The reading for this week discussed the opportunities of future growth for Entertainment and Media Companies.  The report written by media experts Chris Lederer and Megan Brownlow discuss the threats and opportunities in the media industry and have corolated statistics and data showing the current trends on a global scale.  They are positive about continual growth in this industry with statistics showing that E&M spending is growing more rapid than GDP in most countries.  The report makes the claim that there is a growing shift from publishing businesses to internet and video businesses.  With traditional media slowly in decline the shift is highly inevitable if companies want to continue making a profit.

The report also discusses how the youth are driving the change on how people consume media.  “Young people consume more media than older people and are more open to adopt digital changes.”  Older people are more likely to view media through traditional channels like television, radio and newspapers.  My father can’t even send a message on a smart phone.  Although in some countries some traditional forms of media are growing in popularity again like physical form of music in Norway and Italy.  Newspapers also remains a popular form of media consumption in Japan.

But the statistics show that media is being viewed on multiple platforms and companies are offering bundles for these type of services.  The rise of subscription has grown highly for services like Netflix and Stan.  These streaming services can be viewed on multiple devices including smart phones, tablets and computers.  In Australia the price has considerably dropped for pay tv services such as Foxtel and Optus.  The new competition from these streaming services has become problematic for Foxtel.  These streaming services are free from advertisments and appeal more to consumers that like to watch tv shows with no interruption.  Foxtel have to be careful now to not frighten off their customers with too much advertising.