The New Media Age: Surviving and Thriving in a World of Changing Technology

Has the new media era finally arrived? The promise of a new interactive digital age has been bandied about for a while but in this time of video content and blogging and fragmented media are we finally there? These three men who are all working to determine what the consumer wants before they know they want it seem to think so. For three men in essentially competing businesses there is a lot of good natured, friendly competition. Peter Chernin of Fox says that here has been unbelievable change over the past year and that every part of his business has changed. People are moving faster and faster and they are desperate for content. Bob Iger from ABC also agrees that the speed of change is accelerating. He says that they are focused on creativity and the consumer and that right now "technology is to media companies what refrigeration was to Coca Cola." Jonathan Miller of AOL says that the new doesn't replace the old there is a convergence both in the consumer who is now accustomed to handling content on a variety of platforms and and in the companies which are learning to deal with multiple ways of distribution.And what about YouTube, the video-viewing system that has suddenly taken over the web? Is YouTube something the behemoths of the industry are worried about? This industry has learned their lessons from the music industry and the Napster debacle. Instead of working against new technology they are trying to find ways to work with the new technology. They have learned that the smaller screens and longer download times are no impediment to the younger generation. The video industry, which already has a multi-level distribution model in place with movies which are distributed as videos for rentals and sales, has a stronger business model for dealing with this than the music industry did. YouTube has 40 million views per day for their content and 90% of the favorited YouTube content is copyrighted.

Peter Chernin finds the incredible pent-up demand for video content very exciting. Bob Iger says they saw this coming a long while ago through (believe it or not) America's Funniest Home Videos, which proved that people are fascinated by the act of watching things (even if it's umpteen shots of a man getting bitten in the crotch by a dog). He doesn't think YouTube will put them out of business because as a culture we are spending more time consuming media. Jonathan Miller isn't scared either because "Amazon didn't replace Wal-Mart, YouTube won't replace original content." Companies are using YouTube for their own advantage (an example is putting advertisements like the trailer for "Scary Movie IV)." Jonathan Miller and Peter Chernin both believe that buying MySpace is a great deal (even at $540 million) and that it is on its way to being the top website (although it's around 50th in revenue). Dennis Kneale seems shocked by this and Peter Chernin teases "is your profile not attracting the number of friends you'd like?"

Dennis Kneale asks Bob Iger if selling Lost and Desperate Housewives via iTunes squeezes network affiliates. He says that "It is hard to embrace change when that change is viewed as threatening."

Will there be a day when movies will be available on DVD and theaters at the same time? Bob Iger feels that there is a reason to make movies for the big screen experience and that they will continue to do this. Peter Chernin says that they are gearing toward doing a 60-day post theatrical HD rental. That is worth several billion in revenue and that you can try to manage a traditional business as well as embrace change. He also makes the bold statement that "we'll abandon the movie theaters if someone can replace the revenue."

What is AOL doing for video?
Jonathan Miller says they started the live music sessions offering music performances on the net to get their toes in the water. Now they are putting the Warner Brothers catalog online for free and selling ad space around it. These types of properties are a different kind of ad sell because they are cumulative as opposed to day and date in the way that television is.

The question is how to make video search and video navigation work on the web?
Bob Iger talks about how they are offering free episodes the morning after they run on abc.com (with ads) or through itunes (ad free) for $2. Also the widely popular "High School Musical" is another example of a multi-platform model. It sells for iTunes on $10, runs on the Disney channel, has a top-selling CD and soon a DVD. They are also looking on turning it into a global musical, creating a screenplay licensed to high schools, possibly putting it on Broadway and creating global tracks for different countries.

Fox is taking a different approach than ABC, instead of offering things on iTunes they are moving toward "mobisodes" which are episodes for wireless devices. There are twice as many cellphones in the world as television sets. Chernin brings up the possibility of taking the finale of 24 and offering it on a paid platform before it airs on television. It's not something they are planning this year but it could be a possibility.

Jonathan Miller sees the Google search box as a web model for cutting everyone in on the action and letting them be your distribution path. Dennis Kneale asks if Google is an enemy or rival. Bob Iger says no, they point consumers in their direction.

Bob Iger says that "advertising follows consumption." Advertisers were happy with the ABC plan to air the online shows on abc.com and paid to have their ads online (essentially paying twice for the same ad). Peter Chernin says that "ad sales on MySpace are doubling each month."

What are the challenges of the new media?
The use of search fragments and sends people in a lot of different directions but unique content stands out. In a world of massive choice developing a strong brand is key. Advertisers are desperate to get video content on the web. Peter Chernin sees piracy as a potential problem for the future. Jonathan Miller says that you have to make great experiences for the consumer. Iger, who at ABC is straddling both worlds, says you have to balance between the old business and platforms and new models. Peter Chernin wonders if the cell phone is the best place to watch long form content but that for commuters, it is an exciting new option. Jonathan Miller says the question is whether the cell phone is a different medium or a new version of the same thing.

The overall message seems to be that there is no one path to follow. Companies competing in the new media age seem more and more willing to experiment, to try new things and move in unfamiliar directions. Instead of fiercely guarding their secrets they seem willing to share and see collaboration as being better for business as a whole. In order to attract the consumer who is like a content-hungry bee moving from flower to flower (or in this case, iPod to cellphone to computer to televison) these companies are learning that they have to make their offerings available in more than one format.