This cutting-edge textbook examines contemporary media business models in the context of Artificial Intelligence (AI) and digital transformation. AI has dramatically impacted media production and distribution, from recommendation engines to synthetic humans, from video-to-text tools to natural language models. "AI is really the change agent of the media industry," answered a natural language generation model when AI was ‘asked’ about the subject of this book. "It will open incredible opportunities." This book seeks to explore them.
The media is examined through four sections. ‘Principles’ maps business models and the key tools of AI. ‘Platforms’ covers distribution channels in Games, Streamers, Social Networks, Broadcast and Digital Publishing. ‘Producers’ covers the engines of content-making, including Scripted, Entertainment, Factual, Content Marketing, Creators and Music. Finally, ‘Pioneers’ covers emerging sectors of Podcasting, Esports, the Metaverse and other AI-driven developments. Then in each chapter, a standard value creation model is applied, mapping a single sector through development, production, distribution and monetisation.
Diverse case studies are analysed from India, Nigeria, South Korea, South Africa, France, the Netherlands, the US, the UK, Denmark and China – around creative entrepreneurship, revenue models, profit drivers, rights and emerging AI tools. Questions are provided for each case, whilst chapter summaries cement learning.
Applied and technology-focused, this text offers core reading for advanced undergraduate and postgraduates studying Media Management – or the relationship between Entertainment, Media and Technology. Online resources include chapter-by-chapter PowerPoint slides and an Instructor’s Manual with further exercises and case studies.
Author(s): Alex Connock
Publisher: Routledge
Year: 2022
Language: English
Pages: 344
City: London
Cover
Half Title
Title Page
Copyright Page
Table of Contents
Acknowledgements
About the Author
Section A Principles: Media Business Models and the Basic Tools of Artificial Intelligence
Chapter 1 Introduction: A Four Section Approach – Principles, Platforms, Producers, Pioneers
Artificial Intelligence in the Media Business
Structure
Analytical Model
Definitions
Diverse Sources
Bibliography
Chapter 2 Media Management and Artificial Intelligence: The Radical Impact of AI On the Media Business
The Media Business and AI
Examples of AI in Creativity
AI/human Collaboration
Implications of AI
Digital Transformation
Tech Creating New Players in Media
New Forms of Content
Artificial Intelligence
Real-time Insights
AI and Development
AI and Content Ownership
AI and Media Production
AI and Media Distribution
Regulation, Content and Algorithms
AI and Monetisation in Media
The Evolution of Widespread AI Adoption in Media
AI Ethics and the Media
Core Questions About AI
Bibliography
Chapter 3 Media Business Models: A Four-Stage Value Creation Model for Each Media Segment – Development, Production, Distribution and Monetisation
The Evolving Definition of Media Businesses
Blurring the Lines Between Consumers and Professional Media
Life Cycle of Any Media Project
Development Stage
Uncertainty of Economic Model in Content
ROI Calculation On Media Investment
Principles of Collective Value Creation
Production Stage
Radical Shift in Media Industry Verticals
Distribution Stage
Changes in Distribution
Monetisation Stage
Challenges of Monetisation
Product
Customer Lifetime Value
Value of Data
The Media Value Chain
Bibliography
Chapter 4 Overview of AI: Radical New Tools Are Being Used in Media Management and Beyond
A Brief History of AI
AI’s Intermittent Growth in the Second Half of the Twentieth Century
Categories of AI
Global Economic Significance of AI
Machine Learning
Supervised Learning
Reinforcement Learning
Unsupervised Learning
Self-supervised Learning (SSL)
Neural Networks and Deep Learning
Deep Learning
Computer Vision
Generative Adversarial Networks (GANs)
Positive Uses of GANs
Natural Language Processing
Limitations of AI
Class Discussion Questions
Bibliography
Section B Platforms: The Engines of Media Distribution
Chapter 5 Games: AI Is Powering Game Platforms, and Games Are Powering AI
Introduction to the Sector
AI Research and Gaming
Gaming and Entertainment
Gaming as an Investable Business
The Value Creation Model
Flywheel Effect
Franchise Effect
Development
Structure of Industry
Design Process
Key Dimensions in Development
Production
Budgets
Publisher Financing Deal Terms
Other Forms of Game Financing
Distribution
Success Factors in Distribution
Monetisation
Unit Purchases
In-game Microtransactions
Types of Microtransactions
In-game Advertising
IP Exploitation
Acquisitions
AI Technologies
Bibliography
Chapter 6 Social Networks: The Defining Distribution Platform of the Digital Age
Introduction to the Sector
Engage and Enrage
The Value Creation Model
Development
Idea
Investment
Implementation
Production
Distribution
The Challenge of Algorithmic Recommendation
Disinformation
Monetisation
Copyright Control and Management
Intermediate Businesses to Monetise Content
Sponsorship
Policies
Chapter Summary
Bibliography
Chapter 7 Streamers: An Entirely New Media Industry Is Defined By Its Use of AI
Introduction to the Sector
Categories of Streamers
Finance-driven
Tech-subsidised
Legacy Rights Owners
Legacy Broadcasters
Niche Players
Consumer Perspective On Streamers
The Value Creation Model
Business Development
Differentiate By Programme Acquisition
Differentiate By Global Footprint
Differentiate By Bespoke Commissioning
Differentiate By Brand Extension
Production
Distribution
Viewing Figures
Monetisation
Growth Constraints of Streamers
User Fatigue?
