The marketplace continues to transition from traditional media production, distribution, and consumption to digital platforms, we know this because we spend time using social media outlets like Facebook, Instagram, and Twitter to retrieve news, and we use the same outlets to tell (selected) people about ourselves and stay in touch with our network and family in ways we have never done before as consumers.
This opened the doors of communication and is disrupting how we buy goods and services, and where we get our news and information. The decade of 2020 will be full of dramatic changes as part two of the internet revolution gets revenue traction and our population ages.
The demographics for younger users shifts to 100% mobile and regular changes occur as new software emerges that has better security, or new features. Hardware prices are rolled into the monthly phone charges rationalizing $1000 handsets, which have become status symbol accessories.
As an example, Facebook becomes more popular with an older demographic while Instagram, Twitter, TikTok, and YouTube become mediums favored by younger consumers. The boomer generation eventually migrates, but only after they are prompted by their kids or grandkids. This has been happening in hardware since the Apple desktop.
Video is a simple way to convey a message for smartphone users, and as technology improves, the cell phone becomes a faster and more powerful accessory status symbol. The hardware cycle not only represents Apple or Android as a communication tool but has created a generation of cord-cutter consumers who are stubbornly mobile, watching nearly all media from the handset.
Cord-cutting has affected business and consumer choices about how, when, and what entertainment to consume. Multi-channel networks work with video platforms to help video channel owners create, fund, promote and sell digital content in exchange for advertising revenues.
These consumers prefer wireless devices over landlines, and disconnected cable services and use smartphones as an office and communication tool at alarming rates. These market disruptions have led to new challenges in domestic and foreign markets, as well as new opportunities.
Piracy and illegal file-sharing continue to plague the Media & Entertainment sectors. It is difficult to quantify losses from piracy and to calculate piracy rates accurately, therefore many industry groups and businesses track piracy around the clock, and online takedown notices are rising dramatically as a result.
From current research, one can estimate revenue losses from digital and copyright theft to range in the billions of dollars, a report by Economist Stephen E. Siwek defines core copyright industries as “those industries whose primary purpose is to create, produce and distribute,… also provide significant value added to GDP; an increasing number of high-paying jobs; real growth which outpaces the rest of the economy; and substantial foreign sales and exports, surpassing many industry sectors.” proving security becomes a dominant issue for the growing mobile community.
Media production as we know it is in an age of change where everything is done from your handset, and the laptop/tablet becomes a tool used more as a viewing device (television), and an office tool and storage device that connects to the cloud. We expect these changes in trend to continue as we enter the new decade as the changing world of mobile devices take hold.