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Instructors Manual: Chapter 10

Teaching Objectives
Identify the major trends in the consumption of media and online content.
Discuss the concept of media convergence and the challenges it faces.
Describe the five basic content revenue models.
Discuss the key challenges facing content producers and owners.
Explain the key factors affecting the online publishing industry.
Explain the key factors affecting the online entertainment industry.
Key Terms
technological convergence, p. 652
content convergence, p. 652
industry convergence, p. 654
net value, p. 657
digital rights management (DRM), p.660
Web-accessed e-book, p. 670
Web downloadable e-book, p. 670
dedicated e-book reader, p. 672
print-on-demand e-book, p. 672
sub-pixel display technologies, p. 676
digital rights management (DRM) software, p. 677
Brief Outline
The Wall Street Journal Online Discovers Web 2.0
10.1 Online Content
Content Audience and Market: Where are the Eyeballs and the Money?
Media Industry Structure
Media Convergence: Technology, Content and Industry Structure
Online Content Revenue Models and Business Processes
Key Challenges Facing Content Producers and Owners
10.2 The Online Publishing Industry
Online Newspapers
Insight on Business: DRM: Who Owns Your Files?
Books: The Evolution of E-Books
Insight on Society: The Future of Books
E-commerce in Action: CNET Networks
10.3 The Online Entertainment Industry
Online Entertainment Audience Size and Growth
Online Entertainment Industry Revenue Models
Insight on Technology: Hollywood Needs a New Script: Pass the Cash
Cow Please
10.4 Case Study: Google and YouTube Together: Can Google Monetize YouTube?
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10.5 Review
Key Concepts
Questions
Projects
Web Site Resources
Figures
Figure 10.1 Media Utilization, p. 646
Figure 10.2 Media Revenues by Channel, p. 647
Figure 10.3 Relative Size of the Content Market, Based on Per-Person Spending, p. 648
Figure 10.4 Paid Digital Music, TV, and Movie Content Revenues in the United States,
2005-2012, p. 649
Figure 10.5 Convergence and the Transformation of Content: Books, p. 654
Figure 10.6 Revenue and Content Characteristics, p. 659
Figure 10.7 Monthly Unique Visitors at Major Online Newspapers, p. 665
Figure 10.8 Interactive Features Offered by Newspaper Web Sites, p. 668
Figure 10.9 The Growth of E-Book Revenues 2003-2012, p. 673
Figure 10.10 The Five Major Players in the Entertainment Industry: Estimated
Revenues 2008, p. 687
Figure 10.11 Projected Growth in Online Entertainment, p. 10.11
Figure 10.12 User Role in Entertainment, p. 690
Figure 10.13 Entertainment Value Industry Value Chains, p. 693
Tables
Table 10.1 Trends in Online Content, 2008-2009, p. 645
Table 10.2 Top Ten U.S. Online Video Sites (July 2008), p. 650
Table 10.3 Media Titan Revenues, p. 651
Table 10.4 Online Content Revenue Models, p. 656
Table 10.5 Examples of the Growing Use of Mixed Revenue Models for Online Content,
p. 658
Table 10.6 Types of E-books, p. 671
Table 10.7 Example E-Book Industry Firms, p. 675
Table 10.8 Standards for E-Books, p. 678
Table 10.9 CNET Networks Consolidated Statements of Operations and Summary
Balance Sheet Data, 2005-2007, p. 684
Teaching Suggestions
This chapter summarizes the various businesses that are based on the delivery of online
content. The chapter begins with an overview of the overall size, growth, and structure of
the media industries in the United States, and then focuses on publishing and
entertainment.
The key point students should take away from this chapter is that the primary challenge
facing online content companies is how to achieve profitability when so much content on

