UK: Media Predictions - TMT Trends 2008 – Part 2

Last Updated: 22 January 2008
Article by Deloitte Technology, Media & Telecommunications Industry Group

Most Read Contributor in UK, August 2017
This article is part of a series: Click Media Predictions - TMT Trends 2008 – Part 1 for the previous article.
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The movie theater becomes about more than just the movies

The movie theater – also known as the cinema in some countries – has enjoyed strong growth in recent years. Revenues, measured by box office sales, grew year-on-year from the mid-1990s to 2006, a year in which sales totaled $25 billion67. The outlook looks bright, with double-digit growth forecast68.

The robust state of the movie theater may make it the perfect time to consider how to re-invent a format which has seen relatively little innovation in the past 10 years.

There are a number of growing threats on the horizon. One is the potential for economic downturn. While in the last recession US movie theaters actually experienced growing sales69, the sector may not be able to bank on a repeat performance.

Another, arguably more ominous threat, is the growth of alternative sources of entertainment. In 2008, levels of PC ownership, broadband connectivity and game console penetration are all expected to increase. Additionally, large format, flat-panel television ownership is also likely to grow rapidly, as is the popularity of home-cinema surround sound. And the price of DVDs may well continue its steady decline. Even by the end of 2007, for the price of two movie tickets, a film buff could buy two movies on DVD – or the DVD player to play them on70.

The movie theater also faces competition from other entertainment venues, from sports stadiums to concert halls, all of which have received significant investment, and to some extent rising revenues, in recent years71. In the 2005 to 2006 season, soccer clubs in England alone invested £233 million ($476.5 millionii) in their stadiums72.

Technological advance is another catalyst for the reinvention of the movie theater in 2008, with the biggest change being the advent of digital film. This confers several advantages. Lower cost is one. Digital prints, stored on encrypted hard drives are cheaper to produce than the traditional film reel, which can cost up to £1,50073 ($3068iii), and don't need to be returned. Currently movie studios spend over $800 million a year in printing and distributing film reels to movie theaters74.

A more significant benefit of the digital movie theater may be in terms of flexibility. It may enable movie theaters to lose some of their homogeneity, attracting a larger and more varied, more loyal audience as a result. A single digital copy could contain various cuts of a film, each suitable for different customer type. The same digital file could contain a director's cut for movie buffs, a sub-titled version for the hard of hearing, an edit suitable for children or even a version with an intermission built in75. As digital copies, whether server based or hard-drive based, would take up less space than reels, individual theaters could build up their own secure libraries of films.

But the biggest change the transition to digital could make for movie theaters may have little to do with movie studios. In 2008, digitally equipped movie theaters could start screening events, ranging from sports fixtures to concerts. Historically major sports events and concerts took audiences away from the theater76.

Live relays could allow customers to flow back to the movie theater77. Digital movie theaters could become supplementary venues for events ranging from the Olympics to the opera78. Digital movie theaters may offer an experience as good as, or even better than actually being there. Hence, punters may be prepared to pay a premium to enjoy the Super Bowl in their home town, or Wimbledon without the rain.

The offer of different content may also require a redesign of a movie theater's ancillary facilities, such as catering. Opera fans may not care for hot dogs, but may be prepared to pay a premium for highend cuisine. Merchandising, from clothing to a DVD copy of the event just watched, may become a lucrative source of additional revenues.

With over seven billion tickets sold each year79, demand for the movies remains buoyant. But a move to digital may allow theaters to enjoy greater success by becoming more than just a venue to screen movies.

Bottom line

The movie theater's run of strong performance provides the ideal backdrop for change. The move to digital implies considerable capital investment, which is likely best accommodated while revenues are still strong. And digital cinema technology may now be sufficiently robust to be ready for mass market roll out80. Yet as of 2007, less than 5 percent of movie theaters around the world were digital81.

