The Economics of Information, Communication, and Entertainment
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1 The Economics of Information, Communication, and Entertainment The Impacts of Digital Technology in the 21st Century Series Editor Darcy Gerbarg President, DVI, Ltd. Senior Fellow Columbia Institute for Tele-Information (CITI) Columbia University Business School New York, NY, USA More information about this series at
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3 Gali Einav Editor The New World of Transitioned Media Digital Realignment and Industry Transformation
4 Editor Gali Einav TMT Strategic Advisors New York, NY, USA ISSN ISSN (electronic) ISBN ISBN (ebook) DOI / Springer Cham Heidelberg New York Dordrecht London Library of Congress Control Number: Springer International Publishing Switzerland 2015 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Duplication of this publication or parts thereof is permitted only under the provisions of the Copyright Law of the Publisher s location, in its current version, and permission for use must always be obtained from Springer. Permissions for use may be obtained through RightsLink at the Copyright Clearance Center. Violations are liable to prosecution under the respective Copyright Law. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein. Printed on acid-free paper Springer is part of Springer Science+Business Media (
5 Acknowledgments First and foremost, thank you to the Authors who contributed their time, knowledge and insights. This book would not be possible without them. Thank you to the great team at Springer. Nicholas Philipson who believed in me enough to green light a second book and provided warm encouragement throughout the process. Thanks to Nitza Jones-Sepulveda for her attentiveness and availability to answer questions and provide information which made work so much more pleasurable. Special thanks to Darcy Gerbarg, whose ongoing support and great ideas have been instrumental. Thanks to Professor Eli Noam and the Columbia Institute of Tele- Information (CITI) at Columbia University s Business school, who collaborated with me on two successful Transitioned Media conferences, helping extend the conversation around this fascinating topic. Deepest thanks to my partner Levi Shapiro, whose ongoing support and exceptional proof reading talents were instrumental during this whole process, and to my daughter Aya. Observing her makes me learn new things every day. v
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7 Contents 1 Introduction... 1 Gali Einav Part I Transitioned Ideas and Organizational Structures 2 Digital Media and the Transformation of Space John Carey 3 The Companies We Keep: Social Networks, Customer Service, and the Coming Corporate Challenges Liel Leibovitz 4 Health as a Social Media Kristen M. Daly 5 The New Rules of Engagement: Social Media, Online Games, and the New Wave of Digital Conflict and Competition Rich Groner Part II Transitioned Media: Re-invented for a Digital Age 6 The Robot Journalist in the Age of Social Physics: The End of Human Journalism? Noam Lemelshtrich Latar 7 The Times They Are A Changin From Newspapers to TV, Traditional Shifts to Digital Gali Einav and Nathan Lipson 8 Embracing the Era of Open Source Marketing Carl Fremont 9 The Role of Mobile in the Media Environment Rita Ku vii
8 viii Contents 10 Next Gen Video Game Consumers Joost van Dreunen 11 Measuring Media Usage Behavior: Improving the Quality of Research and Reports on Consumers Use of Media Horst Stipp Index
9 Author Bios John Carey is Professor of Communications and Media Management at the Gabelli School of Business, Fordham University, and Co-Director of Fordham s Center for Communication. Previously, he taught at Columbia Business School and New York University. He has more than 25 years experience in conducting research about new media and consumer behavior. Recently, he has conducted studies of media consumption of the Olympics, consumer use of mobile video technologies, social media, and the media habits of baby boomers. Clients have included A&E Television Networks, AT&T, Cablevision, Comcast/NBC Universal, Google, The New York Times, Televisa and XM Satellite Radio, among others. John holds a Ph.D. from the Annenberg School for Communication at the University of Pennsylvania and has more than 100 publications about new technology adoption and consumer use of media. Kristen M. Daly received her doctorate in Communications from Columbia University where her research focused on technology, new media and cinema. She has worked in independent film, documentary and community radio both in the United States and abroad. Working with WITNESS and Ciné Institute, she has pursued her interest in technology and new media in development, a passion she is continuing through a Masters in Global Public Health at the Colorado School of Public Health. Her writings have appeared in Cinema Journal, Peace Review, Explorations in Media Ecology, Kinephanos and Transformations Journal. ix
10 x Author Bios Joost van Dreunen is fascinated by games and human behavior. His research explores video games as an entryway to contemporary media culture. After completing a Master s degree in Media Studies in Amsterdam, he continued his research in New York. There he was project manager on a landmark investigation of three decades of ownership trends in the American media landscape, the results of which were part of a congressional testimony, a series of articles and a book. In 2010 he received his doctorate from Columbia University for his dissertation titled Social Gaming and Communicative Exchange. Most recently Joost co-authored Risk Mitigation through Business Model Design: The Case of the Digital Game Industry in the UK (under review) and teaches business fundamentals of interactive entertainment at New York University. In addition to his academic pursuits, Joost is also founder and CEO of a digital games research firm called SuperData. In early 2010 the company secured multiyear seed funding. Clients include publishers such as Activision/Blizzard, Bandai- Namco, Electronic Arts, Microsoft, SEGA, Square-Enix, Ubisoft, Wargaming.net and Zynga. Joost lives in the East Village with his wife Janelle and son Maximus. Gali Einav is Managing Partner at TMT Strategic Advisors, a strategic advisory firm specializing in the technology, media and telecom sectors. Clients include wireless carriers, broadcasters and television networks, cable and satellite operators, research companies and technology vendors. She is also an Advisory Board member for Nielsen Innovate, an early stage investment arm of Nielsen and Partam High Tech. Previously, she worked in the Business Planning and Development team at Canoe Ventures, a consortium of US cable operators charged with developing interactive advertising formats for live television. Prior to that, Dr. Einav led the Digital Insights and Innovations Research group at NBC Universal, overseeing strategic, business and consumer research across digital platforms. She has published and edited a variety of publications, including Transitioned Media A Turning Point Into the Digital Realm and Consumer Behavior in the Digital TV Environment and Beyond. Dr. Einav holds a Ph.D. in Interactive Television from Columbia University and is an Adjunct Professor of Digital Media at IDC Herzliya.
