All components of the media and communication industry have experienced massive growth and development in the last 15 years. This development or advancement can be attributed to globalization, technological advancement, larger investment inflow and even a widening of the consumer base (Albarran 2010, p.61). The fast development of the media and communications industry has led to a quick turnover of how companies or corporations within the industry identify and communicate with their markets.
In this paper, the previous trends in the media and communications industry will be examined. Furthermore, the strategies that companies in the media and communication industries employed will be explored. The success or failures of these strategies will also be assessed. Lastly, the 3 key trends that will identify international media and communications markets in the next decade will be stated. The reasons why these 3 trends were picked will be analyzed and their role in the media and communications industry in the next decade will be justified. In summation, this paper will examine the past media and communications trends and strategies and predict 3 potential trends based on changes in the media and communication industry.
As technologies were developed and communication became easier, media and communication changed. A few trends were adopted in the last 10 years that influenced the strategies that recently adopted by corporations within this industry. These trends also help us to understand what key trends will define international media and communications markets in the next decade. Before identifying the recently adopted strategies and predicting future key trends, it is necessary to identify past trends in the media and communications industry.
1. The move from the traditional to digital platforms
In the last decade, there has been a move from the traditional media to digital platforms that ensure easier access to content. Digital platforms such as phones, tablets, websites and social media apps ensure worldwide access to content and engagement. Significantly, the move from print media to digital platforms is one of the most notable examples of this trend being applied. Many news media agencies have improved their consumer base by adapting to new technology and changing their delivery platform.
Alongside the change to digital media was a change in the delivery and distribution, the media and communications industry also experienced an evolution of the distribution methods (Grueskin, Seave and Graves 2011, p.14).
Once, the methods of distributing media content were prints, television, radio, and records. The move to digital platforms introduced a wider range of outlets through which media content could be distributed. This trend has been adopted in the last few years to ensure worldwide access to media and communication consumers. New distribution methods included social media, internet uploads, applications. All these methods were easily accessible on mobile phones, tablets, laptops, etc (Tarek 2015, p.2). Hence, the move to digital platforms became a trend. Many news agencies were saved by the move to digital platforms. For instance, BBC News invested heavily in its internet presence and is currently one of the most viewed news websites in Europe. The use of the internet platform also increased the revenue generated by the BBC corporation.
2. Digital ads for revenue generation
As many media companies shifted to digital platforms, the following trend became the use of adverts to generate revenue. This had relative success for a period but in recent years, it has been less effective for smaller media and communications companies. Companies and corporations such as Facebook and Google dominate in digital ad revenue generation (Thompson 2018). Instead of relying on revenue from print ads, media companies resorted to renting out ad spaces. The competitiveness of generating revenue gave way to the trend of the ‘diversification of revenue’ in media and communication markets. Media companies such as BuzzFeed have resorted to diversifying their streams of income, collaborating with smaller media companies and accepting sponsorships from brands such as Maybelline, Netflix, and Amazon (Johnson 2018).
These past trends show an adaptation to the technological advancements, a movement to more preferred platforms, use of digital marketing, building engagement, community and working with other media companies.
Recent and Current Strategies (Successes and Failures)
As the trends in the media and communications industry evolved, many corporations in the aforementioned industries adapted strategies to take advantage of the trends. Some attempts were successful and others were failures. Here are 3 recent strategies that have been adopted in the media and communications industry.
1. Community building
With the degree of success enjoyed by Facebook after it was launched in 2004, it was predicted by many media experts that social networking would be the future of communication. This led a plethora of companies within the media and communication industry to apply the community building strategy (Long 2018).
Google created google+, Yahoo launched Yahoo! Buzz and Apple briefly ran Itunes ping. The strategy of community building on a created platform was unsuccessful in these cases because none of these platforms were hugely unique. While Google+ outlasted the other platforms listed above, it eventually was discontinued because the platform could not hold consumer interest and was not seen as more valuable than Facebook (Denning 2015). More recently, Amazon launched Amazon Spark, this social media platform was created to connect Amazon prime members. This app which has been described as an Instagram for Amazon was to help individuals share what products they purchased or what movies and music they streamed on Amazon. However, due to a lack of content, limitation of the platform to apps and niche membership, the success of this platform has been minimal (Masters 2018).