While planning for digital transition, theater owners should consider the need to invest in new skills. A digital movie theater is, for obvious reasons, more IT-centered than analog, and as migration accelerates, there may well be a scramble amongst competing firms to hire suitably skilled staff, including those with a good understanding of digital security. Companies should therefore make understanding the staffing requirements associated with digital a priority, and should start recruiting as soon as is practical.

Movie-theater owners may well need to work very closely together in order to start addressing new markets. Individual theaters, and even large chains, may lack the scale required to persuade sporting or music rights owners that big screen opportunity is substantial. But speaking with one voice, the world's 100,000 movie theaters82 may well be able make a persuasive case.

Time for music to get tangible again

Over the past 20 years the price of concert tickets has climbed steadily83. During the same period, however, the price of recorded music has fallen.

When the compact disc was first launched 26 years ago, it was initially priced at $30 in the United States84. In 2008, in the same market, newly released CDs on e-commerce sites will often be sold for under $15. Digital downloads of albums are likely to cost even less, priced just under $1285. Yet in 2008, dozens of artists and groups are likely to charge over $100 for their best seats. Several acts may gross over $100 million for their tours, following precedents set by a handful of artists and groups in 2006 and 200786.

Historically concert tours were designed to promote sales of albums. Now a single concert ticket can cost as much as, if not much more than, the act's entire CD back catalog.

Another trend, perhaps a corollary, to the declining price of the compact disc and the steadily dwindling revenues of the global recorded music business, has been the rise of the MP3 and the MP3 player.

The MP3 player has become particularly successful in recent years, selling well over 100 million units so far this decade87. However, its appeal may be greater than the average consumer's interest in digital music files. So while music fans have been happy to pay several hundred dollars for an MP3 player and a similar amount to see live music, the same fans have tended to spend relatively little – an average of some $20 – on purchasing digital downloads88. Indeed so far sales of digital music do not appear to be making up for the decline in traditional music sales89. This is in spite of the fact that the price of a new release album sold in the form of a digital download is generally lower than for the equivalent compact disc.

The reluctance to spend money on digital downloads may be because it is hard for consumers to value intangible products. Furthermore, customers have become used to the concept of free digital content from their experience of the Internet, which offers an array of free media, from news to music clips. The sole evidence of purchasing an MP3 may be just a solitary line of data on an MP3 player describing a song's vital statistics. In 2008 it is likely to remain as hard as ever to gift wrap an MP3 track.

It may be far easier for customers to value a song, and to pay more money for it, if it were physically 'wrapped', with the bigger the packaging, the greater the perceived value. Readers over the age of 30 will likely still remember the fragile but visually appealing music album. The benefit of cover art was, and still could be, that fans might be swayed to purchase a single or an album by the way it looks, as much as by how it sounds. In some cases the cover art could be more memorable, and some might argue, of more value to the customer, than the music contained inside.

2008 could be the year, however, in which music becomes tangible again. One trend that could allow this is the steadily falling price of digital memory, which could enable the commoditization of the MP3 player. The industry could evolve from offering digital downloads for transfer to a device, to selling pre-recorded MP3 players, containing a single album or even an artist's entire back catalog. Having a single MP3 player dedicated to an album or an artist would enable collectors to engage a human trait – to collect and display their purchases.

The falling price of digital memory, in its various formats, such as SD and Compact Flash, could also be used to sell pre-recorded music. The more substantial the packaging used to house the memory card, the more customers may be prepared to pay for the music.

In 2007, one band offered a digital download of an album for any price – ranging from free upward. In the first month, three of every five downloaders opted to pay nothing90. While the band left it up to fans to determine what to pay for the intangible download, it felt able to charge over $80 for the physical version of the album, available as a boxed set comprising vinyl records, CDs, lyric booklets and a hard-cover case91.

Bottom line

Putting a value on something abstract has proven difficult in many markets. Take away the physical elements of books, videos and music, and all too often, what is left is perceived to be less valuable than the original. Downloaded versions of books92, video93 and music94 often cost less than their traditional equivalents.

