The Economist writes: “The era of mass media is giving way to one of personal and participatory media, says Andreas Kluth. That will profoundly change both the media industry and society as a whole.”
In this new-media culture, says Paul Saffo, a director at the Institute for the Future in California, people no longer passively consume media (and thus advertising, its main revenue source) but actively participate in them, which usually means creating content, in whatever form and on whatever scale. This does not have to mean that people write their own newspaper, says Jeremy Zawodny, a prominent blogger and software engineer at Yahoo!, an internet portal. It could be as simple as rating the restaurants they went to or the movie they saw, or as sophisticated as shooting a home video.
This has profound implications for traditional business models in the media industry, which are based on aggregating large passive audiences and holding them captive during advertising interruptions. In the new-media era, audiences will occasionally be large, but often small, and usually tiny. Instead of a few large capital-rich media giants competing with one another for these audiences, it will be small firms and individuals competing or, more often, collaborating.