Chapter%2012(2)

Why it seems to be easier for newmedia folks to

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Unformatted text preview: be easier for newmedia folks to figure out the oldmedia content business, than for oldmedia folks to figure out the new technology for an Internet business. Examples: iTunes now dominates music sales. Google thrives by selling ads that run next to content created by struggling newspapers and magazines. What about usergenerated or "produser" content? Time spent on some social networking sites is decreasing. Users say they are annoyed with ads and bored with profile pages. Social networks have some of the lowest response rates on the Web. Only 4 in 10,000 people who see an ad on a socialnetwork site click on it (compared with 20 in 10,000 across the Web). The low clickthrough rate might be a function of young demographics (relatively little discretionary income) and basic function (not a place to sell things). Data flow and net neutrality Those who favor net neutrality believe every web site should have access to the same Internet network speed and access. Data flow at most telecommunication and cable companies is structured in ways that make it faster to download than upload, which in turn favors media consumption rather than media production and distribution. Managers of some telecommunications companies wish to abandon network neutrality by imposing connection charges on consumers who are heavy users of bandwidth, or distribution charges on some content providers. Potential impact on consumers: Our web browsing experience could be affected if our Internet service provider (ISP) were to (1) favor one media company's content by slowing downloads of content originating from competing media companies, or (2) charge more to download content from a competing media company. Web economics and ecommerce Ecommerce...
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