For the music industry, one solution to this problem may lie with packaging. The industry should look at various ways of making music more 'physical', while still providing the flexibility of digital downloads.

Another option would be to bundle a physical copy with the digital download. The digital version could be uploaded immediately onto an MP3 player, saving the trouble of copying it. The physical version, destined for the display cabinet, would most likely be a compact disc. But it could possibly be a memory card, which could be used in a range of players, from a mobile phone to a digital radio, or, for sales of entire back catalogs, a dedicated MP3 player, sold in a commemorative box95.

In some cases, the physical format could be vinyl. While this may not appeal to younger music fans, it may nurture nostalgia among older, wealthier music fans – the same group that would consider paying over $100 per ticket to see their favorite childhood singer or group perform at a comeback tour. One band has bundled a book along with one recent commemorative release96. Another included a cassette tape97. If memory-card releases grow in popularity, packaging should be of the same dimensions as a CD or DVD to ensure that the product remains tangible.

Physical representations do not necessarily have to be in the form of recorded music. Licensing lyrics to adorn a pair of jeans, for example, is just one of many ways that the value of music can be realized in a physical format98.

Overall, the industry should ensure it manages the balance between exploiting emerging music formats and reinvigorating existing ones. For example the capability to purchase music on the move has been facilitated by the launch of high-speed mobile networks, but demand so far has been relatively weak, except in a few markets99. While technological advance should always be monitored, any new channels to market should factor in the conservatism of some customers, as well as the age-old desire of people to display their possessions, and most of all the highly visual nature of music.

Stop the presses! Online is moving (slowly) to the front page

Traditional media outlets have been loath to admit that they have based a news story on material that originated online. Blogs (written by authentic amateurs, not renamed columnists), podcasts, wikis – any user-generated content at all – have simply not been considered legitimate, credible sources of information.

But during 2008, it may become increasingly commonplace for traditional media not only to acknowledge the existence of the online world, but also to concede, albeit only occasionally, that those stories have been 'broken' by citizen journalists.

During the year, traditional media companies are likely to move towards a more active and dynamic online presence, as they begin to phase out the historical, now seemingly arbitrary barriers between analog and digital versions100.

As a result, it seems likely that traditional media companies will reach ever further into the online world and start sourcing more content from the Web, using the online world as a pool of potential talent, and opening up their own brands to more user-generated input, feedback, or even editing and creation.

The first evidence of this shift emerged when traditional media companies started hiring content creators and news staff who were programmers first and journalists second101. As this trend continues, new online features like crime mashups, interactive maps and searchable databases are expected to become important differentiating features for websites. Traditional reporters are unlikely to have the skill sets to create and maintain this kind of content.

As existing media companies lose their disdain – and fear – of the online world, they are likely to start to see the appeal of using the Web as a 'farm team' of up-and-coming talent.

The traditional path of creating a columnist is a major investment that may not always pay off. Hiring journalism school graduates, training them for years, having them cover a beat, and then giving them a column is not a guaranteed route to attracting a healthy readership. On the other hand, there is a growing number of bloggers and podcasters who have already attracted a loyal audience of hundreds of thousands of people, with whom they have an ongoing comment-based dialog. A columnist with a devoted following would be an asset to most traditional media outlets, and hiring someone from the Web is likely to be much less expensive than poaching successful staff from a competitor.

Large media companies have already hired writers hitherto best known for their blogs as columnists102. In 2008 and beyond, more pure-play bloggers are likely to graduate to traditional media companies.

A more wide-reaching transition may be more difficult: citizen journalism, a semi-moderated wiki process, via which amateur contributors submit stories that are edited by professional staff, is unlikely to gain much favor among professionals. While citizen journalism will likely continue to grow in 2008, the financial viability and size of audience will probably fail to achieve earlier predictions of success. Some existing media companies believe that the corollary to publishing 'all the news that's fit to print' is that if they don't publish it, it's not news. At one time this attitude was a necessary defense against shoddy journalism, but younger readers may have a more democratic or comprehensive view of what constitutes news103.

