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, 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-per-view, 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 content. Deep information and content will have to be in a more convenient form.