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A thought experiment by the Mediaware Database Group
  September 09, 2002

We live in turbulent times!

Till the early nineties, computer technology was used to facilitate decision making by storing & quickly retrieving business information. Somewhere, the line between computer technology and telecom started blurring. Information technology (I.T.) was the new name. And game.

The past decade has seen I.T. developing at a furious, never-before pace. In the late nineties, business processes were
(re-)designed on the basis of available information technology.

Today, new businesses are conceived on the foundation of emerging technology.

On another track, the sheer growth of television medium vis a vis print is a clear indication of the audience's preference for electronic media. (NRS 2002 has revealed 10% growth in TV viewers in urban India. In comparison, the increase in urban newspaper readers is practically nil.)

Everybody is aware of the marketing companies' obsession to get into every household. What is not so obvious is the fact that the Govt. machinery needs to access individuals. And what better way than through the television route? With set-top boxes leading the way to digital / interactive television, it seems clear that the TV set will be the hub of the future household. From the Govt.'s point, can you imagine the benefits of being able to address each household individually as well as collectively at negligible cost? Just think of disseminating health-related information to each individual or collecting taxes without a large (& very often corrupt) revenue department. And selling state-run lotteries via television. Or conducting polls via television.

To assess the projected impact of technology, we conducted a 'thought experiment'.

We started by tracing the origins of the 2 mass media: print & television and went on to record the evolution and the current state of each, recording the changes in physical characteristics, content focus & revenue sources. On a parallel track, we traced the development & progress of information technology and the internet. And finally, we super-imposed the two tracks.

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NEWSPAPERS & MAGAZINES
  
TELEVISION
Genesis
Physical Characteristics Content Focus &
Revenue Sources 		  Physical Characteristics Content Focus &
Revenue Sources
• Produced using paper & ink process. • News with some space devoted to basic entertainment. • Produced using camera &   film medium.

• Originally started with news.
• Needs to be physically distributed. • Sharp division between editorial & ad departments. • Volatile medium. Viewer cannot (easily) store and replay content.

• Later included entertainment.

• Requires lead-time to reach reader. • Major revenue from ads. Supported by subscription cost. • Wide reach built up over    time. • Revenue from advertising   only.

• Ideally suited for document-driven communication.

   • Near instant distribution. • Hazy line between content   & advertising.
Print --------------------Evolution-------------------Television
Physical Characteristics Content Focus &
Revenue Sources 		  Physical Characteristics Content Focus &
Revenue Sources
• Started with black &   white (monochrome), text   only. • Over time, entertainment started competing with news. • Started with black & white. Graduated swiftly to colour. • Entertainment quickly overtook news content.
• Evolved to multi-colour, graphics capability. • Product promotion is now a source of revenue. • Gave birth to many new    industry segments:
 › the TV set manufacturing    industry.
 › cable industry.
 › TV programming industry.
 › "Set-top-box" manufacturing     industry.
 › "audience poll" market     research industry.		 • Major revenue source remains advertising.
• Imroved printing technology, delivers   faster output. • Weakening of partition between editorial & ad departments.  

• Better   telecommunication
allows sharing of content
between editions.

    

• Micro control over
distribution systems.

     • New source of revenue
is Pay TV - subscription fees from viewers.
Print -------------------Today-------------------Television
Physical Characteristics Content Focus & Revenue Sources   Physical Characteristics Content Focus & Revenue Sources
• Technology has reduced   lead times between   news gathering &   distribution to readers. • Editorial sanctity compromised for commercial gains. • Set-top box & conditional access has heralded addressability of viewers. • Pay-TV is the new revenue stream.
• This has resulted in   split-runs, city editions, fax editions, local pages & intra city suburban editions. • Revenue from B2B & B2C activities organized by publisher. • Use of current   technologies like on-line   SMS has converted broadcast TV into a form   of interactive TV. • Revenue-sharing with telecom   operators for bulk SMS   messages.
      • Entertainment is a major focus area.                                                        

• News is back in  fashion (spurred by a series of disasters?)
Print -------------------Future-------------------Television
Physical Characteristics Content Focus & Revenue Sources Physical Characteristics Content Focus & Revenue Sources
• Most leading   newspapers & magazines have / will set up web-versions. • The nature of internet will permit storage & display of moving pictures. • Set-top boxes will lead the way to Digital/Interactive   TV. • Viewer addressability will lead to new revenue streams like direct marketing.
• Broadband access to internet will permit display/streaming of moving pictures and   interactivity levels hitherto un-imaginable in print. • Subscription based readership will lead to addressable readers & new revenue streams like direct marketing. • Interactive Television will become a new medium of communication. • Additional revenue from communications related activities.
• Delivery of internet & TV will merge. • Interactive ads with on-line participation, leads to products sales as another source of income. • Like many others,TV   signals will also be distributed via the internet. • Interactive ads with on-line participation, lead to product sales as another source of revenue.
• Inexpensive, foldable display screens may become the popular way   to access future electronic newspapers & magazines.

• The TV set will be used by the Govt. as the preferred route for entering into the individual's household.

• Delivery channels of internet & TV will merge.
• The future (electronic) newspaper may be accessible via the household TV set !  

                             

• Sharing of revenue with telecom operators for interactive programs.

In the future, it may be increasingly difficult to distinguish print from television.
And of course, content will be king !

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