The rise of shadow media

Shadow media is a new term that has arisen, which refers to traditional media professionals leaving their secure, traditional media jobs and bringing a new professionalism to online media (think Amanda Gome throwing caution to the wind, leaving BRW and starting SmartCompany).

Well, with traditional media now well and truly in trouble (mastheads in the US are now closing almost every other day) we thought that we would have a look at the topic at the Churchill Club, to see what could be uncovered and where the opportunities are.

Our panel for the evening was:

Debra Allanson, CEO of Ish Media, James Kirby, editor of the Eureka Report, Stephen Mayne, founder Crikey and the Mayne Report.

So what has changed?

• Categories were very skill-specific. There used to be TV, movies and journalism. Now it’s all just content, and small screen means mobile phones, not TV.
• The production focus has changed from broadcaster or distribution format, to users and the appliance used to access the content.
• Because a “connected, opportunistic crowd” is always reporting from the scene before traditional media, “breaking news” has been dramatically devalued.
• Many more revenue models have opened up; it’s not just advertising funded anymore.
• Editions (AM, PM, six o’clock news) are traditional media concepts that don’t map well into new media businesses. Instead it’s a 24/7 constant stream.
• Controlling redistribution of content has become impossibly difficult.
• Software programmers are now an integral part of the team.
• Search engines have soaked up the lion’s share of online advertising as they provide a more targeted service than online media.
• Connecting advertisers with customers at the moment when the customer is interested in buying, not just when the customer is generally interested.

So what’s still the same?

• Opportunistic members of crowds normally only get one event in their lifetime, so old fashioned story getting and news production still has to occur for effective new media properties.
• The same skills are required to produce quality content, but the engagement model tends to be shifting towards contract workers from anywhere around the globe, rather than local employees.
• Quality opinion and analysis is still getting produced by the same experts.
• Quality stories and tight video is still being produced by the same experts.

So what’s on the horizon?

• The money is currently being made by selling new media properties to traditional media, not through operations.  Therefore simply surviving can be the most valuable asset at this stage.  But this is sure to change due to the variety of revenue models opening up and the collapse of traditional media.
• Despite the size of the web, there is still little competition in quality content.
• Free-to-air TV, cinema and newspapers will continue to disintegrate, which will benefit new media models such as the internet and cable TV.
• Shadow media will not go unregulated forever.  There are sure to be problems which will cause knee-jerk legislative reactions.
• Content is still king.

An interesting session I thought.