Media content industry – bleak future ahead
Posted by Arun Uday on September 8, 2008
Some time back, I had posted about the shift in power in the media industry from content generators to content aggergators. That trend seems to be picking up steam and the content generation part of the value chain seems to be dying a death through thousand cuts. Nowhere else is this starker than the newspaper industry in the US, which is quickly sliding down the path to obscurity as it registered the supposedly sharpest ever fall in history during the first half of this year. I believe that other content industries such as the movie industry will also face some serious challenges going ahead on account of the following:
a. Surfeit of supply: According to this recent article just reported on WSJ, Hollywood has been hit by a glut of movies this year. In India as well, while there has been widespread welcoming of the institutionalization of the movie industry, one of the “negative” fallouts of this has been the huge quantums of capital being planned towards movie production including those by such large corporate houses as M&M and Reliance. One only hopes that the money and efforts will be judiciously utilized as much for better quality as an increased quantity of content and not just for the latter. Else, we could very well see supply far outstripping demand. Increased participation (in content production) of individuals/indie producers/ smaller media houses has also been another important factor in adding to the supply of content.
b. Backward integration by exhibitors: The other trend we are also witnessing is the moves by exhibitors such as multiplex and theater chain operators to get into movie production. I have personally evaluated a few such plans for potential investments. Again, although this is an understandable move by them (driven by need to tie in assured content that will fill their distribution ‘pipes’), this could again have the same consequences as those discussed above (in point a.).
c. Digitization and piracy: Digitization has the unfortunate concomitant effect of an increased ease of piracy. One of my Hong Kong teammates was mentioning to me as to how the HK film industry was virtually killed because of piracy (driven from mainland China). While surfing for something, I happened to bump into a Chinese website similar to Youtube thats a virtual online library of pirated Hollywood movies. The ease with which one can find and distribute pirated stuff is a major challenge that the media industry is grappling with.
In summary, its clear that we are moving from an era of a moderate supply of content where consumers paid for quality content to an era of an oversupply of easily accessible content where there’s little incentive for consumers to pay directly for content. This will be true of most forms of content, be they print, music or movies and hence, I believe that value will shift from the ability to generate content to ability to help consumers find the right content. This is not to say that content generators such as movie studios or television channels will completely disappear (after all there won’t be aggregators if there’s no content to aggregate). But, only that they will not be as highly valued as aggregators such Google.
I.V.SUBBA RAO said
RAGHUVAMSI IRON ORE PELLETZATION TECHNOLOGIES (GREEN FIELD PROJECT)
SEEKING FOR INVESTORS
GOOD MORNING, I am I.V. SUBBA RAO, I have developed advanced new technology, it is named as iron ore pellitization. Still it is not introduced in India for small medium and major sponge iron manufacturing industries.
We are planning to set up 50 T.P.D Commercial production plant, its cost is 24 Cores, but we are not financially sound enough. We have applied for patent rights on JULY 2007, regarding this technology so many domestic and other country small scale sponge iron manufactures are contacting through mails and through phones. Lot of customers is interesting to utilize our technology, while before that they want to see the operation plant.
If I set up 50 TPD plant i.e., both ways it is like to pellet plant as well as commercial production plant. If any one help for us financial loan of Rs 24. 0 Cores (Indian currency). I will set up the plant as early as possible (6.0 to 9.0months).
After starting the commercial production we will start clearing ours loan immediately, other wise if want sponge iron material we will supply the material (just like barter system).
Through this technology small, medium and major sponge iron manufacturing industries (Karnataka, Orissa, Jharkand, Chatisgarh, West Bengal and Madhya Pradesh) can use this iron ore power easily. Because of this technology sponge iron and steel manufactures can get lot of marzines / profits, the Indian Sponge Iron /DRI Economic growth turn over gone up to 50,000 Cores per annum.
This product (fines using) is burning problem of India and aboard for sponge iron and steel manufactures. This is unique technology; I have received so many mails with in short time in India and abroad. If any one can give me an appointment I will meet you and explain all other details.
After starting the commercial production we will start clearing ours loan immediately, other wise if want sponge iron material we will supply the material (just like barter system).
But I can not show you any security like property or any other documents.
I am waiting for your early response.
PERSONNEL NOTE: – OUR PATENT IS UNDER PENDING.
Thanking you,
RAGHUVAMSI TECHNOLOGIES
Ho.No.14-5-11.
OPP.BATCHU SRI DEVI HOUSE
SHIVALAYAM STREET
PEDDAPURAM
PIN:-533 437
ANDHARA PREDESH
INDIA-533437.
MOB:-09490188826
Erik Farrer said
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