Sky isn't falling for old media segment
Updated: 2007-08-22 10:20
We live in an era of terms like blogs, vlogs, podcasts, wikis and folksonomies.
The exponential rate of technological change is transforming media and communication structures in a fundamental way. The rapid growth of new media technology including the Internet, interactive television networks and multimedia information services is challenging traditional media, including TV, radio and newspapers.
But experts warn that the impact should not be overstated, especially since old media are now using the platforms of new media to fend off the competition.
China's new media, including mobile and Internet media, generated 114 billion yuan in revenue last year, approximately one-third of the nation's media industry revenue, and a jump of 56 percent on 2005, according to the China Media Research Center.
Mobile media forms, including cell phone, short messaging services and cell phone broadcasting, netted 88.8 billion yuan in 2006, a 41.3 percent jump from the year before.
Meanwhile, Chinese-listed Internet companies recorded an average 28 percent operating margin last year, compared with traditional media's 21 percent, according to a recent report by Morgan Stanley. The gap between the two groups may widen to over 10 percentage points in the future, it is estimated.
"In the new media sector, leaders may take all (market share), unlike the old media players," Morgan Stanley said.
Focus Media commands a 95 percent market share in office TV-panel advertising. Tencent attracts 80 percent of instant messaging users while Sina.com and Sohu.com combine for more than 40 percent of online brand advertising sales.
By comparison, CCTV, or China Central Television, took in less than 30 percent of TV advertising sales, according to Morgan Stanley.
Online advertising contributed 3 percent of China's total advertising sales, up from nearly zero five years ago.
But that impact should not be exaggerated: Old media are taking action to defend their turf and more often than not jumping into the fray, analysts insist.
"I won't be worried about the challenge posed by new media, or at least I will not during my lifetime," said Dr Alberto Colussi, the chairman of the Management Board for AGB Nielsen Media Research, a major television ratings research firm.
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