J.P. Hannan

The Problem of Media Economics: Value Equations Have Radically Changed

Two great examples of how media has changed. It all comes down to relevance and actionability.

Younger people no longer think to look at newspaper classified ads for their primary source of help wanted, apartments, and for sale by owner simply because print classifieds are not actionable in a point and click world. Hence, the audience there has atrophied to a much older demographic, and subsequently, the content is no longer relevant to that younger demographic. It doesn't mean there isn't a business model there to cater to classified needs of older readers, but the one size fits all wide audience model is gone.

The Netflix story just shows how media has gone from being a sit down meal to Vegas buffet. We pick and choose as we desire, again seeking relevance but we also want it all within reach when we choose to load the plate- we want it actionable. This is a tough order to fill, but media companies now have to be ready, fully stocked and open 24/7, 365 days to keep them coming back.