Digital Media 101

1. Digital Media 101 Drivers & Frameworks: How We Got Here and Where We are Going Dr. Gigi Johnson, Executive Director, Maremel InstituteEducation Programs in Media and Cultural Change @maremel 1

2. Computers as a retail consumer product seemed humorous in 1965 Cartoon, Gordon Moore articleElectronics, Volume 38, Number 8, April 19, 1965. 2

3. 2 Forces Geometrically Changed How We Connect Dramatic increase and diffusion of data, storage, and computer processing power into the system and into homes and cell phones Dramatic decrease in the cost of “distance” (Cairncross, 1997) from both deregulation and technology creating infrastructure and reduced per minute or per connection cost 3

4. Source: Intel.com1965: prediction that the number of transistors on a chip will double about every two years Moore’s Law continues to drop cost and increase speed of computing Source: Deloitte’s Center for the Edge 4

5. Kuyper’s Law: Storage Cost Continues to Plummet Source: Deloitte’s Center for the Edge 5

6. Bandwidth Continues to Decline in Cost, Increase in Speed and Capacity Source: Deloitte’s Center for the Edge 6

7. Internet is Reaching the Last Third of U.S. users, Mostly Over 65 Sources: Deloitte Center for the Edge, Pew 7

8. US Mobile Has Reached Saturation; Internet/4G to Keep Growing 8

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10. Technology: Changing Rules 10

11. 4 costs have transformed content creation, transport, and playback Cost of digital distribution and inventory Costs of transit and storage Costs of creation and tools Costs (and rewards) have increased to integrate, e.g., Google, Facebook, Vevo, YouTube, Twitter, etc. 11

12. Resulting Power Shifters and New Limits • Extensive computing power in the home and inexpensive storage -- heading to Cloud Computing • In most countries, broadband in expansion or late adopter stage • Battery/power being “solved” • Compression (continuing) to be “solved” • Heat (heat?)/energy use • Tools for inexpensive creation 12

13. Time of Consumption • Place of Consumption • Metaphors/rules of consumption • Time of Capture • Place of Capture • Rules of Capture/Editing/Context Time Space Connections Media technologies connect “Where” and “When” 13

14. Progressive Media Have Re-sliced Time and Place for Consumers 14

15. Time and Place Shifted to the Home and Onward 15

16. New Media Cracked Open Time and Place Permanently …so will we ever need to purchase another copy of a library media? DATA is now the driver. 16

17. Digital Connection Drivers are Reconnecting Time and Place with Data Technologies of Connection • Metadata to the frame • Recording relationship with user • Recording relationship with distribution • Influencing relationships with filter and relationship with other media objects • Allowing connection with other media objects 17

18. Data now measures and guides connection between consumer use and advertiser measurement of time Time: Sliced and Diced with Data 18

19. Data Driving New Business Models • Licensing and new syndications • Razor/blade – cross-subsidy • Paying for virtual goods or relationship • Versioning/”Freemium” (free or inexpensive versions to promote and for various media) • Selling data and behavior (like advertising) • New “Windows” – new slicing economic rent by timeframe and technology limits • “Library” – selling different time/place values for paid-for content 19

20. Variable Inputs + Uncertain Outputs = Excess Production and Capacity Abundant Creation Creative Community Source: Caves, Creative Industries, 2000 New Filters + New Abundance Drive New Creative Industry Structures 20

21. Gartner’s Hype Cycles: New Models Push in with Inflated Expectations 21

22. Gartner Hype Positions Shifted: 2009-2011 Editions 22

23. New Powers: Alliances, Keystones, and New Aggregators 23

24. Interwoven Networks of Influence are Changing 24

25. Bulk of Internet Users: Asia and Europe 25

26. Global Shifts to Connected Participation Source: Universal McCann Wave4 7/09 26

27. Citizen journalism unleashed whole new realms of participation, politics, and recommendations 27

28. Wireless: 3G projected to strongly penetrate before 2016, behind Europe and Japan 28

29. Expanding our External Brains: New Expectations 29

30. Consumer decision points are changing to “right now” . . . and instant data is now available for that decision influencing moment 30

31. Shifting Powers: Information, Recommendation, and/or Relevance Techmeme: Social graph vs. Interest graph – The Age of Relevance 31

32. Data Recrafts Assumptions Around Territory and Contracts Local: Collecting local audiences for local advertising, local media content, and geo-contracted structures of national content and ads…. Search-based local advertising: restructuring hyperlocal market…release of mechanical “need” for local content distribution over time (including education? Newspapers?) New business combinations? Local creation? Local social tools/conversations? 32

33. Data "Flow": Newer Need for two-way Infrastructures • 2-way information on music, books, digital publishing, connected media • Distribution to dozens or hundreds of distribution points in different formats • Need to realign internal company processes – reinvent the pipes of the corporation – to maximize these assets • Not just digital workflow – digital decision-making 33

34. Music as a Small-File Canary: What Happened? Source: RIAA figures; Digital Music Newshttp://infographicchart.posterous.com/chart-the-real-death-of-the-music-industry 34

35. Digital Now: Singles On DemandChanging Tides of US Music Sales Source: RIAA figures; Digital Music Newshttp://infographicchart.posterous.com/chart-the-real-death-of-the-music-industry 35

36. New Ecosystems Building to Integrate with Re-Aggregators

37. Advertisers: Catching and Driving Change Source: Blackstone 37

38. TV: Tipping into Data, Relational, and Social? Source: Silicon Valley Insider

39. Shifting Viewing Trends 39

40. TV: What and Where? Source: XBox

41. Dr. Gigi Johnson, Executive Director Maremel InstituteEducation Programs in Media and Cultural Change @maremel 626-603-2420 www.maremel.com