Last week I went to an event concerning the media! It was a very sociable affair with a delicious breakfast. Yet amid this Christmassy gathering a more serious message came through. As most people will be aware the media industry is going through substantial change and keeping up with the changes means dramatic restructuring which is both costly and untested made worse by a recessionary context. But the Guardian newspaper spoke wisely and offered lessons that all business can take on board. Industry change (whether happening in the recession or not) does not always have to be built on pessimism or fear. Change in an industry is not a bad thing, rather change is a sign of progression and industries that want to survive must progress. Change often feels bad but that is because change is unknown and with the unknown comes risk. The media industry is a prime example of an industry that has had to deal with change for hundreds of years and has embraced it; the arrival of radios, the transition to television and the shift to web 2.0 not to mention the endless list of VHS’s, CD’s, DVDs, Mini Disks and now the ipad!
During an intense panel discussion several media moguls highlighted that many businesses are facing up to change only now while trying to pull through the recession. Instead of holding steadfast and riding the recession out, whole industries (notably the media) is restructuring. They stated that this is because in the good times it is easy to carry on as before (with the same budgets, strategies, people etc.) and not face up to the big decisions facing them. But in bad times there is no option but to face up to them as there is nowhere to hide. I think that change for value adding growth should be continuous. Firms should always be adapting and changing. Change encourages progression, competition and therefore productivity. No firm should be content standing still, they should always be evolving, growing and adapting.
They then went on to talk about the tough choices that are being made at the moment, one of them being how do you monetize web content? One newspaper said that they were exploring all beneficial relationships and partnerships that would act as network externalities for one another and prevent the consumer feeling the pinch. This highlights that during times of change there are always positive routes to take which may not immediately be obvious and the obvious is not always as it seems.
I left the event feeling lifted; it’s wonders what positive thinking and a few flowery shirts with overtly bright ties can do on a cold winters day!
