Documente Academic
Documente Profesional
Documente Cultură
Abstract
Purpose – This study aims to explore if, with increasing consumer empowerment, consumers are actively pulling content through a multitude of
platforms rather than relying on media owners to dictate their product choices. How do media owners and content producers move toward a more
reciprocal and interactive business strategy to deal with the change?
Design/methodology/approach – The study was qualitative and exploratory in nature and utilized in-depth and semi-structured interviews of
media consumers and experts.
Findings – Consumer behavior has changed due to increased product control, in terms of type and occasion, across all income levels. The value of
curatorship has increased and social media has fundamentally changed consumption patterns. Using the Berthon et al. model of response functions, we
found that, content producers often suffer from inertia and operate with an Isolate strategy. The second most common approach is that of Follow or
customer orientation. There is limited engagement with the innovation orientations of Shape and Interact. It is best for the industry to move toward an
Interact model, accepting that consumers sometimes wish to create and at other times wish content to be effortlessly provided to them.
Research limitations/implications – This study adopted a qualitative approach of industry experts and consumers within a single context. The
further implications would be to develop the Interact strategy in more detail, especially toward the end of how to get media providers to change
their current orientations.
Practical implications – Business models of product producers in the new business environment seek to be more consumer-centric. This must not
be done at the expense of an innovation orientation.
Originality/value – There has been a lot of discussion on the need to change business models in the wake of changed consumer behavior. The
current paper provides guidance on how to respond to the new media world.
Keywords Innovation, Market orientation, Computer-mediated communication, Customer-orientation, Consumer empowerment,
Innovation management, Integrated marketing communications, Media business models, New media, New product management
Paper type Research paper
A fundamental question in marketing is how do we create for 2013; Napoli, 2011; Sundar and Marathe, 2010). The media
and capture value from consumers. Are consumers active and provider was the most important role player and acted in the
can they pull products and services as they desire? Do manner of a gatekeeper, and the consumer themselves had
marketers first find out what consumers want and then very little control over how the content was produced,
provide it? Or are consumers passive and uncertain about what distributed or presented (Gobé, 2010). Content entailed
they want and they need to have products offered or pushed information goods such as news, music, film and video.
upon them? In viewing an industry under threat from digital Branded content is that which is produced by a known
disruption, we hope to shed light on how to respond to the production house, such as HBO. These media businesses then
transformative power of new technology. sold their captured audience to advertisers who subjected
Media and its content providers have, for a very long time,
them to mass promotional messages (Jaffe, 2005; McPhillips
held the consumer as a captive audience, forced to consume
and Merlo, 2008). The industry was therefore the epitome of
content how, when and where the industry demanded (Cha,
producer-led marketing strategy.
Technology has ignited a sea change, however. Whether it is
The current issue and full text archive of this journal is available on
to release entire series at once, as Netflix did with House of
Emerald Insight at: www.emeraldinsight.com/1061-0421.htm Cards, or attempts at managing online streaming, as Apple is
attempting to do, or the formation of artist platforms, such as
JZ’s Tidal streaming service, the industry is being disrupted.
Nevertheless, the producers and distributors of online content
Journal of Product & Brand Management have yet to truly get to grips with the changed consumer
25/4 (2016) 373–386
© Emerald Group Publishing Limited [ISSN 1061-0421]
landscape. The strongly held media owner control has slipped
[DOI 10.1108/JPBM-06-2015-0918] away. Brands too have felt the loss of control (Iglesias et al.,
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Kerry Fiona Chipp and Devarpan Chakravorty Volume 25 · Number 4 · 2016 · 373–386
2011), but nowhere has the threat to a business’s core et al. (1999) outline four possibilities of corporate response
operating model been more strongly felt than in media and its shaped across the intersection of the degree of focus on the
content development. New media has democratized the media two orientations of innovation and marketing. The results is
landscape; it has given its consumers power and tools to shape one of four positions: Isolate, Follow, Shape and Interact. Where
their own content pathways. Media consumption has there is low focus on either innovation or the consumer, the
fragmented, partaking of content from different platforms on strategy is said to be one of isolation. Isolate is inherently
different devices (Kant, 2014; Millington and Wilson, 2010), introspective and may be useful during times of stability. If
sometimes simultaneously (Berman et al., 2011; Mulhern, consumer orientation is high but innovation is low, the
2009). Consumers themselves are crafting their own organization is said to have a Follow strategy. Any innovation
schedules, curating their news, binge-watching, creating and here is driven by consumers through market research. During
sharing content among themselves (Bright and Daugherty, times of great innovation but low consumer orientation, the
2012; Mulhern, 2009; Spurgeon, 2005; Vollmer and Shape strategy focuses on the ability of technology to define
Precourt, 2008). Power has moved from producer to human needs and shape behavior. It is only with an Interact
consumer, from mass marketing to niche and from generic strategy that a partnership between customer and technology
products to the individualized. Not surprisingly, the academic, is sought, as the firm is both highly innovative and
and indeed practitioner, discussion is acutely aware of this. consumer-orientated.
