TAILIEUCHUNG - Lecture E-commerce (7/e): Chapter 10 - Kenneth C. Laudon, Carol Guercio Traver

Chapter 10 - Online content and media. The main contents of this chapter include all of the following: Trends in online content, 2010-2011; content audience and market; internet and traditional media; digital content delivery models; media industry structure;. | E-commerce Kenneth C. Laudon Carol Guercio Traver business. technology. society. seventh edition Copyright © 2011 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc. Slide 10- Chapter 10 Online Content and Media Copyright © 2011 Pearson Education, Inc. Information Wants to Be Expensive Class Discussion Why did the Wall Street Journal succeed with a subscription model? Would you pay to read a daily newspaper online? Why or why not? Would you pay for access to online archives of newspapers and/or magazines? Do you think newspapers can make the transition from “print on paper” to “news on-screen?” What do you think about the New York Times’ plan for a subscription-based model? Slide 10- Trends in Online Content, 2010-2011 Increased media consumption Internet media revenues fastest growing Growth of Internet audience outpaces other media User-generated content growing, inverting traditional production/business models Entertainment moves to mobile devices Internet advertising revenues expanding rapidly Slide 10- Trends in Online Content (cont’d) Content owners adapt mixture of advertising, subscription, ala carte payment for business model Paid content and free content coexist Convergence Newspapers in transition to online models Web becomes entertainment powerhouse Consumers increasingly support time-shifting, space-shifting in media consumption Slide 10- Content Audience and Market Average American adult spends 3,900 hrs/yr consuming various media 2010 media revenues: $973 billion TV, radio, Internet: Account for over 80% of the hours spent consuming media 20 - 30% substituting online entertainment for traditional Slide 10- Media Utilization Slide 10- Figure , Page 651 SOURCE: Based on data from . Census Bureau, 2010 Internet and Traditional Media Cannibalization vs. complementarity Time spent on Internet reduces time available for other media Books, newspapers, magazines, phone, radio Conversely,

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