Chapter 9

Question 1

What are some major trends in the consumption of media and online content?

Answer 1

• Average american adult spend 4,300 hours per year consuming various media (most is online)
• Internet users multitask and hence consume more media of all types than non-Internet users
• print media revenue 34%, Internet media 8.7%

Question 2

What does DRM stand for?

Answer 2

Digital Rights Management and refers to protecting digital content from reproduction without permission (Walled gardens)

Question 3

What are the three major revenue models for digital content?

Answer 3

1. Subscription
2. A la carte (customer pays for what it use)
3. Advertising-supported (free and freemium)

Question 4

Concept of media convergence has three dimensions, which?

Answer 4

1. Technological - development of hybrid devices combining the functionality of two or more media platforms, books and television into a single device
2. Content
3. Industry

Question 5

What are the key factors affecting online newspapers?

Answer 5

1. Audience size and growth

2. Revenue models and results - digital ad revenues are not sufficient to cover losses in print advertising

Question 6

What are the key factors affecting online magazines?

Answer 6

1. Online audience and growth - almost a third of the Internet population now reading magazines online
2. Magazine migration - Web sites or apps offers users online subscriptions

Question 7

What are the key factors affecting e-books and online book publishing?

Answer 7

1. Audience size and growth - e-book sales growth has leveled off following an explosive growth period
2. Challenges - control over pricing and the continued evolution of the e-book model
3. Competing business models - wholesale model and the agency model
4. Convergence - publishing industry is making steady progress toward media convergence