Here we can see that the absence of a unique platform and original content has contributed to the failure of community creation strategies in the media and communications industry.
2. Offering additional benefits with subscriptions
One challenge news media publishers face in this digital age is generating revenue on information that can be acquired for free online. To generate revenue, news media publishers no longer rely solely on revenue from prints. Instead, a strategy employed by most media publishers is to offer a subscription service and attach incentives to the subscription. An example of this is The Guardian; In 2016, The news website began offering a subscription service which allows readers access to the app, live news updates, download option and the crossword game that is usually only available on the print (The Guardian 2017). This strategy was successful as the Guardian gained over 500,000 subscribers after 1 year of using this strategy (Meola 2016).
Similarly, The New York Times adopted the subscription model using a metered paywall. Instead of allowing free access to all their content, the news website only allows you to read 5 articles for free every month. Buying a subscription allows the consumer access to all available news stories. Using this strategy, the paper gained over 2.5 million digital subscribers since 2011 when the metered paywall was introduced (Ritcher 2018). Other media outlets who adopted some form of the subscription strategy include The Times, The Economist, Sunday Times, Washington Post, The Financial Times, and The Wall Street Journal.
3. Streaming platforms creating unique content
In this digital age, the value of unique content cannot be overestimated. In order to keep up with the demand for new content, streaming services have begun making, co-producing or distributing original movies and shows. This strategy has been adopted by media and communications companies like Netflix, Hulu, HBO, and Amazon Prime (Tabora 2019). Offering unique content has caused many media consumers to purchase over-the-top services. This strategy has had relative success on all the platforms listed above. Netflix is known for original shows like Orange is the New Black, Dear White People, Marvels Daredevil, Birdbox, and BoJack Horseman. Some Amazon originals are The Marvelous Mrs. Maisel, Bosch, Mozart in the Jungle and The Man in the High Castle.
All 3 strategies listed above showcase attempts by the corporations and companies in the Media and Communication industry to take advantage of trends. Here, the companies try to use Online community (Social Network), digital platforms, willingness to pay for premium content and the constant demand for original content. All these things play a role in understanding what the future trends in media and communication will be.
Predicted future key trends (How to justify these predictions)
Here, 3 key trends in that will define the future of media and communications markets will be analysed. The reasons for the inclusion of these trends in this list will be explained as well.
1. Digital marketing
Significantly, it has been difficult for media companies to make revenue through digital ads. However, the use of digital marketing to identify and communicate with media and communications markets will rise. Currently, numerous companies from different industries use digital marketing to get a wider audience for their content. The availability of the internet and technological advancements will allow media and communication companies have a global reach to consumers or potential consumers now and even more, in the future (O’Brien 2019).
The term ‘digital marketing’ spans a large number of advertising services but in this case, it will be narrowed down. Companies within the media and communications industry will focus on Influencer marketing and social media marketing.
Due to the increased use of social media and the influencer culture on social media and platforms like youtube, media and communications companies will focus on harnessing a market and advertise their
content using these methods.
Individuals on youtube who have millions of subscribers have a loyal following are already being used to market products and content. The loyal subscribers who find the YouTubers they watch relatable could look to the influencer for recommendations, hence media and communications companies can take advantage of digital marketing using influencers (Mathew 2018). These companies may choose to contact the influencer and ask them to promote their product. The company may also promote their content on the influencer’s platform; this includes paying for an ad space before the influencer’s content is shown. This can be commonly seen on Youtube.
Already Netflix advertise their content on Youtube. Prior to watching a video on the platform, you may be shown a video which encourages you to use Netflix. Some media and communications companies that have already begun to use influencer marketing include Walt Disney (its subsidiaries), Netflix, Samsung and Google.
Alongside influencer marketing, social media marketing will continue to be one of the digital marketing tactics employed by media and communication companies. Facebook has been used for years to promote content and reach a wide and sometimes targeted audience. By July 2018, Facebook had gained 2.2 billion users and the number of users on this platform has continued to grow (Sarnoff 2018). Similarly, Instagram has become a popular app for social media buffs. In September 2017, Instagram had 800 million users and, by June 2018, Instagram had gained over 1 billion active users. This app is expected to continue growing due to the introduction of the stories feature (Constine 2018). Facebook and Instagram apps are available on numerous devices and ads can be targeted to specific demographic. Apart from purchasing ads to promote their content, social media influencers on Instagram and Facebook will also be used to promote the company’s content or products.