11 Author Bios xi Carl Fremont As Global Chief Digital Officer, Carl oversees the growth and innovation of MEC s digital and performance making business globally encompassing social, mobile, programmatic, search video. MEC is one of the world s leading media agency networks, with 5,000 people across 81 countries. Prior to joining MEC in 2013, Carl spent 13 years at Digitas, where he led the Global Media practice to extraordinary growth in all media forms; and worked with clients including America Express, Whirlpool, Delta, Mars, Meade Johnson, Taco Bell and ebay. Previously, he served as Executive Vice President of Media Services at Wunderman for 16 years, managing all direct marketing activities for clients including Ford, Citibank, American Express, Colgate and AT&T. A leading industry player, Carl is frequently sought out and quoted in the press on his views on the future of marketing and media. He also serves on the Advisory Boards of a select number of digital companies and venture groups and is a consultant for GLG, Guidepoint and Pacific Crest, and is also a board member of NextMark. In 2009, Carl was elected to the Ad Club of New York Executive Board of Directors and serves as its lead for Im part, which since its inception has raised over $10MM (US) for scholarships, training and education of diversity talent in the Advertising and Marketing Industry. Carl also serves on the Board of Directors for breastcancer.org. Earlier in Carl s career, he was an Adjunct Professor at New York University School of Continued Education. Carl is a graduate of Fairleigh Dickenson University. He resides in New Jersey with his wife and two daughters. Rich Groner is a researcher in the retail industry where he has spent over a decade working to analyze communication between buyers and sellers. His focus relates to the influence of digital, guest-facing media and the prediction of possible impacts from multi-channel commutation. Currently, he works for lululemon athletica, based in New York City, and managers a team of analysts that validate in-store and online transactions for patterns, trends, and fraud. His most recent article, Asteya and the Attitude of Gratitude, which appeared in Loss Prevention Magazine, was an exploration of how the ethical teachings of yoga can apply to employee relations in the workplace. Rich is a graduate of Washington & Lee University where he studied philosophy, and uses that background to take a unique approach to deciphering modern complexities.
12 xii Author Bios Rita Ku is currently VP/Director of the Strategy & Analysis team at Digitas in NYC. She has expertise in cross media, consumer insights research and digital analytics. Rita has overseen and provided analytics frameworks and thought leadership across a wide variety of businesses including American Express, GlaxoSmithKline, Teva, SC Johnson and Bravo TV. LIel Leibovitz teaches about digital media and video games at New York University. He is the author or coauthor of a number of books, including, most recently, A Broken Hallelujah: Rock and Roll, Redemption, and the Life of Leonard Cohen. Noam Lemelshtrich Latar is the Founding Dean of the Sammy Ofer School of Communications at IDC Herzliya (the first private academic institution in Israel). Served on the executive committee of the Israeli Press Council and as the Chairperson of the Israel Communications Association (ISCA) from 2009 to The ISCA represents all the media researchers in the Israeli universities and colleges. Lemelshtrich Latar received a Ph.D. in Communications from MIT in 1974, and M.Sc. in Engineering Systems from Stanford in Was among the founders of the Community Dialogue Project at MIT, experimenting with interactive TV programs involving communities through electronic means. Pioneered the papers on touch screen feedback and interactive TV, on new media and cybernetic decision making, on digital identities (Social DNA), and the effects of Artificial Intelligence on Journalism. Lemelshtrich Latar initiated the teaching and research of new media at the Hebrew University and at Tel Aviv University where he was among the founders of the journalism program. Was involved in the Israeli high-tech industry establishing several communications startups in cognitive enhancement employing computer algorithms and data mining of consumer choices.
13 Author Bios xiii Lemelshtrich Latar serves on the academic committee of the Science and Communications Annual Conferences of the Israeli national Academy of Sciences and Humanities, Jerusalem, and as the representative of Israel in the European Media Accountability Team. In 2005 he joined IDC Herzliya as the founding dean of the new School of Communications, focusing on the integration of classical and new media research and innovation. His current research interest is in the effects of artificial intelligence and robotics on journalists freedom and democracy. Nathan Lipson is the Co-Founder of Perpetix, a technology startup which aims to help news organizations survive and prosper by making it easy for them to trade in content. Previously, and for almost 17 years, Nathan was a business reporter and editor at the Haaretz group, first in Haaretz business section and later in its business publication, TheMarker. Nathan holds a B.A. in Economics and International Relations from the Hebrew University in Jerusalem and an M.B.A. from the Tel Aviv University. Horst Stipp After a long career in the Research department of NBC Universal in New York, Horst Stipp joined The Advertising Research Foundation as EVP Global Business Strategy in January He is now EVP, Global and Ad Effectiveness in the ARF s Research & Innovation group. Stipp received his Ph.D. in Sociology from Columbia University and has been involved in media research for 40 years. Before retiring from NBC Universal, he was SVP, Strategic Insights and Innovation, responsible for strategy research and methodological innovation. His publications, in English and German, cover a wide range of topics and he frequently presents at conferences, both in the US and in Europe. Recently, his work has focused on changes in media use and their impact on consumer behavior and advertising in the digital age. Stipp s teaching experience includes a seminar on media metrics at Columbia University s Business School from 2000 to 2010 and frequent guest lectures.
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