The largest and arguably most successful wiki newspaper is South Korea's OhmyNews. It is a hybrid operation, with around 65 full-time journalists and 40,000 citizen contributors. It has recently introduced an online course for wannabe citizen journalists. OhmyNews was widely credited with having influenced the 2002 South Korean presidential election and has both Korean and English editions104.

Media institutions often have hundreds of years of experience, enormous credibility and broad international presence. As such, the emergence of a growing band of amateurs and enthusiasts is unlikely to cause their status to crumble, in 2008 or perhaps ever. But 2008 may well see amateurs and semi-professionals add eyes and ears to the traditional media to help deliver an enriched, global perspective.

Bottom line

Traditional media companies are fighting market-share erosion and pressure on advertisers' spending. By looking at the online world as a source of content and talent, they may be able to increase their relevance, especially for younger consumers and readers. They may also be able to reduce their content production and acquisition costs. But is cost-reduction the only driver? Quality and consistency of content are the most important competitive levers any media company has, and opening up the gates to the masses threatens that advantage. On the other hand, as Wikipedia has shown, user-generated and -edited content has the capability of significantly competing against established brands with reputations for quality.

Media companies will need to be flexible. Although the online and programming communities are potentially fertile sources of talent and skills, companies may have to raise their pay levels significantly to attract the right kind of talent. Computer programmers traditionally get paid more than equally experienced journalists. Someone happy to write blogs while sitting at home in a bathrobe may not be comfortable in the corporate environment of a traditional news organization.

There are also substantial challenges to permitting user interaction, editing or even comment on published news. Unedited content may result in a lawsuit for libel. In 2007, one prominent citizen journalism site was sued, not for authoring an allegedly libelous comment, but merely for failing to remove it105.

Media companies are still likely to have to strike a balance between being sufficiently open and closed with their readers. They are not likely to want the aphorism "publish and be damned" to take on an altogether new connotation and dimension in 2008.

Offshoring gets bigger and more creative in the media sector

Offshoring, the use of labor in countries where it costs less, is most commonly associated with the financial services and technology sectors. Historically, the media industry appears to have only dabbled in offshoring, with the finance and IT functions typically the first to be moved overseas.

In 2007, one of the first media offshoring contracts was agreed, worth in excess of $1 billion. It covered 'end-to-end' full services that included IT, operations, finance and accounting, HR and research106. Growing faith in offshoring reflects both consistent quality of supply as well as an increasing ability for western companies and offshored teams to work together. As a result, 2008 may see further significant deals of this scale.

The movie industry has also gone offshore, by using lower cost, lower tax countries to shoot their films107. For Hollywood studios, filming in Canada can reduce total production costs by 25 percent108. However the principal creative tasks, from script writing to set design, are rarely undertaken offshore.

Studios also use post-production specialists in emerging markets to undertake a range of functions, from editing to special effects109. Animated films and television series have also used offshore teams around the world. Offshoring can reduce wage costs by up to two-thirds with little impact on quality110. But again, offshored teams tend largely to work under instruction from staff onshore who retain control of the creative process.

Newspapers and magazines have also used offshoring selectively, focusing on more administrative tasks, such as finance and IT. Use of offshore labor for creative tasks has been limited, for example, to the production of advertisements111. Attempts to offshore editorial staff have tended to face major challenges, particularly when overseas journalists have to make judgment calls on what is newsworthy, on the other side of the world112.

However, 2008 could see growth in the use of offshored staff to undertake creative tasks, as well as functional roles. While cost may remain the key motivation for offshoring, there may be the start of a fundamental change in how offshoring is perceived by media companies. It may increasingly be seen as a means of adding value, not just cutting cost.

