“We are living in an era of uncertainty, where disruptions are so frenetic that recent innovations will soon be obsolete,” declared José María Lassalle, Spanish Secretary of State for the Information Society and the Digital Agenda, during his opening lecture at the ESADE-RTVE Media Summit, an event focused on new trends in the media industry. In the current process of constant change, “traditional reference points are becoming unreliable”, so it is necessary to “define new navigation instruments with which to define the principles and values ​​that should govern the digital society of the future, to imagine the collective effects of the new communication channels in digital neighbourhoods, and decide what the citizenry that will govern them should be like,” added Mr. Lassalle.

Future prospects

Paul Lee, Partner and Head of Research for the technology, media and telecommunications industry at Deloitte, commented: “Although we have seen a boom in the consumption of digital content on smartphones, we should think of this as a complement to television, not as a competitor.” Although new actors such as YouTube and social media have emerged, he added, “television will remain strong as a sector, and one of its strengths lies in its scope: it remains one of the best ways to reach millions of people.” On the topic of new commercial models, Mr. Lee warned that content will evolve in accordance with the new consumption patterns of digital platforms and devices. He added that new regulatory frameworks and measurement methods – symmetrical and fit for the new scenario – must be developed.

Giuseppe Abbamonte, Director of Media and Data at the European Commission’s Directorate General for Communication Networks, Content and Technology, noted that European institutions are working to “facilitate access to digital content throughout Europe; create the right conditions for digital services and networks to thrive; and maximise the growth potential of the digital economy by encouraging the production and distribution of European digital products and services.”

New business models

María Barceló, Director of the Executive Master in Digital Business at ESADE, recognised the challenges that digitalisation poses for media organisations in terms of business model, processes and production modes, new formats, content and capabilities. According to Ms. Barceló, there are six major kinds of opportunities for dealing with digital disruptions: “Co-creation, personalisation, immediacy, collaboration, transparency and mobility.”

Jon Galinsky, Head of Newsroom Strategy at the New York Times, explained that the newspaper realised a few years ago that it needed to create an innovation committee and make a firm commitment to digitalisation: “Transforming a renowned traditional newspaper into a subscription-based digital business, a publication that people read on smartphones and tablets, with the aim of offering high-quality journalism and a high-value experience for a global audience.” One of the New York Times’s main priorities is to “provide energetic coverage on the defining stories of our times, to attract new talent and to transform the way we work”, Mr. Galinsky explained. The paper’s objective, he added, is to have 800 million subscribers by 2020.

Rainer Kellerhals, Media & Cable Industry Lead for EMEA at Microsoft, explained that his company had to reinvent its entire business-oriented line in order to address changes in the market. “Our focus is on innovation, because what worked in the past is not good for the future,” he explained. “Our company has become more open and collaborative.” Mr. Kellerhals listed the various lessons learned by the software giant: “The need to listen to customers and take advantage of turning points; expand existing assets and make bold new commitments; change internal beliefs in order to change external beliefs; encourage experimentation and allow failure; and transform the company’s strategy and culture.”

Evolution of consumption patterns

Ignacio Gómez, Director of Analysis and New Projects at RTVE, discussed the fragmentation and segmentation of audiences, the drop in advertising revenues, and the entry of new operators that compete with the traditional players. To a certain degree, he explained, deferred consumption has offset the drop in linear consumption. “For the generalist channels, the biggest consumers are people over the age of 45, but there are programmes on DTT that draw a large audience between the ages of 13 and 26. This indicates that the product is suitable and is reaching a diverse audience. Therefore, what the channels should be doing is creating brands aimed at audiences where we do not have as much of a presence via linear television”, he said.

Álvaro Yusti, Director of the Analysis Office at Movistar+, explained that the decline in consumer data should not be interpreted as “a symptom of exhaustion” because, in reality, “video consumption is booming”. He added: “What we must do is find methods that are suitable for measuring the new patterns of consumption and allow us to obtain real data.” Along similar lines, Eduard Nafría, Director of the Insights and Business Development Area at Kantar Media, observed: “We need to develop methodologies that allow us to obtain a hybrid vision, come up with a good measurement panel, and complement it with other sources of information, such as the census.” Roberto Suárez, Head of the Media Intelligence Service at the European Broadcasting Union (EBU), commented: “Although there is some uncertainty in the measurements, we shouldn’t think that television is going to die.” He added: “We have to keep the population pyramid in mind when considering the media consumption data.”

Mr. Suárez noted that the current consumption figures could suggest “a problem or an indicator of where the opportunities lies” and highlighted the role of the public broadcasters as “facilitators of change”. While new technologies “allow us to focus on the person, the user, and everything that constitutes his or her consumption pattern,” Mr. Suárez added, the media mustn’t forget that “audiences are not everything”. He added: “The role of broadcasters as a public service tool is also to mediate and help solve some of the problems in our societies.”

The ESADE-RTVE Media Summit also featured the participation of Enrique Verdeguer, Director of ESADE Madrid, and Enrique Alejo, Corporate General Manager of RTVE, who together delivered the institutional welcome remarks. Mr. Verdeguer and Mr. Alejo expressed both institutions’ commitment to fostering innovation and spreading digital culture to all levels of their respective organisations.