Digital media refers to the electronic and usually interactive media that now comprise the fastest-growing--and phenomenally profitable--sector of most developed economies today. (Hyperlink to white page on interactive)
In literal terms, digital media is anything encoded or transmitted using a series of 0s and 1s. Virtually any form of communication—text, sound, speech, film, music, and images of all kinds—can be digitized, reproduced and shared almost instantaneously, at little cost and with no degradation in quality, via personal computers and electronic devices. (Hyperlink to white page on digital convergence)
The existing and potential business applications for digital media are practically unlimited, crossing or merging business sectors, incorporating existing industries and creating entirely new forms of communication and commerce. Some of the most commonly referenced digital business categories include console games, social networks, digital marketing, virtual worlds, and the digital exploitation of traditional media such as film, TV, and music—to name just a few.
But any list of existing digital business somewhat misses the point. Digital technology and the world of digital media changes and grows constantly and rapidly. New opportunities arise fast. Just a few years ago nobody had heard of an iPhone. Today there’s a whole industry around creating iPhone apps. From a business point of view, any list of what constitutes the digital world will be obsolete the minute it’s finished.
What does this mean for business? In a word, opportunity. The digital economy is young, vibrant, and growing at a dizzying pace. The rules for what works and what doesn’t are constantly rewritten as entrepreneurs forge new paths to success.
Technology is continually creating new opportunities for those with the knowledge and vision to see the potential and move to take advantage.
New business models are also being created daily, sometimes based on this new technology but just as often based on new ideas, on seeing the possibilities that digital media offers to provide new experiences or services to an ever-growing global market.
As well, digital media frequently offers a new spin on well-established, traditional business models. Advertising, television, and music, to name just three, are undergoing fundamental revolutions based on new opportunities and abilities created by digital media.
The digital media business sector is deep as well as wide. Analysts frequently divide it into creators of content and enablers that convey content the target audience. There are many opportunities for growth and innovation in both areas. (Link to sector breakdown and perhaps the PWC report, or the new one due out this month)
In this new and fast paced sector information is a crucial element of success. Business owners and entrepreneurs must understand new technology, business models, strategies, and opportunities as they arise.