Parks Associates Blog

Wednesday, February 24, 2010

Business Models for On-Demand Lifestyles

In the traditional value chain for media, consumers have paid monthly or a la carte to aggregators or distributors. The advent of digital media gave rise to a new relationship, where the consumer and the content owner were connected directly, often bypassing those traditional content gatekeepers.

But even the content owners can lose out on this arrangement since it is still an open question on how to monetize over-the-top (OTT) media. In Europe in particular, consumers are downloading video in large numbers but primarily because the content is free. When they have to pay, they go to more traditional video venues, such as the cinema.

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