Hence, it can be argued that the use of social media (particularly Facebook and Instagram) in the media and communications industry will continue and will even become more popular in the coming years. This trend is driven by the availability of technology, platform and community.
2. Visual Communication
The use of visual communication in media and communication will grow exponentially in the next decade. Already numerous companies in this industry have begun to apply visual aids to promote their content and attract a wider audience. Visual aids such as photographs, video, and charts will be used increasingly replacing articles or prints (Emmons 2018).
There are a few reasons that justify the assertion that visual communication is a key trend that will identify international media and communications markets in the future.
First of all, visual content can be used to communicate on a global scale irrespective of language or location. With the occurrence of globalization, visual aids will help media and communication companies communicate internationally. The use of visuals will also allow more information to be distributed with less effort. An example of this can be seen with print media such as The New York Times increasing the videos and photographs they use in their online platform (McCoy 2017).
Also, most of the social media platforms (Facebook, Instagram, Twitter, Youtube, and Pinterest) encourage the use of visual aids. These platforms also encourage engagement and response to the provided content. With billions of people using these platforms, it is logical to assume that the use of visual communication will become prevalent is the close future.
Lastly, there has been a significant increase of Youtube users and viewers. The average youth now prefers to watch a video instead of reading about similar content. This number is expected to rise in the coming years. This prediction is buttressed by Granados (2018) who states that social media and online videos will continue to promote and generate revenue for the media and entertainment industry.
In addition to this, Facebook has predicted an increase in video use on the platform in 2019 (Hutchinson 2017 ).
This shows the growing preference for visual communication. The future of visual communication includes virtual reality,audio reality, holo lens, and wearable technology (Emmons 2018). Apart from the use of visual aids such as pictures and videos, these technologies will also be used by media and communication companies to communicate with their audience. This trend is reliant on technology and content.
3. Over-The-Top Services
The third key trend I believe will define international media and communications markets in the next decade is Over-the-top services. In the last few years, a notable change has been seen in the way media products are consumed; more people are moving away from traditional media distribution to OTT services (Bludov 2018). Traditionally, regular programming was the norm but with technological growth, better communication methods, Companies such as Netflix, Amazon, Spotify have taken advantage of streaming and subscription as ways of distributing media content.
Here, I will explain the reasons why OTT services will be a key trend in the media and communications market in the next decade.
First, the development of a 5G network means that data can be downloaded effortlessly. Effortlessly acquiring data from the internet means that streaming videos and songs from media platforms will become a preferred method of consuming media. Furthermore, televisions are not needed to access these services. The availability of Phablets, Tablets and high processing phones means these OTT services can be accessed on the go (McFerran 2018).
Secondly, OTT services will continue to grow in usage because it is cheaper in the long run. Streaming and subscription services allow the consumer to access premium quality content for a fixed price. Paying to see a particular video, movie, download 1 song or read a single article becomes expensive with time. Hence, consumers would rather pay to gain access to a plethora of media content on an online platform. As a result of the increased use of OTT services, revenue from video streaming is expected to reach over $70 billion in 2021 (Cassola 2017).
A third reason for the assertion that OTT Services define media and communication markets in the next decade is that more companies in the industry will begin to provide OTT services. Streaming and subscriptions have begun to provide a higher revenue than conventional distribution methods. Currently, there is a high demand for new content (videos, music and even news articles) The increased demand has led to companies like Amazon and Netflix producing their own shows (Roderick 2018). Providing the in-demand content can lead to further consumer recognition and patronage. The issue though is that providing the new content consistently requires a financial investment. Therefore, to make an adequate return on their investment and generate revenue, many media companies will turn to offer OTT services in the future. An example of this is Spotify; the company gains about 90% of its overall revenue from subscriptions. Similarly, Disney plans to offer streaming services in late 2019 to allow consumers to access their products directly (Spangler 2017).
In conclusion, the past trends and recent strategies employed by media and communication companies provide an insight into what the trends will characterize the next decade of media and communication. Three trends; Digital marketing, visual communication, and OTT services show that; the proliferation in the use of digital media for marketing, an increasing willingness to pay for content and increased use of videos or images to relay information will dominate media and communications industry in the next decade.
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