Identify and explain the four other challenges facing content producers and owners.

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The other challenges facing content producers and owners are cost, consumer attitudes, cannibalization of existing distribution channels, and rights management. 

  • Cost challenges 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 firm’s brand name will become diluted or displaced by the portal or aggregator’s 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.

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