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the Web is offered for free, especially when consumers have an expectation that content
should be free. In order to achieve profitability, content providers need to create highperceived value products that can be uniquely delivered over the Web. Content
companies will need to develop new types of content products, encourage new delivery
technologies, and agree on industry platform standards. This process of change will take
many years.
The Wall Street Journal Online case is a good way to begin the discussion about the
issues raised in this chapter. Some questions you might pose include: Why has the Wall
Street Journal Online succeeded in attracting paying subscribers while other newspapers
have failed? Why does Rupert Murdoch think it would make more sense to abandon this
successful business model and instead offer content for free?
Key Points
Americans are consuming more content than ever, about 3,800 hours each year, and this
is expected to approach 4,000 hours of media consumption by 2010. Currently the
Internet only accounts for a small portion of this time (about 215 hours a year), but it is
growing at the fastest rate. The online paid audience for general content was about $3.6
billion dollars in 2008.
Briefly, the online content market is the fastest growing market for content and holds the
greatest potential for content owners when compared to other distribution channels.
Today, there are two commercial models for delivering content: paid, and free with
advertiser support. Initially, most content on the Web was free. However, most of the
early companies pursuing the free model were not successful. Content owners than
shifted to a paid model. However, recently, free with advertiser support (particularly
sites that aggregate user-generated content such as You Tube) has made a resurgence, and
both models are viable.
Media convergence is an important factor in achieving profitable online content
businesses. Content companies will have to encourage the development of new
technologies such as online book reading technology and hybrid devices that customers
are willing to use for viewing new Web content. The process of creating content will have
to change so that content is created only once and can be played on many different
platforms. Lastly, content owning companies and media companies that control
broadband Internet distribution channels will have to either merge or enter into alliances
to ensure audience size and revenue streams.
There are five business models used by online content delivery companies: marketing,
advertising, pay-per-view, subscription, and mixed. In general, the advertising model has
recently begun to work exceptionally well for portals and solid niche sites. The
subscription model also works well for valuable, niche content. The marketing model
amounts to a channel cross subsidy and can sometimes be difficult for a business to
justify. The pay-per-view model requires extensive payment systems experience to handle
millions of micropayments. In the mixed model, some content is free but premium

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services are often available on a subscription or pay-per-view/download basis. Many

online content providers are adopting this model.
The Insight on Business case, DRM: Who Owns Your Files? provides a discussion of the
tradeoffs in the use of digital rights management software. On the one hand it prohibits a
variety of uses of legally downloadable music that one might expect. On the other hand,
it permits copyrights owners to control distribution and receive a return on their
investment. DRM has been so successful that more people download music from legal
sites than illegal sites; among adults, legally downloaded music is the norm. No one
expected this to happen. Contrary to many pundits, lawyers, and academic experts, the
success of DRM and the strengthening of the copyright regime did not cause innovation
to come to a standstill.
Online Publishing. The publishing industry is a $120 billion industry with extraordinary
potential to move toward new generations of online newspapers, books, and magazines.
However, achieving profitability has proved difficult. Online newspapers have generally
relied on the advertising business model but in general, this revenue model has not
proved sufficient to achieve stand-alone profitability. In order to move towards a
subscription model and increase revenues, newspapers will need to develop premium
niche content and move towards mobile news services.
Online e-books are still in the relatively early stages of development and are not yet a
major factor in book distribution. The primary e-book revenue model is pay-fordownload. A second model involves the licensing of entire digital libraries. Neither model
is definitively profitable as of yet, but the downloading and printing of e-books is rapidly
growing. To succeed, the book needs to be redesigned as a complete multimedia
experience, and the technology for reading books online needs improvement. Amazons
Kindle, as well as the Sony Reader, has received much recent media attention and may
heighten student interest in this topic. In addition, new digital rights management
technologies will be required to protect the intellectual property rights of e-book content
owners. A good way to interest the students in the discussion of e-books is to ask them to
think about ways a book they are currently reading could be enhanced through the use of
the Internet. The Insight on Society case, The Future of Books, is a good place to start this
conversation with the class.
Online Entertainment. In the near term future, you will be able to watch any television
show or movie when you want on your home Internet entertainment center. You will be
billed for this service either as a monthly service from your broadband Internet provider,
or you pay a la carte from the owner of the content, which could be studio owned content
portal. Television networks and Hollywood film studios are currently making available to
online audiences and iPod users, entire television series and full-length Hollywood
movies.
We are not yet at the point where the Internet will displace traditional cable TV systems
or broadcast television. Currently, the Internet does not have the capacity to handle the
millions of people in the television viewing audience on a typical evening in the United