The movie industry may increasingly look abroad for the creation as well as the production of films113. One incentive for this has been the growing success of non-Hollywood movies, which major studios might look to tap into. In 2005 there were just four non-US films on Variety's top 100 grossers chart. In 2006, there were 10. A movie conceived and made abroad may gross less than a Hollywood blockbuster, but it may also cost far less. "Kung Fu Hustle", a 2004 production, grossed $101 million worldwide, but cost just $10 million to make114.

The use of offshored teams to undertake more creative tasks may also be catalyzed by the growth in offshoring specialists setting up marketing and production locations onshore. Prime Focus, a postproduction company headquartered in India, purchased VTR, a London-based digital post-production house. Prime Focus's objective in acquiring VTR was to be able to pitch for higher-end jobs by buying in expertise, therefore differentiating on quality and creativity, not just price115.

Confidence in offshoring may also be boosted by a growth in specialist firms, focused on different parts of the value chain. As of the beginning of 2008, there were video games specialists in Romania, animation specialists in South Korea and advertising production experts in India116.

Bottom line

The media sector should regard offshoring as a strategic imperative that would best be evaluated proactively. Offshoring has the potential to offer many benefits, but these can only be realized with good execution.

Companies need to consider how offshoring may make management decisions more complex. For example, some processes may need to be redesigned and onshore staff retrained to be able to make full use of the advantages of offshoring. The strategic nature of offshoring often requires board-level sponsorship as well as a thorough, detailed explanation to every member of staff on why a company is offshoring. In addition, the largest offshoring projects may require external project management.

Offshoring should be considered as more than just access to lower cost labor. It should also be recognized as a means of access to new talent, offering a gateway to new markets, and allowing work to be distributed over several time zones.

However, offshoring should not be considered a panacea. It is one of the many options to lower costs and improve quality. Onshore approaches to reducing costs and raising quality standards should be evaluated in parallel with offshoring. And since the media industry trails other sectors in its use of offshoring, it can draw upon a wealth of experience and accumulated best practice.

If economic conditions in 2008 decline, many media companies may rush into offshoring as a means of cutting costs. The more forward-thinking media companies should already have identified which processes to offshore, which suppliers to use and where to base them by the time the crowds arrive.

Converging technology and media: don't forget the business plan!

The media sector has particularly benefited from the transformational potential of technology in recent years.

Technology, by delivering digitization, has enabled a string of new media products that have had mass-market appeal, such as the MP3 download, the ringtone and the blog. It has also enabled the creation of whole new categories, such as online advertising, the MMORPG and social networks. Technology has also enabled copious amounts of reinvention. The accelerometer, which allows a user's movement to be tracked, has been incorporated into two manufacturers' video games controllers. Nanotechnology has enabled the miniature hard disks that make the portable media player possible, earning its pioneers a Nobel Prize in the process117.

In 2008 the convergence of media and technology is likely to spawn a wide range of new products, services and even companies. In some cases convergence may be based on mergers and acquisitions between companies with complementary media properties and technology. Many of these initiatives should in time prove to be commercially successful, but some could fail for reasons that could have been avoided.

One common cause of failure may be that companies put too much emphasis on reaching the limits of what is technically possible, instead of evaluating commercial realities. For example, there are many ways of delivering a television signal, but not all of them may be economically viable. Delivering broadcast television via a fixedline telecommunications network is technically feasible, but some analysts have questioned whether this can provide a return on investment in all markets118. Delivering broadcast television to a mobile telephone, while technically possible, may not make financial sense for all players119.

There could also be legal obstacles. For example, a company may develop a brand new service only to discover that it faces some legal challenges in accessing its target audience120. Requiring customers to be within a specific age group to use a service may be illegal in some markets on the grounds of age discrimination121. Using peer-to-peer technology as a means of distributing content to customers may be problematic if host networks – their employers or their university – have banned this distribution method122.

