Chapter 9 The impact of next-generation video on traditional media companies and industries
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How will the various types of established companies in the media sector be affected by the change to 3rd generation online video? This chapter analyzes this question. Traditional TV organizations - over-the-air broadcasters, channel providers, and cable/satellite channel distributors and aggregators - will continue to decline in their capacity. Their parent companies will transition to online distribution, too, but with neither the audience sizes nor the advertising base they used to have. Nor are they likely to be technological or content innovation leaders. However, they have incumbency advantages of brand, size, and experience. Content producers will benefit from global demand, and premium next-generation products require significant resources. Creatives around the world will find a new toolset for entirely new forms of expression. Advertising agencies will decline. Telecom companies will benefit for a substantial rise in communications traffic but face substantial costs of upgrade, especially for wireless to keep up with capacity requirements. Cable companies will be subject to contradictory forces, for their roles as distribution networks and as channel aggregators. And tech companies will drive the pace of the markets.

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