Traditional Media Industry in Digital Media Universe - Essay Example

TECHNOLOGY Question Traditional media industry in digital media universe Traditional media outlets still has the largest audience. They include using the newspapers, magazines, radio or television. To connect the traditional and digital media, the website is used. Journalists use websites, blogs, social network sites to put news in the mobile devices, especially the laptops and android. Journalists also use this to develop story ideas and find sources of news. Television has the best opportunity in digital media universe. It is still the preferred advertisement tool in the business community. The television business owners have adapted to the changing digital disruption. Television has started streaming their news live in some sites like face book and YouTube (Papathanassopoulos & Negrine, 2013). There has been an increase in social television. Many people call it the second screen. They distribute news for the traditional television. Many people prefer television as the source of their news. They will follow the way of social television because of their similarity to traditional television. Different statistics around the globe point at the increased number of tablet and laptop owners using their devices watching television. Tweeter said that people post most tweets during the time the programs run in television. This happens when live programs air, example, the super bowl. The business opportunity in the digital universe is so open for the television industry. Social networks, like face book and twitter are interactive in nature. Players in television industry have created interactive television programs. By interacting viewers, television becomes more interesting, bonding closely television and the digital universe. Programmers have developed applications that run online television. Demand for these applications has been on the rise. This shows how the television has encountered major success in digital platform. The applications allow mobile device owners get instant news or watch their favorite programs. Many applications of the same are on the rise, because of competition, giving consumers the hard time to choose which the best is. This has resulted to mergers and acquisition in order to give the consumers the best services, cementing the business opportunity television enjoys in digital media universe. Demand for television services, like advertisements, are on the rise because of it coping with the technology changes. An average adult spends almost five hours a day online. Online television is the most watched news urgency if a person wants to get the day’s news and trending topics. Newspapers are the most threatened to transition of digital media (Papathanassopoulos & Negrine, 2013). News available in newspapers is always late by a day. It cannot be depended if the audience want breaking news. Breaking news belongs to the place where the delivery is fastest. A person will rather use the website other than waiting for the next day’s newspaper. Newspapers cover the story that happened deeply. A person with a tablet or laptop will have an idea of what happened earlier. The sales of newspapers will face a decline because of the usage of online news. Some newspapers agencies have created websites to air their news online. They suffer competition from television, because they do not stream their news rather they submit it in written form. Audience is attracted to streaming news, but few like reading the news (Papathanassopoulos & Negrine, 2013). The main agenda for newspaper agency creating websites is to tease the audience to buy the next day’s paper. The site users are mainly interested in current news, not next day’s news. Question 2 American media, Inc. American media, Inc is a publisher of group of magazines in America. They specialize in the fields of celebrity journalism and general lifestyle. Their revenue has been on the increase since 2011. They spent most of their revenue in production. Production expenses in 2013 were 27% of their operating costs. It was 35% for fiscal of 2012 and 2011. The reduction in cost is because the company purchases paper directly from suppliers and then takes it to a third party printing company. Paper cost has increased globally. The company has a long-term contract with their paper supplier. This is to manage the cost of paper. The company has experienced a reduced cost in freight services. It was 23% of their fiscal in 2011, but was 19% in 2013. To reduce the cost of sales and marketing of their magazines, the company delegated those duties to third-party wholesalers. Only 54% of the 2013 fiscal represented money spent on distributing subscription magazines. The United States Postal Service is responsible for distributing this. The governor of the corporation reviewed the postage prices, therefore a reduction in spending. The company has direct contact with retailers. This has seen an increase in supply of their publications. They owned a respectable 25% share of total America and Canadian magazine circulation. The company supplied 5.9 million copies in 2013 maintaining the same number from 2011. It observed that 13% of 4 million paid subscriptions are digital. This is a record in the media industry. Revenue collected digitally rose by 23% in 2013. The hardworking workforce who are committed to giving their best, are behind this success. The digital sellers have increased and the company has hired 90 of them. In 2013 fiscal, the company launched the shape and men’s fitness. The revenue for advertising shape rose by 21%. This equates 14% of the total shape’s revenue. The trend in 2014 is on the rise. Shape magazine became number one share-of-market in written advertisement (Papathanassopoulos & Negrine, 2013). The 2013 fiscal saw the company’s celebrity brand segment collecting 62% of the total revenues. This was a major boost. Women’s active lifestyle collected 15% of total revenues. There was decline in operating revenue. The decline was 12% from previous year. The income from operating had a boost. The company implemented the Management Action Plans. The cost of operations reduced significantly. The reduced advertising meant there was reduce in total operating revenue. By the end of 2013, the company had cash of $2.4 million and deficit of $22.6 million. To keep their revenues high, the company published seven weekly publications. The 2014 fiscal year looks bright for the company. New administrators provide leadership. David Zinczenko, former editor in chief of Men’s Health magazine, rejoined the company. He re-launched the magazine, with its sales hitting a double digit in fiscal 2014. The sales will continue rising, since Arnold Schwarzenegger also returned to the company’s editorial team. Moody’s rating outlook viewed the company as a competitive organization. Moody argues that, by maintaining high sales of monthly magazines in competitive markets, the company is a model to many. The rating outlook credited the company for making revenue collection remain high and creating free cash flow. If circulations of magazines reduce due to free cash flow, the rating reduces (Papathanassopoulos & Negrine, 2013). Reference Papathanassopoulos, S., Negrine M. S. (2013). European media. Athens: John Wiley & Sons. Read More