The convergence of technology and media could cause some products and services to fall in value. A music album in digital download format typically costs less than its physical equivalent. A newspaper's Web version is increasingly offered free, funded by advertising, while the paper version is paid for123.

Some companies, while enjoying great success in building a user base, may find it far harder to monetize this base. Social networks, some of which have attracted tens of millions of customers, may find it challenging to convince users to accept advertising at a later stage124.

Bottom line

The convergence of media and technology can be very powerful. But for the combination of media and technology to be worth more than the sum of its parts, a number of factors have to be aligned. The technology needs to be robust and easy to use, and the service has to comply with laws and regulations in every market where it is offered. Where digitization of analog content has occurred, that content should be more valuable as a result, and there needs to be a realistic plan for generating revenues from end-users. A lack of focus in any one of these areas could prevent the new product or service from attaining its full potential.

Any company using convergence to diversify into another sector, whether it is a technology company entering the media sector, or a telecommunications company looking to generate revenues from media, expertise in the new field is vital. One of the best examples of convergence, iMode in Japan, was based on deep collaboration between telecommunications, technology and media companies.

Diversification via convergence should not distract a company from its core business. A television company with a solid business in broadcast and production, but which is considering alternative forms of distribution, such as content on demand, should execute with rigorous attention to detail. It should ensure that management's focus on diversification, the sole aim of which may be to increase sales by say just 10 percent, does not jeopardize the mainstream broadcast and production business which generates the majority of sales.

Companies should also be careful not be to be misled by numbers. A large user base is great if it is actively contributing to revenues. Otherwise, the cost of maintaining such a base may rapidly become a liability. Furthermore, companies should be diligent in comparing like with like. They should ensure that an advertising-funded unique user is not necessarily considered equivalent to a magazine's subscriber. Deeper analysis may reveal a wholly different picture.

Glossary of technical terms

CD Compact Disc
CRT Cathode Ray Tube
DVD Digital Versatile Disc
DVR Digital Video Recorder
HD High Definition
IPTV Internet Protocol Television
ISP Internet Service Provider
MMORPG Massive Multiplayer Online Role-play Games
OEL Organic Electro Luminescence
SD Secure Digital
TMT Technology, Media & Telecommunications
VoD Video-on-Demand

Recent thought leadership

Convergence Conversations
Digital Dilemmas
The elements of value network appliances – Part 1: Strategies for building alliance partnerships
Global Trends in Venture Capital 2007 Survey
Growing their own talent – 2007 Global Survey of CEOs in the Deloitte Technology Fast 500
Treading water – 2007 TMT Global Security Survey
Value, protect, exploit: How managing intellectual property can build and sustain competitive advantage

About TMT

The Deloitte Touche Tohmatsu (DTT) Technology, Media & Telecommunications (TMT) Industry Group consists of the TMT practices organized in the various member firms of DTT and includes more than 6,000 member firm partners, directors and senior managers supported by thousands of other professionals dedicated to helping their clients evaluate complex issues, develop fresh approaches to problems and implement practical solutions. There are dedicated TMT member firm practices in 45 countries and centers of excellence in the Americas, EMEA and Asia Pacific. DTT's member firms serve nearly 90 percent of the TMT companies in the Fortune Global 500. Clients of Deloitte's member firms' TMT practices include some of the world's top software companies, computer manufacturers, wireless operators, satellite broadcasters, advertising agencies and semiconductor foundries – as well as leaders in publishing, telecommunications and peripheral equipment manufacturing.