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States. Broadband providers are also considering charging more to networks and studios,
which are consuming large chunks of the available bandwidth. In this sense, the pricing
model is not yet stable for mass-scale distribution over the Internet of television and
movie entertainment.
Case Study Questions
1. In your view, and experience on YouTube, will typical YouTube viewers accept
advertising while watching the videos?
Students will differ in their response to this question. Some may argue that YouTubes
popularity lies in large part because it is a quick and easy way to view videos without the
annoyance of advertising. Adding advertising that cannot be skipped may be too much for
a typical YouTube viewer to deal with. Others may say that because of YouTubes
massive selection and general ease of use, viewers will put up with a limited amount of
advertising. If there is a right answer, it is probably that the content available from
YouTube will dictate whether or not viewers accept advertising. If high-quality, original
content is available on YouTube, its much more likely that the typical YouTube viewer
will tolerate advertising while watching a video in order to view that video.
2. What responsibility does YouTube have in removing copyrighted material from its site?
YouTube claims it is in compliance with the Digital Millennium Copyright Act, which
requires owners of content to notify Web sites when their copyrights are infringed. Why is
this a good solution for YouTube but a poor solution for copyright owners?
YouTubes responsibility with regard to copyrighted material on its site is simply that it
must agree to remove this content when alerted of its existence. This is a good solution
for YouTube and a poor one for copyright owners because it shifts the burden of
constantly checking the site for copyright infringements from YouTube to the copyright
owners themselves. In other words, it minimizes the amount of work YouTube must do to
remain in compliance with the DMCA and creates work for copyright owners that are
determined not to allow infringements of their copyrights.
3. Assume you were a manufacturer of sporting goods, and wanted to use YouTube videos
as a marketing tool to establish your brand. What concerns would you have about using
YouTube?
One concern is that your advertising efforts may backfire if your videos are not received
well. The example of ESPNs Monday Night Football illustrates how an ad can generate a
negative buzz surrounding your product rather than the intended positive buzz. YouTube
does not control the comments people can make about videos, so you would run the risk
of allowing some users negative comments to influence how your video is viewed.
Also, you may inadvertently associate your video with less savory videos found on
YouTube. Brand advertisers do not want their marketing messages alongside

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controversial user-generated videos or content that has been lifted from TV, DVDs, or
soundtracks.
4. Google claims that users are 10 times more likely to click on its Flash animations at
the bottom of the video screen than a standard banner ad. Do you believe this response
rate is reasonable, and do you believe it could be sustained over the long term of, say,
five years?
Part of the reason the click-through rates of these Flash animations is so high is that it
allows the video to begin or continue playing, so Googles claim may be misleading.
Answers may vary about whether the rate is reasonable or sustainable, but it is likely that,
as with previous forms of advertising, rates will decline over time as newer forms of
advertising are developed and current forms become stale.
End of Chapter Questions
1. What are the three dimensions where the term convergence has been applied? What
does each of these areas of convergence entail?
The three dimensions where the term convergence has been applied are technology
platform, content design, and industry structure. Technology platform convergence refers
to the integration of previously separate platform functionalities into a singular digital
device. It refers to the development of hybrid devices that can combine the functionality
of many different existing media. Content convergence actually includes three
dimensions: design, production, and distribution. Content design convergence has
occurred when the design becomes measurably different due to the new skills that have
been learned for fully exploiting the new technological capabilities. Content production
convergence drives content design convergence as new tools are developed for
economically producing content for delivery to multiple platforms. Content distribution
convergence occurs when the distributors and consumers have the new devices needed to
receive, store, and experience the product. Industry structure convergence is the merger
of various enterprises into powerful synergistic combinations that can cross-market
content on many different platforms and create works that use multiple platforms.
2. Why has media industry convergence not occurred as rapidly as predicted? What are
the five basic revenue models for online content and what is their major challenge? What
will have to be done in order to overcome this obstacle to profitability?
Media industry convergence has most likely not been quickly achieved because
consumers still prefer traditional media (i.e., books, film, video, CDs, or even newspapers
and magazines) and because the technology is not yet quite ready to distribute this
content effectively and conveniently. It has also not occurred because the content creators
(artists, writers, and producers) do not yet know what features consumers will be willing
to pay for, and they are still creating content for each of the separate media types. Finally,