The narrative, however, has centered on the phenomenon of The aim of the current paper is twofold:
increased consumer control (Hollander, 2008; Napoli, 2011; 1 to establish empirically the consumer perspective to and
Nelson-Field and Riebe, 2011; Siano et al., 2011; Vollmer and shaping of product and media content; and
Precourt, 2008). 2 to understand how the strategy of media and content
Largely absent from the literature are two key questions: providers has adapted with products and offerings that
First, what is the point of view of the consumers themselves? have been “technologically transformed”.
Indeed, while consumer input is viewed of greatest import in To this end, the work done on consumer control and its
marketing, service-dominant logic as a means of value creation implications will be reviewed, followed by an assessment of
“[has] lacked a robust empirical foundation” (Franzak and marketer response.
Pitta, 2011). Second, what does this mean for strategy? A few The key contributions of this paper have been the interplay
have noted a strategy change from business pushing products between consumer and producer; there is certainly much
to consumers rather than consumers electing to pull products room for the Interact strategy. Producers, however, tend to feel
through the value chain on demand (Kitchen and Schultz, threatened and attempt to monopolize the ability to innovate.
2009; Valos et al., 2010), but none has tested this contention Consumers want to innovate, but not all the time and there is
empirically with media owners themselves. The authors who remarkable heterogeneity in their conceptualizations of value.
have recognized the change, however, have narrowly viewed it Thus, there are times when producers will lead; times when
in terms of consumer acceptance or rejection of messages they will follow. The main route to success is through
foisted upon them (push) and their elective access of corporate ambidexterity; the ability to be both innovation- and
information at their convenience (pull). marketing-orientated.
But the shift is deeper. The move appears to be a change
from a production orientation toward a marketing one: thus,
the current study seeks to understand consumers on their own The age of consumer control
terms and determine how the strategy of the media industry The upsurge of consumer control, autonomy and creativity
has adapted. Berthon et al. (1999), in their interrogation of (Berthon et al., 2007) has been of much interest to researchers in
classic push and pull strategies, conceptualized twin the past 10 years. The advent of Web 2.0 enabled consumers to
approaches to marketing arising out of Drucker’s belief that be increasingly in control of their navigational experiences,
the purpose of a business is to “create and capture” providing them with increased freedom to do whatever they
consumers. One is an innovation orientation, that which want, whenever and wherever they see fit (Hoffman and Novak,
creates consumers; it excites them and engages their 2009; Napoli, 2011). Empowered consumers are growing
imaginations (Berthon et al., 1999). The other is the insensitive to old-fashioned ideas of content that is pushed upon
marketing orientation, which serves consumers already them by the media industry (Constantinides and Fountain,
captured. These authors posit that in a changing world, a 2008). Moreover, content itself has become free. Digital content
degree of organizational ambidexterity is needed, as can be infinitely copied, reproduced and shared without any loss
companies must employ both. It is questionable if the media of quality and at little or no cost. Consumers can share, create
industry and content developers do either: access to and build their own bundles of products as per their tastes
consumers has been the heart of their business. A production (Mulhern, 2009), creating customized and personalized offerings
mindset does not necessarily entail an innovation one and it (Sundar and Marathe, 2010).
certainly has less focus on consumer centricity. Innovation Promotion of available content has also been democratized;
also cannot be conceptualized purely in terms of producer user recommendation and other forms of user-generated
innovation; consumer creativity and invention have become feedback mechanisms often can drive awareness among
more apparent with their increased sophistication and their consumers (Napoli, 2011). Consumers show each other their
ability to interact through technology (Berthon et al., 2007). appreciation of content through ratings, recommendations
How should firms respond? Different strategies are more and reviews on online platforms like Netflix, Amazon and
appropriate for static versus dynamic environments. Berthon IMDB.com; voting on shows like “American Idol”; and
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discussing content on Twitter (Hennig-Thurau et al., 2014). conceptualized in order to deal with the current digital
Word-of-mouth (WOM) recommendations on social media disruption.
and other outlets could have the power to make or break
professionally produced experiential media content like How have the product development and distribution
movies, music and electronic games in the market models responded?
