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Rina Chandran

Mumbai , Nov. 21

MEDIA is getting more fragmented. There are shifts in media consumption, and consumers are seeking a more active role in creating content — so, media owners will need to get serious about commerce and consumer involvement to stay relevant and solvent.

Media companies have tended to simply "talk to consumers, blasting information at them," but they will now have to create experiences for them, according to Mr Chris Charron, Group Director, Forrester Research Inc of the US.

"Look at blogs on the Web, or the growing popularity of TiVo - these are ways in which consumers are taking control," he told Business Line on the sidelines of AdAsia 2003.

"So media owners must create more engaging and interactive media."

While the owners will have to focus their offering better through niche channels, they must also provide multi-channel experiences, and get serious about tapping additional revenue streams such as merchandise and services, Mr Charron said.

"They go to great lengths to attract consumers with their content, which the advertisers take advantage of, so they must get a payment for generating leads for them," he added.

"Perhaps they can take ownership of local sports teams and sell tickets, or create content for other businesses." An example of a new-age company that is doing all of this successfully is Manchester United, Mr Charron said.

"Certainly, this could mean erosion in the trust that consumers place in media; in the US, the highest level of trust is for newspapers, at about 46 per cent."

"So there is a huge percentage of people who don't trust the media, but that is also because there are so many new media brands with poor quality content," he added.

"So consumers have to take more responsibility, and that is a part of the price of greater power for them."

In India, media owners will first have to get their basics in place: "We cannot develop additional revenue streams unless we first get the right subscription revenues through the conditional access system," said Mr Rajat Jain, Executive Vice-President, SET Max.

"In developed markets, this accounts for even more than the advertising revenues. So, only when that is secure, can we develop other options."

"Advertisers will have to become like de facto content developers, seeking ways to connect with the consumer," Mr Charron said. "It will be a bit like catching fruit flies — you have to place sweets in a lot of different places."

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