The Opportunity – Accelerating the Media Industry

‘We create successful businesses that exploit the unprecedented choice,
control and convenience of the broadband video economy", Peter Hamilton

We are living through a unique moment in the history of human communications: A massive technical disruption is upending established relationships across the entire commercial media landscape. Digital technologies are rendering obsolete the established relationships among content generators, packagers, distributors, advertisers, funders and service providers.  

This disruption creates enormous uncertainty and anxiety for established players that have thrived in each of these markets, but equally enormous opportunity and excitement for entrepreneurial entrants.

M&AMG helps entrepreneurs and industry leaders address these challenges successfully by devising business models that exploit new technological opportunities to replace the models that thrived under older generations of communication technology.

M&AMG approaches this challenge bystudying global markets, targeting business opportunities, devising strategies, identifying partners, developing business plans, negotiating deals, arranging finance, and forming profitable ventures.

The key to understanding the disruption and its implications is broadband. Broadband technology is driving a fundamental re-arrangement of the relationships among financiers, developers, producers, packagers, distributors, and consumers of video programming. Broadband obliterates longstanding communications barriers and reduces costs throughout the value chain, replacing a traditional economy of video scarcity with a revolutionary economy of video ubiquity.

Traditional gatekeepers face unprecedented challenges. Terrestrial TV operators, cable and satellite operators, and advertising agencies have long thrived by parceling the scarce resource of high-quality video among a desirous paying public; demand has always outstripped supply. The sudden explosion in both video supply and video distribution outlets has undermined this long-accepted central truth. And because video is an emotionally powerful medium, low-cost IPTV (Internet-protocol digital TV) similarly undermines the truths governing traditional media outlets such as print and radio.

The IP-enabled economy is expanding rapidly. Consumers can now access virtually any audiovisual content, including HDTV, anytime, anywhere, and on any video-capable device. New video-based networks and communities are emerging; each one provides new opportunities to distribute, track and monetize the exchange of video. Several metrics capture the velocity of this change and indicate its likely near-term acceleration:

  • According to comScore, 178 million Americans watched 33 billion online content videos in February 2013, while the number of video ad views reached 9.9 billion with Google Sites delivering an all-time high of 2.2 billion.

  • According to IHS iSuppli Corp., the number of global broadband subscribers will amount to 949 million by 2015, up 58% from 600 million in 2011.

  • According to The Harris Poll, over half of Americans (53%) indicate having watched digitally streamed TV programming on any device. Streaming is among the top ways 18-35 year olds watch TV programs, nearly tying top-ranked live feed TV (as it airs), 44% live feed TV, 41% streaming.

  • eMarketer estimates that by 2014, nearly 75% of all US internet users will watch video online at least once per month.
The implication is obvious: IPTV is poised to explode, following the pattern that on-line music set only a few years ago. The potential is enormous—as are the pitfalls of failing to adjust. The potential is enormous—as are the pitfalls of failing to adjust. Success in this layered and complex new world will require expertise in the technologies, the timelines, and the consequent new business models that they enable. M&AMG will provide this expertise.
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