The “unbundling” of content, the rise of online delivery

Media content is increasingly becoming “unbundled” from its physical distribution medium, such as CDs. This “disruptive” technology has led to different pricing models and lowered barriers to entry for content authors, creating a challenging business environment for publishers and media companies. Historically, information and entertainment content were captive to their physical distribution medium or distribution time. Given the technology of the past, consumers were forced to purchase and access content using the physical medium or schedule dictated by the content distributor. This resulted in “appointment-based” consumption. Today, this old model of consumption is vanishing, due to changes in three significant areas: 1) unit pricing, 2) on-demand access and 3) digital delivery. Businesses, particularly traditional media companies and publishers, face several key challenges in the face of this technological change.

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Filed under Business 2.0, Media Evolution, User generated content, When New Meets Old

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