Media Company Strategy How Legacy Format Audiences Can Fund Digital Transition
The 20,000 Foot View: Media’s well documented struggles of balancing the decline of ad revenue with building digital subscriber bases has resulted in surprising strategic actions by some of its largest entities. As the tech majors take more digital ad revenue form across the digital sphere, publishing, music and online video companies are quietly super-serving legacy products to consumers and stretching the existing high-margins in these areas, as a revenue hedge during this transitional period in digital monetisation.
- Many large traditional publishers have now established strong digital businesses but their legacy formats refuse to die
- Between digital ad revenues for the largest global digital ad platforms (Facebook, Google, Baidu and Twitter) increased by New York Times’s subscriber revenue was up by in 2017 compared to advertising revenue, which was up by just is a major threat to publishers’ digital ad models with of consumers aware of adblocking and ready to block ads at any opportunity
- Legacy format customers can generate invaluable revenue and margin as digital transitions continue
- The music business has tapped the legacy format opportunity with vinyl: of Vinyl sales in 2016 were within the high-spending older demographic Rock genre
Companies and brands Mentioned: Amazon, Apple, Bertelsmann, BuzzFeed, The Economist, Facebook, Google, Harper Collins, Instagram The New York Times, Penguin Random House, Vice, Washington Post, WP