Chapter Summary
Bibliography
Chapter 8 Broadcasters: Existentially Threatened, Pivoting to Video-On-Demand and Fighting Back
The Value Creation Model
Categories of TV Channel
Business Development
Production
Commercial Value
Public Role
Distribution and Digital Technology
Measuring Success
AVOD: an Online Alternative to Broadcast
Programmatic Advertising
Data
Pace of Change
Monetisation
Chapter Summary
Bibliography
Chapter 9 Digital Publishers: News Sites and Social Channels Now Share Revenue Models and AI Technologies
Introduction to the Sector
The Value Creation Model
Business Development
Legacy Titles
New Titles – Ad-Funded
Production
Distribution
Monetisation
Subscription Model (Blogs)
Subscription Model (Newspaper Paywalls)
Advertising
Branded Content
E-commerce
Public Sector Funding
Long-term Equity Value Creation/company Sale
Chapter Summary
Bibliography
Section C Producers: Content Creation at Scale – and the Transformative Impact of AI
Chapter 10 Scripted: Digital-Driven Change in Production and Distribution Models
Introduction to the Sector
The Value Creation Model
Development
Selection of Ideas
Importance of Track Record
Top Franchises in Scripted
Stars
Production
Production Funding Options
Production Execution
Distribution and Monetisation
Upfront Payment
Backend Payment
Sale of Equity, Business Or Rights
Chapter Summary
Bibliography
Chapter 11 Entertainment: A Rapidly Globalised Content Footprint
Introduction to the Sector
Range of Entertainment TV
The Value Creation Model
Development
Nature of TV Formats
Details of Formats
Business Model of Development
Production
Production Issues
Distribution
Components of Distribution
Monetisation
Format Monetisation
Budget Principles
Tape Sales and ‘Windowing’
Chapter Summary
Bibliography
Chapter 12 Factual: Merged Distribution Channels Have Changed a Traditional Industry
Introduction to the Sector
Social Good
Sector in Evolution
Scale of Factual Industry
The Value Creation Model
Development
Production
Distribution and Monetisation
Broadcaster/streamer
Foundations
Commercial Sponsor
Distribution Investor
Directly Monetised Specialist Website.
Sale of the Company
Chapter Summary
Bibliography
Chapter 13 Marketing Content: Video Content Is Now Used in Marketing at Unprecedented Scale and Range
Introduction to the Sector
Diversification of Marketing Content
Diversification of Production
Categories of Marketing Content
The Value Creation Model
Development
TV Commercials
Branded Content
How Much Brand to Integrate
How Much of Each Type of Content to Make: Hero/hub/hygiene
Production
Brand Integration Success Factors
Distribution
Paid Media
Owned Media
Earned Media
Monetisation
Value of Brand Integration
Chapter Summary
Bibliography
Chapter 14 Creators: A New, Global and Democratic Model of Media Ownership
Introduction to the Sector
The Value Creation Model
Development
Self-grown Stars
Celebrities From Other Fields
Virtual Influencers
Production
Distribution
Mastering the Platform Algorithm
Monetisation
Programmatic Advertising
Affiliate Programmes
Creator Funding
E-commerce
Sponsorship/product Placement
Direct Subscription
Alternative and Hybrid Monetisation Tools
New Technologies Such as NFTs
Long-term Catalogue Sales
Chapter Summary
Bibliography
Chapter 15 Music: A Business Model Transformed By Technology, From Creation to Monetisation
Introduction to the Sector
The Value Creation Model
Development
Production
Technologies of AI in Music Production
Ethical Challenges of AI in Music
Distribution
Introduction to Music Streaming
Spotify’s Growth
Controversies of the Streaming Business Model
The Diverse Streaming Ecosystem
AI in Streaming Distribution
Monetisation
Cash Generation Channels
Equity Value Realisation
Chapter Summary
Bibliography
Section D Pioneers: New Sectors Building the Future of Media Production and Distribution
Chapter 16 Podcasting: A Digital-Driven Content Development Factory
Introduction to the Sector
The Value Creation Model
Development
Genre Breakdown
Production
Industry Range
Distribution
Monetisation
Paid Production
Advertising Sales
Programmatic Advertising
Sponsorship
E-commerce and Affiliate Models
Listener Donations
Selling Formats
Selling the Business
Chapter Summary
Bibliography
Chapter 17 Esports: A New Digital Business, But With Echoes of Twentieth-Century Models
Introduction to the Sector
Scale and Content
Investment
Academic Study
The Value Creation Model
Development
Production and Distribution
Role of Players
League Structure
The Network Economies of Scale
Monetisation
Complex Value Drivers
IP/rights Exploitation
Competition and League Sponsorships
Advertising
Team Economics
Streamers and Broadcasters
Gambling
Chapter Summary
Bibliography
Chapter 18 The Metaverse: A Virtual World That Does Not Yet Exist Still Has Growing Momentum
Introduction to the Sector
The Value Creation Model
Business Development
Key Principles
Key Players
No Singular Vision
Production
Distribution
Monetisation
Bibliography
Chapter 19 Future of the Media Business: Challenges and Opportunities for Media Management in the Age of AI
Relentless Evolution in the Media Business
Centrality of Technology
Next Generation
Primacy of IP Grows With Technology Solutions Like NFTs
Major Impact of AI
Star Power Increases, But Synthetic Voice and Video Complicate It
Radical Global Diversification of Stories and Storytelling
Direct Monetisation, Via E-Commerce, of Democratic Production
Subscription Remains the Most Highly Rated Monetisation Tool
Normalisation of Companies and Governments as Media Producers
Digital Privacy Debates Continue to Profoundly Shape the Media Market
Information Warfare Proliferates
Reputation: the New Equity
Summary
Bibliography
Index
