About the changes in the value chain of media business

• Grant number: 13/04486-5
• Support Opportunities: Scholarships abroad - Research
• Start date: September 01, 2013
• End date: December 31, 2013
• Field of knowledge: Applied Social Sciences - Communications - Journalism and Publishing
• Principal Investigator: Caio Túlio Vieira Costa
• Grantee: Caio Túlio Vieira Costa
• Host Investigator: David A Klatell
• Host Institution: Escola Superior de Propaganda e Marketing (ESPM). São Paulo , SP, Brazil
• Institution abroad: Columbia University in the City of New York, United States

Abstract

About the Changes in the Value Chain of Media BusinessThis project aims to harness invitation to a season of four months at Columbia University in New York, as a Visiting Research Fellow, to research and analyze the changes in the value chain in the media industry, especially its effects on the business of digital newspapers, and point outputs that the industry is trying to succeed in the new realities of communication.When they are out of digital media, traditional communication vehicles dominate 100% of the value chain of their business. They create content and have full control of their production, processing and distribution.By migrating to the digital environment, online, traditional vehicles face a drastic change in their business. They lose some control. They are obliged to share value with telecommunications companies (in the distribution of bits), with hardware industry (for receiving bits in desktops, laptops, tablets and mobile phones), with software and technology companies (Microsoft, Oracle, IBM, Google, Facebook, YouTube) that not only sell for media companies' platforms and systems but also deal with their content. In the meantime, in the top of this new value chain, traditional vehicles need to share their content with individuals interacting in social networks.Regardless of the change in the value chain, traditional industry, especially newspapers, is transposing or repackaging their content to online environment since the Internet became a commercial product in 1995, believing that the advertising would pay the bill. It not paid. Now rehearses charging for content. There is also a stream that wants to "save" journalism, turning it into a nonprofit activity.This research aims to probe how the communications industry updated their content platform, especially multimedia, and how it is (or not) resourceful in finding models capable to bring revenue that could finance their newspaper structures while maintaining quality.The research aims to investigate and suggest what is the ideal business model or, if are detected more than one, what are the different business models for industry to incorporate technological and behavior changes in order to achieve commercial success without neglecting the principles of quality journalism, the independent recitation of facts, the surveillance of powers and the critical dialogue. (AU)