(Hennig-Thurau et al., 2014). The flow of information is Interest and research in business models has been attributed
changing in the media business to originate from the audience to the digital space itself (Zott et al., 2011). Media products
toward each other and the content provider. Consumers are are some of the most affected. There are two main factors
also becoming content producers and sellers to other which have signaled the end of the strategic orientation of
consumers using the internet; they are co-creators and often media product providers. First is the unbundling of content
develop product extensions themselves (Berthon et al., 2007). (Mulhern, 2009) and the second is the fragmentation of
There is a strong sense of psychological empowerment and competition, or what Berthon et al. (1999) understood as
civic engagement (Leung, 2009). Consumers could therefore aggressive competition, which leads to oversupply. By
be said to have become more sophisticated, with more options extension, these authors advise that in the long term, a
and more knowledge. Companies low on innovation cannot consumer creation strategy should emerge. This is inherently
capture the imagination of such consumers. This limits the innovative.
effectiveness of the Isolate and Shape strategies, as both do not Business model response has been conceptualized in the
value consumer input at all. literature in two ways: first, how to harness consumer
Competition has also increased. There is much talk of co-creation, and second, how to create bottlenecks (Evens,
media fragmentation (Ksiazek, 2010; Nelson-Field and Riebe, 2010). The aim is often to revert to the situation where
2011; Webster and Ksiazek, 2012), meaning that providers of consumers can be corralled into content paddocks (Berman,
content, whether this be news, music videos or drama, are
2012; Berman et al., 2007, 2011). Consumer-driven models
faced with a great deal of competition from a variety of
based on capturing the long tail, such as video-on-demand
platforms. The battle is for audience attention; how to create
services, found these to be unsustainable (Evens et al., 2010).
and capture it. Audiences have either become fragmented,
Berman, one of the most prolific authors in the field, envisages
stretched across many different providers or polarized,
a model whereby content is either professionally or
avoiding providers who do not share their world view
consumer-produced and platforms are either open or
(Hollander, 2008; Webster and Ksiazek, 2012). Greater
proprietary. The first cell, “traditional media”, relies on
competition means greater consumer choice, increasing
branded content created and delivered by professionals
consumer sophistication and providing an environment of
through a “walled” conditional-access environment and
oversupply (Berthon et al., 1999). A marketing orientation will
dedicated devices (Berman et al., 2011). The second cell,
not provide much competitive advantage, as customers have
termed “walled communities”, is based on distribution of
become what Berthon et al. (1999, p.43) term “moving
user- and community-generated content also within a closed
targets”. Simply serving them will no longer capture them, as
they can go anywhere and frequently do. The strategy of system. The third model, “content hyper-syndication”, makes
Follow appears to be out of the question, as this relies solely on professionally produced content available in open channels,
high consumer orientation and low innovation. without dedicated access providers or devices. The final cell is
It must be borne in mind, however, that the premise of “new platform aggregation”, reliant on user-generated content
consumer empowerment and access to greater competition has and open distribution platforms. These models are an either/
been typically associated with consumers being able to access and or conceptualization: either they are production- or
afford resources (Weidner et al., 2010). Consumers must live in consumer-orientated. There is no middle ground; there is no
a media-abundant environment and be able to get content from Interaction.
various sources (Dutta-Bergman, 2005; Taneja et al., 2012). Part Indeed overall, there is very little room for an innovation
of the environment is the advent of mobile and smart devices orientation in such models. In the “open” cell, where content
which make digital content available for consumption anywhere. is provided by producers, little is said as to how it is created.
It has therefore been questioned if consumers from lower-income Similarly, consumer contribution is limited to that of “user
segments are as empowered as consumers from higher-income generated content” – the Follow orientation, which does not
brackets (Hamilton and Catterall, 2005). There is a sense that view consumers as innovators of core business processes.
media in these environments is less under threat and old Alternatively, with the persistence of walled gardens, the
strategies and business models are still valid. Isolate orientation would enable media product providers to
The question thus arises: With the rise of consumer control continue with a product orientation. The question therefore
and media proliferation, to what degree can any one media remains is to what extent are innovation and consumer
provider gate-keep products and content to a captive audience? creation activities used by media providers? The current
Gatekeeping has been fundamental to the status, utility and literature has not suggested an answer.
functioning of traditional mass media, whether this be print, The current research investigated two propositions: First,
television or radio (Sundar and Marathe, 2010). How has the do consumers wish to be active creators of media products?
industry adapted? Surely this is the time for Interact, the strategy Are they more sophisticated and need different offerings from
which prioritizes high innovativeness as well as high consumer what has traditionally been provided? Second, have media
orientation? We turn now to how business models have been owners adjusted their strategies accordingly?
