IBM Institute for Business Value study has published Navigating the Media Divide: Innovating and Enabling New Business Models a report which everyone involved in print media ought to read, newsagents especially.
While IBM makes an excellent case for change within newspaper publishers and other ‘old media’ companies, the case is equally timely and relevant for Australia’s 4,600 small business newsagents. Between 30% and 60% of our retail businesses relies on old media products. The report goes to the heart of the threats they face and how the publishers need to react to remain viable. The summary sets the report up well:
A new media world has arrived. Pioneered by teens and gadget-savvy professionals, it has quickly spread into virtually every consumer segment, and started to encroach on traditional media. The number of unique visitors to MySpace.com has now surpassed the 50 million mark – something akin to the number of U.S. households that tune into the Super Bowl.1 Every day, consumers around the world watch about 100 million videos on YouTube – putting that number in context, the top 15 British primetime television shows combined attract about 100 million viewers, as do the top 4 U.S. shows.2
The report has several recommendations but one speaks directly to newsagencies in my view: Refocus capital investment from traditional business to new models. What this means is changing the design of our stores, bring in new products and services and plan for a life less reliant on the products around which the newsagency channel was created. I see nothing to fear in such fundamental change. Yes it will be challenging. It will also allow us to take control of our businesses, probably for the first time since newsagencies began.
Kudos to IBM for creating this report. While they have commercial reasons, down here at the small business level the report can be an excellent catalyst for change as it’s a view, in part, of our world without the bias of a supplier or a potential supplier.
The report concludes with, in part:
The current clash between traditional and new media is reaching a fevered pitch. Industry incumbents are responding – but perhaps not quickly or completely enough.
My question for newsagents is: Are we responding to the changes we see?
You can download the Executive Summary or the full report.