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,#,Copyright 2018,2017,2016 Pearson Education,Inc.All Rights Reserved,#,E-Commerce 2017:Business.Technology.Society.,Thirteenth,Edition,Chapter,10,Online Content and,Media,Slides in this presentation contain hyperlinks.JAWS users should be able to get a list of links by using INSERT+F7,E-Commerce 2017:Business.Tec,1,Learning Objectives,10.1,Understand the major trends in the consumption of media and online 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.,Learning Objectives10.1 Unders,2,Cord Cutters and Cord Shavers:The Emerging Internet Broadcast System(I,B,S),Class Discussion,Do 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 over watching online,T,V and,films?,Cord Cutters and Cord Shavers:,Trends in Online Content,(1 of 2),Mobile platform accelerates the transition to digital content,Distributors become significant players in content production business,Continued growth of online video and music,E-book sales growth slows,Digital music sales top physical sales,Console games flatten as mobile games soar,Trends in Online Content(1 of,Trends in Online Content,(2 of 2),Four Internet titans compete for ownership of online content ecosystem:Apple,Google,Amazon,and,Facebook,Netflix the largest consumer of bandwidth,Cloud storage serves huge market for mobile device content,F,C,C issues,new net neutrality rules,Time spent with digital media exceeds time spent with television,Trends in Online Content(2 of,Content Audience and Market,Average American adult spends 4,300 hrs/yr consuming various media,2015 U.S.entertainment and media revenues(online and offline):$262 billion,50%U.S.population watches,T,V online,Desktop and mobile use:5.7 hrs/day,80%television users multitask,Content Audience and MarketAve,Figure 10.1 Annual Media Consumption,Figure 10.1 Annual Media Consu,Insight 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 Millennials not fit stereotypes about them?,Why are Millennials so sought after by advertisers?,Do you self-identify as a Millennial?Why or why not?,Insight on Society:Are Millen,Internet and Traditional Media,Cannibalization plementary,Does time on Internet reduce time spent with other media?,Massive shift of audience to Web,tablets,smartphones,Television viewing,music consumption remains strong,reading has increased,Impact of,Internet:,Increase in total demand for media,including traditional products like books,Physical products replaced by digital,Internet and Traditional Media,Figure 10.2 Media Revenues by Channel,Figure 10.2 Media Revenues by,Digital Content Revenue Models,Online content delivery revenue,models,Subscription,A la carte,Advertising supported(free/freemium),Free content can drive users to paid content,Users increasingly paying for high-quality,unique content,Digital Content Revenue Models,Figure 10.3 Online Content Consumption 2015,Figure 10.3 Online Content Con,Free or Fee,Early years:Internet audience expected free content but willing to accept advertising,Early content was low quality,With advent of high-quality content,fee models successful,iTunes,Millions of users buy from legal music sites,YouTube cooperating with Hollywood and New York film production studios,Free or FeeEarly years:Intern,Digital Rights Management(D,R,M),Technical and legal means to protect digital content from unlimited reproduction and distribution,D,R,M hardware,and software encrypts content,Streaming,content,Difficult to copy,Walled garden,Digital Rights Management(D R,Media Industry Structure,Three separate segments,Print,Movies,Music,Each dominated by few key players with little crossover,Transmission industry highly oligopolistic,Two dominant players in each distribution market,A,T,&,Tand,Verizon;Comcast and Time Warner,Media Industry StructureThree,Media Convergence,Technological,convergence,Hybrid,devices,Content,convergence,Three aspects:Design,production,distribution,New tools for digital editing and processing,Industry convergence,Merger of media enterprises into firms that create and cross-market content on different platforms,Media ConvergenceTechnological,Figure 10.5,Convergence and the Transformation of Content:Books,Figure 10.5 Convergence and th,Online Publishing Industry,$93 billion based originally in print,moving rapidly to Internet,Three segments,Online newspapers,E-books,Online magazines,Online Publishing Industry$93,Online Newspapers,Most troubled segment of publishing industry,Revenues shrunk from$60 billion in 2002 to about$30 billion in
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