Ovum warns of social media risks

2011 to be the year of market polarisation in music industry

Ovum has warned IT managers in the media industry that using social media as a new channel of engagement is a risky balancing act.

In a new report, 2011 Trends to Watch: Media and Broadcast Technology, analyst and report author, Adrian Drury, warned that using social media was a risky endeavour but one that could pay off if used successfully.

“With the massive audience clustering around platforms such as Facebook, there is great potential for publishers and channel programmers to use social platforms for audience acquisition, engagement and profiling,” Drury said in a statement.

“However, social media also presents a clear threat to traditional media and entertainment platforms as it steals a growing share of audience attention and advertising spend.”

Drury said the market is beginning to polarise, with shared infrastructure models set present an opportunity to the vendor community.

“In 2011, the market will see ongoing polarisation between two distinct classes of technology investment in media and entertainment markets,” he said.

“The first is the broad-based and highly strategic, in many cases employing shared infrastructure models between former competitors – examples include UltraViolet, YouView, HbbTV projects across Europe and digital newsstand projects within the publishing industry.

"This type of project presents an opportunity for the IT vendor and SI community to deliver technology services and potentially play a vital project co-ordination role.”

IT managers looking to take advantage of short-term revenue streams and consumer technology platforms make up the second strand of technology investment, according to Drury.

“The second strand is tactical, driven by product managers looking to exploit audience engagement and revenue streams in the short-term that have been opened up by new consumer technology platforms,” he said.

“These projects are creating opportunity for highly agile SaaS vendors that are able to offer a low-cost route to fast service deployment and experimentation.”

Follow Lisa Banks on Twitter: @CapricaStar

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