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it has not occurred because a profitable business model has not emerged to transform the
media into a new experience.
The five basic revenue models for online content are: marketing, advertising, pay-perview, subscription, and mixed. The major challenge for the entire content industry is that
most content on the Web is free. Most Web users expect it to be free and have expressed
an unwillingness to pay for it. In order to overcome this obstacle to profitability, the value
proposition that these firms offer to consumers will have to be enhanced by offering more
highly valued and focused. Deep information and content will have to be in a more
convenient form.
3. What is the pay-per-view revenue model, what type of content is it suitable for and
when is it expected to be successful?
The pay-per-view revenue model is based upon charging users for each viewing of
premium content (videos, books, archived newspaper articles or consulting reports). This
model is suitable for targeted audiences who are looking for deep, rich, niche content.
Pay-per-view is expected to be a more prevalent and successful business model when the
bandwidth capability to view sporting events, feature films, and other video content is
perfected and becomes more widespread.
4. What four things must content provider firms do in order to generate meaningful
revenues?
In order to generate meaningful revenues, content provider firms must target a focused
audience and provide specialized content for which they are the sole source monopoly.
Firms must also cultivate high-perceived net value in consumers so that they believe
there is value in obtaining the information instantaneously on the Web. This net value
may be derived from the instant availability of the content, the fact that large historical
archives can be searched, and/or because the online material can easily be moved into
other documents.
5. What are the technological challenges facing content producers and owners?
In the past, technology issues (including low bandwidth, poor and unstable operating
systems, low-bandwidth mobile networks, and poor digital production environments)
were major inhibiting factors in the growth of online content. Today, this is no longer
true, and the technology platforms to deliver acceptable online content are now available.
The only exception is lack of bandwidth for high definition full screen video, full-screen
standard quality television, and CD-quality music (as opposed to MP3 quality).
6. Identify and explain the four other challenges facing content producers and owners.
The other challenges facing content producers and owners are cost, consumer attitudes,
cannibalization of existing distribution channels, and rights management. Cost challenges

