Media Context

We are in the midst of a rare moment in the media business: fundamental technology and demographic trends have reached the point where they are causing severe disruption to traditional business models and creating a void in the media market that flexible, innovative and well managed entrants will fill.  Technology changes such as the widespread adoption of broadband internet, demographic changes such as the growth of the Hispanic population and the rise of a new Millennial generation are challenging the old media order.

Business Implications

After 20 years of proliferation of assets and consolidation of control in the media industry, scale has become less of a competitive advantage. This has forced companies to rationalize their business strategies by selling assets. Meanwhile, technological developments are stimulating demand from large numbers of people who want media tailored to their diverse interests.  Successful media companies will need to offer consumers greater interactivity and choice, and pursue business models based on targeting audiences and serving advertisers to improve performance, which will attract an increasing share of consumer spending and advertising dollars.