Comparative Media Policy, Regulation and Governance in Europe – Chapter 3 Chapter 3: Media Economics and Transformation in a Digital Europe 1st Edition – (PDF/EPUB Version)

This chapter elaborates on the wave of digital change for legacy media organisations, and discusses the challenges the dominant media business logic faces from digital intermediaries. The impact of digital technology in media and communications industries, not only in Europe but all over the world, is growing and challenges the legacy business model. Declining advertising revenues and intense competition from pure players is putting pressure on the legacy business models. Media organisations therefore need to undergo a transformation process and put digital technology central in their daily business operations. However, it would be wrong to predict the collapse of the traditional media business: The impact of digital technology on the media industries comes as an evolution, not a revolution. This implies that media organisations have the time to gradually adapt their business model and need to learn how to progress with their digital activities without cannibalizing their still profitable analogue operations.