, linked to Apple storesAuthors able to bypass traditional agent, publisher channelsE-Book Business ModelsE-book industry compositionIntermediary retailers (booksellers), traditional publishers, technology developers, device makers (e-readers

22、), vanity pressesWholesale modelRetailers pay wholesale price and establish retail priceAgency modelDistributor as agent must charge publishers retail priceApple and book publisher price-fixingAmazon vs. HachetteChallenges of E-Book PlatformControl over pricingAmazon controls largest market share fo

23、r e-booksAmazons own book publishing brandFurther evolution of digital distribution platformKindle Unlimited subscription serviceDigital marketplace exchanges for peer sharing of digital filesConverging technologiesInteractive books, iBook Author, iBook TextbooksFigure 10.12 E-Book SalesOnline Enter

24、tainment Industry (1 of 2)Four traditional players, one newcomerTelevisionRadio broadcastingHollywood filmsMusicGames (new arrival)Online Entertainment Industry (2 of 2)Internet is transforming industry:Mobile devicesSocial networks featuring video streamingDownload and streaming servicesGrowth in b

25、roadband accessClosed streaming platforms reduce need for D R MEmergence of very large-scale, integrated technology media companies Amazon, Google, Apple, and NetflixFigure 10.14 Projected Growth in Online EntertainmentTelevisionTransition to new Internet delivery platformsStreaming and downloading

26、servicesO T T: Over-the-top (Internet) deliveryMobile platformBinge watching vs. linear T VSocial T VF C C sproposed “open set top box plan”Social network influencesUncertain future for cable T V growthFeature-Length MoviesHollywood maintaining control of content creation, delivery, and revenueD V D

27、 s, rental D V D sElectronic Sell Through (E S T) downloading moviesSubscription streamingVideo On Demand (V O D)ChallengesDigital formats produce less revenue than physicalPressure to change release windowsGrowing strength of online movie distributors like NetflixSites streaming or providing downloads of pirated contentFigure 10.17 Major Online Movie DistributorsInsight on Technology: Hollywood and the Internet: Lets Cut a DealClass DiscussionWhat challenges has the Internet posed to traditional Hollywood movie distribution? What i