In light of a lengthy discussion last Friday i wanted to find out more about the way in which the media is shaped by the economy and public demand…
In social media we have an online institution in which people can compare and discuss the relevance of current news; consequently we can see the demand for stories via subjects and articles that trend online. As David Pakman of Venrock Capital notes, too many media giants are more than happy to have a little disruption through online sources, provided it doesn’t change the supply-demand balance they rely on.
I would be inclined to regard the online phenomena in the completely opposite way to Pakman, in that it provides a platform for the largest media corporations to work on. Given that the majority of newspapers now run their breaking news headlines entirely online, the relevance of the material we read about in the next mornings paper is purely contextual. Social Networking gives these outlets an idea of what the people want, enabling them to exploit the common opinion in order to sell.
Pakman in contrast claimed, we need to ensure that social networking “doesn’t shake up the supply-and-demand equation of our business, doesn’t destroy the content-amortization business, isn’t disruptive simply for the sake of being disruptive”.
Read more on Pakman: http://gigaom.com/2012/01/26/memo-to-media-supply-and-demand-are-out-of-your-hands/