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include the fact that Internet distribution is far more costly than was originally anticipated
and that there are substantial costs faced by media companies for migrating, repackaging,
and redesigning content for online delivery. Consumer attitudes are perhaps the key
challenge facing content providers as consumers have strongly resisted paying for Web
content. Cannibalization of existing distribution channels is another challenge traditional
media companies must confront. Media companies are often tempted to strike alliances
with successful portals or redistributors. The risk is that the media firms brand name will
become diluted or displaced by the portal or aggregators brand name. Furthermore, any
revenues generated will have to be shared with the intermediary.
Content producers must also be very careful about pricing and value when redesigning
content for the Web. If the price is set too low, higher-priced and profitable distribution
channels could be choked off. Rights management challenges include the ability to
protect truly high-quality content from being stolen, duplicated, and distributed for free
and the issue of royalties paid to artists and writers. The uncertainties of content
protection are clearly one of the reasons why more high-quality content is not available
online. Another reason is the conflict currently being waged between authors and
publishers over what a fair royalty scale is for online content, given that the production
and distribution costs for each unit of work are substantially reduced.
7. How has the Internet impacted the content that newspapers can offer?
Four significant content changes have occurred in the newspaper industry due to the
Internet platform. Content has expanded to include premium archived content, finegrained searching is now available, there is more reach and depth of content, and news
can now be delivered in a timely manner without the restrictions of a set printing
schedule. The timeliness aspect is perhaps the most significant change because instant
updates of breaking news stories are now possible, allowing newspapers to compete
directly with radio and television.
8. What changes have occurred for newspapers in the classified ads department?
New entrepreneurial firms have developed online classified ads for jobs, automobiles,
and real estate, while other startups have concentrated on specialized areas such as
computers, cameras, and other hobbyist topics. These new firms did not change online
content; they greatly expanded the reach and depth of the content and made it available to
national and international audiences. These new ventures challenged the newspaper
industry; others such as Craigslist, Autobytel, Monster, and CNET have drained some of
their readership and put a dent in local newspaper classified revenues.
9. What are the key challenges facing the online newspaper industry?
In the next five years, the newspaper industry faces significant challenges and
opportunities as the online audience grows in both numbers and sophistication. New
technology challenges and costs include developing wireless mobile delivery platforms
and micropayment systems to provide a low cost mechanism for selling single articles.

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Consumer attitudes have remained intransigent on the issue of paying for content. Some
online newspapers have experienced a cannibalization of their main distribution channel.
However, online newspapers are slowly learning to add value to their content by
providing additional services, content, and depth. Another main challenge is digital
leakage that occurs when a paid for and downloaded article is redistributed via e-mail or
posted to a Web site where millions of others can view it for free. Current digital rights
management software does not conveniently permit newspapers to charge each additional
reader of a redistributed article. The DMCA does provide some protection by making it
illegal for ISPs or their Web servers to store and distribute pirated copies of copyrighted
works.
10. What are the advantages and disadvantages of e-book content?
E-books have advantages over published books in that instant downloading can reduce
transaction costs; peoples accessibility to entire libraries will be dramatically increased;
and existing text will be searchable and easily integrated with new text via cutting and
pasting. They will also permit modularization down to the sentence and word level. This
can be much more easily updated or changed, resulting in lower production and
distribution costs and a longer lasting work. This should also increase opportunities for
writers to publish, increase the availability of out-of-print works, increase the value of
book archives, and reduce the cost of library functions in the society, further
democratizing access to books. Unfortunately, the disadvantages are so far outweighing
even this impressive list of advantages. The required expensive and complex electronic
devices are not by and large portable. The reduced print quality onscreen makes them
difficult to read; and there are multiple competing standards, uncertain business models,
and issues of copyright and author royalties.
11. How has the Internet changed the packaging, distribution, marketing, and sale of
traditional music tracks?
Even though the music itself is nearly the same, huge online digital music archives now
exist from which users can mix and match to create their own personalized content. As
with print media, users can now easily search these collections and have access to timely
content. Free music services change the content of the music experience by creating a
worldwide community of music aficionados, and the traditional music industry has now
created subscription services with their own massive archives of downloadable music.
The Internet transforms the consumer experience by providing premium archives,
efficient search, timeliness, and enormous reach and depth of content.
12. What are the factors that make non-traditional distinctly Web entertainment sites so
popular with users?
The factors that emerge as the common themes among popular, non-traditional Web
entertainment sites are that they are interactive, communicative, and under the users
control. For example, one main reason for the popularity of downloadable music services
is that they enable users to become their own packagers and distributors of music. This is

