The tipping point approaches for content providers

Will 2012 finally be a “year of content”? The question will be addressed cautiously after a few years of false promises. To clarify this question for those puzzled by all the different kinds of content already engulfing the digital world today, the term “year of content” is commercial-speak. In other words, the ultimate issue facing “content providers” is how to make good money from what they do.

A couple of years ago, this question primarily involved conventional content providers such as newspaper publishers or music companies. Today, the “industry” has substantially expanded to cover the amateur side of the business. Bloggers, “YouTubers”, part-time writers and the like are beginning to think seriously about possible returns for their creations.

The “outlets” are there. The “cheap” production methods are there. The “quick” reaches to large, unlimited audiences are there. But, will the money be there, too?

The arrival of computer tablets and the coming of age of the smart phone is supposed to be the game changer. You can read anything on tablets, as soon as someone has finished writing it. You can listen to any song on a tablet as soon as someone or some company has finished composing and recording it. It takes minutes for a high-value home video to be uploaded and watched by thousands – or many more.

The good news remains the same as it was a few years ago: production of content is getting cheaper and cheaper. The bad news is, more and more people are becoming content providers, and those who aren’t have been spoiled by the abundance of online “freebies”. More bad news for struggling content providers is that those serving as the new “mediums” such as Amazon and Apple are not letting up on their insistence of getting the lion’s share.

To sum it up, a “new dreamer” may like the situation. Young, wannabe writers may cherish the opportunities to give it a shot, putting their work on Amazon’s “shelf” and hoping for the best. They have nothing to lose to begin with, and yet they can win a big lottery from the “auto pilot” stream of income. But if you are a publishing giant with old investment to protect and labour to care about, it becomes complicated. Nobody wants to be paid less, and digital publishing, cheap as it is, yields insufficiently if you are a big company.

The truth, however, is that the technological advancement is still accelerating in total disregard for the money aspect that concerns content providers. Video and still-photo cameras on smart phones are getting better and better. E-readers are getting thinner and lighter. People used to watch just video clips on their mobile devices or read just short documents, but entire movies, TV programmes and books can now be carried around and consumed any time and anywhere. Applications, or tools, used to produce content for the digital outlets have become incredibly simplified and will get simpler and simpler still.

Researchers on the future of the media industries, publishing in particular, have warned that, with or without money, the tipping point is coming. Many analysts see 2012 as a big year for e-books, many of which are expected to be self-published. E-books have gained a solid foothold in the United States and Europe, which is about 18 months behind the US in terms of exposure to e-books. But that market could come of age in late 2012 and into 2013, experts predict.

Most analysts call for the drastic adaptation of big players like the publishers or studio owners, as well as content makers like authors or songwriters. Content must be good enough to sell. Profit sharing must be fair for all sides. Big content-providing companies may need to revamp policies, strategies and probably management structures. All of this is easier said than done.

Most indications point to a very challenging year for content providers. As we’ve often heard over the past few years, “Content is king”. The implication of that was that content providers can rule the market. Which may still be true, if immediate, massive financial success is not considered an essential part of the crown, that is.