The Internet has given traditional media an ultimatum: Adopt the ways of new media companies, or die a painful death.
Publishers of newspapers, magazines, and cable television (i.e. traditional media) are already struggling to survive in the world of new media. Market share of traditional media companies is consistently lost to new media counterparts. It’s only a matter of time before traditional media is gone for good, leaving the best adapted companies standing.
Shifts in Consumer Expectations
On the Internet consumers expect quality information, news, and entertainment to be free, convenient, and instantly accessible. It is easy for the internet based new media companies to satisfy these expectations, while traditional media companies find it much harder.
The Internet as a platform for the distribution of media incurs a fraction of the expenses associated with traditional media. Printing, shipping, and many other expenses are largely eliminated, while most major expenses of new media are scalable. This allows new media companies to provide services and content for free by relying solely on revenue from advertisers to maintain profitability.