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the unique feature of non-traditional online entertainment as compared to traditional

entertainment; it offers users high levels of control over both program content and
program focus.
13. What would complete content convergence in the entertainment industry look like?
Has it occurred?
Complete content convergence in the entertainment industry would entail purely digital
creation, production, and distribution of content with no use of analog devices or physical
products and distribution channels. This has not yet occurred. Music is the closest to
being transformed today, the traditional CD album containing 15 songs is becoming a
dinosaur, as consumers become more and more familiar with downloading single songs a
la carte. Distribution is changing from retail stores selling physical product to Internet
delivery and playback on a wide variety of digital devices. Marketing and sales have
changed as well, with musicians increasingly using the Internet (MySpace and other
similar sites) to promote their music. The changes in the music industry may be a
precursor to similar changes in the film and television industries, but as yet, those
industries have not yet been transformed. For movies and television, technology
convergence has been hampered by the unwillingness of the industry to make its products
available on a wide range of Internet-enabled devices, largely because of concerns over
piracy. From a content standpoint, although there has been significant process toward
digital content creation tools, television and movies are still delivered primarily on analog
platforms, with some slow movement toward digital delivery platforms.
Projects
1. Research the issue of media convergence in the newspaper industry. Do you believe
that convergence will be good for the practice of journalism? Develop a reasoned
argument on either side of the issue and write a 3-to-5 page report on the topic. Include
in your discussion the barriers to convergence and whether these restrictions should be
eased.
Students who believe that convergence will be good for journalism may present
arguments that the ability to deliver news across many platforms will lead to a better
informed public. They may believe that reporters working more closely together will lead
to more objectivity in stories than was previously the case. Furthermore, stories that are
presented in one medium may drive readers to another medium to find out more
information. These viewer/readers will not be satisfied with simply a rehash of the same
story but rather will want in depth coverage of particular stories that interest them.
If indeed, as some convergence advocates are claiming, increased advertising will result
from higher ratings and increased Web site traffic, students may argue that additional
resources will be available for developing news stories more fully. More visibility for a
story may increase interest and consequently result in an increase in more in-depth
reporting. Students may believe that they can do more together than they could as

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separates units (i.e., that the sum will be greater than the two parts alone). They may even
go so far as to posit that convergence is the economic foundation upon which a
resurgence in journalistic standards can be built. On the other side, students who argue
that convergence is bad for journalism might posit that less objectivity, less aggressive
reporting methods, and less editorial integrity will result with industry convergence into
the hands of a few big oligopolies.
Overriding corporate issues can easily dampen journalistic zeal. Students may argue that
if the goal of convergence is to cut costs and produce news more cheaply, the quality of
news stories cant help but be harmed. Instead, a dumbing-down of journalism will occur
as print journalism takes on the entertainment values and aspects of television
journalism. Furthermore, a homogenization of journalism might occur as fewer voices are
heard and less variety of opinion is expressed. News stories might increasingly be used to
promote large corporate partners either in their endeavors or more menacingly their
viewpoints. These students will likely believe that the foundation upon which a
resurgence of journalistic standards can be built, is competition, and that trends towards
industry and media convergence are going to decrease competition and damage the
likelihood that controversial stories will be covered, especially stories that will reveal
problems in the boardrooms and business practices of corporate partners. Another
possible problem students might discuss is protections for unnamed sources when
multiple parties are working on a story and it is being shared across platforms.
There are barriers in federal law to cross platform ownership and concentration in
television and other media that are supposed to be enforced by the Federal
Communications Commission (FCC). However, these barriers have been weakened over
the years by the FCC and in December 2007, the FCC voted to allow media companies to
own both a television station and a newspaper in the largest 20 U.S. broadcast markets
and allows it in some smaller markets if companies can show they will produce at least
seven more hours of local news a week and prove they need to also own newspapers to
stay in business. However, expected lawsuits by public interest groups could lead to the
new rule being overturned, as happened in 2003 when the FCC proposed eliminating the
old rule as part of a broader overhaul of media ownership regulations.
Students should discuss the issue of lifting the ban on cross-platform ownership within
the context of their arguments.
2. Go to Amazon and explore the different digital products that are available. Prepare a
presentation to convey your findings to the class. For example are there Web-accessed,
Web-downloadable, dedicated e-books or books for PDAs offered? Which are in greater
abundance?
The purpose of this project is to familiarize students with the products that are talked
about in the chapter and to keep them apprised of changes in the e-book industry.
Presently, Amazon has a Kindle store that offers both the Kindle Reader and thousands of
Kindle edition products. For instance, as of mid-October 2008, there were more than
185,000 books available, as well as subscriptions to many top newspapers and magazines