Footnotes

67. Technology boosts movie industry box office sales, PC Pro, 7 March 2007.

68. Ibid.

69. Record film year at US box office, BBC News, 31 December 2002.

70. Budget DVD player, Sunday Times, 6 May 2007.

71. Winners take all in Rockonomics, BBC News, 20 April 2006.

72. Annual review of football finance, Deloitte & Touche LLP (United Kingdom), June 2007.

73. UK pioneers digital film network, BBC News, 26 February 2005.

74. Reinventing the movies, Asia Image, January 2001.

75. See: Digital Cinema, http://www.artsalliancemedia.com/cinema/.

76. Hot Fuzz, Harry and Bean boost the British film industry, UK Film Council, 13 November 2007.

77. For example, see: http://www.thisislondon.co.uk/showbiz/article-23397805-details/Coming+to+a+screen+near+you...Genesis+in+concert/article.do

78. New York's Metropolitan Opera Theater's second series of live high-definition transmission comprises eight performances for its 2007-2008 season. For more information, see: http://www.metoperafamily.org/metopera/broadcast/hd_events.aspx

79. MPA Snapshot Report – 2006 international theatrical market, Motion Picture Association, April 2007.

80. For example see: $8 billion Digital Cinema Market Beckons: Half of All Screens Will Be Digital by 2013, Dodona Research, 2007; The Curtain Rises on Sony's New SXRD 4k Digital Cinema Projector, PR Newswire, 24 October 2006; Digital Cinema Server Ushers in Next Generation of Movie Technology Worldwide, Microsoft, August 2007; Carmike Cinemas going digital, Dalton Daily Citizen, 16 December 2006.

81. $8 billion Digital Cinema Market Beckons: Half of All Screens Will Be Digital by 2013, Dodona Research, 2007.

82. In Camera, Kodak, July 2007.

83. Winners take all in Rockonomics, BBC News, 20 April 2006.

84. History of the compact disc, SiliconUser, 3 July 2007.

85. Recorded music and music publishing, Enders Analysis, March 2007.

86. The Rolling Stones grossed $437 million; U2 grossed $333 million; Madonna grossed $194 million; The Police grossed $171 million; Rolling Stones stage richest ever tour, New Musical Express, 25 November 2006; Madonna sets female tour record, USA Today, 20 September 2006; The Police claim highest grossing tour, Music-news.com, 16 November 2007.

87. One brand of MP3 player alone, Apple's iPod range, sold its 100-millionth unit in 2007: iPod sales top 100 million, NME, 10 April 2007.

88. Recorded music and music publishing, Enders Analysis, March 2007.

89. Ibid.

90. For Radiohead fans, does "free" + "download" = "freeload"? Comscore, 5 November 2007.

91. For more information, see: http://www.inrainbows.com/Store/index3.htm

92. The Future of Reading, Newsweek, 26 November 2007.

93. Target wants cheaper DVDs, "level playing field" with online movie sellers, Ars Technica, 9 October 2006.

94. Recorded music and music publishing, Enders Analysis, March 2007.

95. One band, Hadouken, recently released an album on memory stick only. For more information, see: http://hadouken.trinitystreetdirect.com/store/page4.asp? sup type=1&t=1 &sub_type=3&prod_id=30&col=30

96. For more information, see: http://joshuatree.u2.com/index.php?module=home and http://www.u2.com/highlights/?hid=408

97. One artist, Jamie T, included a cassette tape of a live concert as part of a bundled sale. For more information on the artist, see: http://www.jamie-t.com/.

98. See: Lyric jeans and EMI Music Publishing join forces for luxury apparel line, EMI, 10 August 2006.

99. The Mobile Audio Media Study, Artbitron/Telephia, Quarter 1 2007.

100. Now, everyone is entitled to our opinions, New York Times, 19 September 2007: http://www.nytimes.com/marketing/ts/.

101. Wall Street Journal to Make Web Site Free, Murdoch says, cyberjournalist.net, 14 November 2007: http://www.cyberjournalist.net/wall-st-journal-to-make-web-site-free-murdoch-says/.