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worldwide. Amazon also has a Digital Downloads store that offers access to Amazon
Shorts, that are never before seen short fiction and non-fiction works from a variety of
well-known authors, available only from Amazon. The shorts are available only
electronically, for 49 cents each and there are no printed editions. , Amazon also has an eBooks and Docs store that offers access to over 1 million e-Docs for sale. E-Docs can be
read using Adobe Acrobat Reader, and can be copied, saved, and printed (though
copyright law prohibits distribution or resale). Amazon also has an Audiobooks store that
offers audiobooks on CDs or in MP3 format.
3. Go to TBO.com (Tampa Bay Online). Surf the site and sample the offerings. Prepare a
Microsoft PowerPoint or other form of presentation to describe and display the efforts
you see at technology, content, and industry structure convergence as well as the revenue
model being used. Who owns this site?
At TBO, students will see a convergence strategy in action. Owner Media General
operates 24 daily newspapers, 19 TV stations, and a number of different online
enterprises, mostly in the southeastern U.S. On this site, the news staffs of TV station
WFLA, The Tampa Tribune, and their joint Web site, TBO.com, interchange stories and
reporters, and often work together on their coverage of the Tampa Bay area. News
broadcasts can be viewed on the WFLA.com site. Breaking news can be covered on the
Internet live, clips used on the 6 o'clock and 11 o'clock news, and the full story written up
for the Tampa Tribune. Content is adapted across platforms, however, content
convergence is not terribly significant as yet. The WFLA site looks unmistakably like a
television news show and the Tampa Tribune looks unmistakably like a newspaper. Users
can define personalized news pages so that the news, information, and advertising that
are the most relevant to them can be displayed. The revenue model is primarily
advertising supported. Banner ads, search engine ads, classified ads, and a job
recruitment center make up the other revenue streams. Communication and collaboration
across platforms can be seen along with the adaptation of content from one medium to
another.
4. Examine and report on the progress, if any, made with respect to the delivery of movies
on demand over the Internet.
Students should do a search on the Internet for recent news articles with respect to
Internet movies or Internet video on demand.
For instance, such a search in October 2008 will reveal articles about Amazons new
Video on Demand service, a streaming video service that allows consumers to watch
movies and TV shows through their browsers without downloading files. The service
complements Amazons existing Unbox that allows consumers to download shows to
their computers (currently Amazon offers about 40,000 such shows). Students may also
find articles about Apple TV, and other players in the Internet video on demand space,
such as Vudu (also a video-streaming service), Rokus Netflix Player, and xBox 360s.

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5. Has technology platform, content design or industry structure convergence occurred in

the online magazine industry and in what ways?
In the online magazine industry there has been very little convergence with other media.
Technological convergence has not been necessary to address readability issues, nor is
there any need for special readers or screen enhancement technology as in the e-book
industry. Content convergence in the areas of creation, production, and distribution has
occurred. The Web has created the opportunity to leverage print content to the new
distribution channel, and single content staffs were developed to produce content for two
platforms simultaneously. Industry structure convergence has not occurred, although in
the early days of e-commerce it was believed that an entirely new set of online zines
would rise to challenge the old giants. Instead, most purely online magazines have failed
while national brands have risen to dominance.

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