102. Web Focus Leads Newspapers to Hire Programmers for Editorial Staff, PBS – Mediashift, 7 March 2007: http://www.pbs.org/mediashift/2007/03/digging_deeperthe_geek_in_the_1.html Time.com Hires Former Wonkette Blogger, Cyberjournalist.net, 26 July 2006: http://www.cyberjournalist.net/news/003643.php Andrew Sullivan to blog for Time.com, Cyberjournalist.net, 22 November 2005: http://www.cyberjournalist.net/news/003040.php

103. Young America's News Source: Jon Stewart, CNN.com, 2 March 2004: http://www.cnn.com/2004/SHOWBIZ/TV/03/02/apontv.stewarts.stature.ap/.

104. OhmyNews' Oh My Biz Problem, BusinessWeek, 1 November 2006: http://www.businessweek.com/globalbiz/content/nov2006/gb20061101_539412.htm

105. Libel Lawsuit Filed Against iBrattleboro Founders Grotke & LePage, Citizen Media Law Project, 28 November 2007: http://www.citmedialaw.org/blog/2007/libel-lawsuit-filed-against-ibrattleboro-founders-grotke-lepage

106. Nielsen and Tata Consultancy Services reach agreement in principle for IT and operations support services worldwide, PR News Wire, 18 October 2007.

107. For example, see: Film Tax Relief, Scottish Screen: http://www.scottishscreen.com/content/sub_page.php?sub_id=95&page_id=19 r Film New Zealand: http://www.filmnz.com/production-guide/taxation.html

108. The Hollowing out of Hollywood, Yale Global, 30 April 2004.

109. Welcome to the future, where India adds a film's final touch, The Times, 14 May 2007.

110. 'The Simpsons' made in Korea, China Daily, 5 March 2005.

111. For more information, see: http://www.expresskcs.com/ which provides ad make up services for over 40 publications in North America and Europe.

112. Outsourcing hits a new class of workers: Journalists, International Herald Tribune, 20 November 2006.

113. Sony commits studio to 'foreign', Variety, 7 September 2007.

114. Ibid.

115. India shoots at UK Entertainment Inc, The Economic Times, 31 March 2007.

116. Romanians lighten up Harry Potter game, Reuters, 31 July 2007; 'The Simpsons' made in Korea, China Daily, 5 March 2005.

117. Nanotechnology gives sensitive read-out heads for compact hard disks, Royal Swedish Academy of Sciences, 9 October 2007.

118. Forrester report warns western Europe telcos of IPTV-generated losses, Broadcast Engineering, 26 June 2006; Interview with Mike Harris, Gartner, Convergence Conversations, Deloitte Touche Tohmatsu, November 2006.

119. Europeans are not interested in mobile TV, Softpedia, 26 September 2007.

120. Interview with David Kerr, Bird & Bird, Digital Dilemmas, Deloitte Touche Tohmatsu, November 2007.

121. Free UK mobile service runs straight into connectivity problems, Wireless Federation, 26 September 2007.

122. For example see policy for Trinity College Cambridge, which specifically prohibits "peer-topeer TV on demand applications" http://www.trin.cam.ac.uk/index.php?pageid=509 or Leeds University, which has prohibited a long list of peer-to-peer applications: http://campus.leeds.ac.uk/isms/policies/related/residence_network_conditions.html UK universities' approach is similar to that in the United States, e.g. The University of Chicago, which has a list of banned peer-to-peer applications http://security.uchicago.edu/guidelines/peer-to-peer/.

123. Now, everyone is entitled to our opinions, New York Times, 19 September 2007: http://www.nytimes.com/marketing/ts/; Wall Street Journal to make website free, Murdoch says, cyberjournalist.net, 14 November 2007: http://www.cyberjournalist.net/wall-st-journal-to-make-web-site-free-murdoch-says/.

124. See: Social networks: popular, yes, but how to monetize them, ceoworld.biz, 22 November 2007; Of social nets and business models, GigaOm, 19 June 2006; Ziki, this week's social network; TechCrunch, 3 April 2006; The MySpace generation, BusinessWeek, 12 December 2005; No business in social networking, eWeek, 4 May 2004.

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