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Developing strategies for new media environments Journal of Product & Brand Management
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Developing strategies for new media environments Journal of Product & Brand Management
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Emergent Themes Respondent Responses RQ 1: Consumer control RQ2: Are all consumers RQ3: What are
Changing Consumption From able to Pull Content Businesses Doing in
Push to Pull Response
Lack of Choices
Expensive
Decline of Traditional Media
Frustration with Current Choices
No Control on content being pushed
wherever he pleases. He believed there is a lack of free content on If you don’t give me those options I am going to go somewhere else and get
those options. (Miss N)
financial news services in South Africa, so he gets this kind of
information from international websites. Even for him, consumer Even older consumers reported that new media had changed
content communities play a very important role by providing the way they obtained products:
recommendations for movies, books and other content that he Yes it has changed for me to listen to music, reading the news or getting
can peruse: weather has changed as there are many more options now. (Mrs C, 50 years)
When you use traditional media outlets you are kind of forced to see what is
There was interplay between the traditional and new world.
there and kind of believe that but with new age media outlets if you see a news
article on a topic on one website, you can quickly go onto to another website to Even though all consumers mentioned that they liked to be
verify, so you can compare. Whereas with traditional media for example the 7 in control and pull content of their choice, the level of
p.m. news, you get the news and that’s it you can’t verify it. (Mr G)
control and pull that consumers exercise was sometimes
I like the idea that I know what I want and I can go and get it, and not based on the individual or the situation. Mr G mentioned
someone selecting it for me. Like I said I don’t like the [cable TV] giving so
many channels when I only want one thing. (Mr N) that he always liked to be in control of his content choices;
to him, ease and speed of access to the content equated to
I don’t want to wait, I want to know it right now
a good experience. Miss N conversely mentioned that she
I have more control and watch what I like if I don’t like what is coming on values the experience of the content more and so she will
TV I can switch channels and if I do not like anything on TV, I can get
things on my PC or phone. So definitely I think I have much more control even wait for quite some time to watch her favorite TV
in terms of getting what I want series or movies on pay TV channels. She believed that
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watching it on television was a good experience. Mrs M and How does the business model adapt? The problem of
Mrs C both mentioned an interplay between control and monetization
pulled content and times where they were happy to let Despite this reliance on producer innovation, or at the very
media providers present them with content. They would least a production orientation, there were acknowledged
also follow the set schedule rather than watching at times of tensions arising from technological disruption. Tension
their choice. Schedules offered a curatorship function, as between paid for, professionally created products against
they provided a limited choice from which they could pick the “free” content of the internet was certainly present.
something to consume. In the words of Mrs M: Media houses felt that their key asset, the consumer, was
moving out of their reach. There was no sense of creating
[. . .] sometimes you just run out of ideas of what to do and prefer that there consumers, by innovating content and formats that
are options from which I can choose. When I just want to relax and sit back captured imagination. Most hoped to continue to serve
and enjoy some mindless TV watching I prefer it to just play, like if I am at
home alone and doing house work I prefer the TV to be just on and now and
them in the traditional manner, which relied on consumer
again I just look at it to see what is happening and it makes the house feel captivity, which is slipping away. Isolate and Follow appear
not so quiet. (a companion) to be the main models, even though the environment is
known to be dynamic. The predominant concern is loss of
The tension between curatorship and control was more revenue, as Box 2 demonstrates. The experts believe that
prominent for the experts. Box 1 demonstrates their strong their essential offering is content provision and content can
emphasis that creation is an activity for the producer: “they do be accessed anywhere without cost. In the absence of other
not want to create their own schedules, a schedule must be means to generate value, traditional providers are unable to
created for them”. Most were strongly of the opinion that capture consumers.
producers innovate; only one admitted that the industry was Experts mentioned the need to change media industry
not enabling consumer voice: “we avoid asking them what business models a few times, but what these changes should
they want”. The industry solution appears to be to offer entail was not unpacked. Some experts said that consumer
products whose success hinges off awareness rather than empowerment can be also seen as opportunities for business to
consumer creativity: “we need to advertise it more so people leverage. Most importantly, business model innovation was
know about it”. stressed as the way forward, but the shape and format of this
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Box 1. Industry beliefs that only producers innovate Box 2. Business model concerns
Producers create Media Expert: Media Planner
Media Expert: Public Broadcaster: So in a sense for a large The revenue models of media businesses are based on advertising
swathe of [. . .] they do not want to create their own schedules, and as and when advertising tapers off it is going to impact their
a schedule must be created for them so that it works perfectly for business models. So I think any of these business models whose
them. primary revenue source is advertising are in a precarious space.
We decide on the storylines, we decide on the content to give to For [cable TV company] try to create stickiness to the premium
consumers, because a lot of times consumers do not package they give you all these add ons like Box office and
know what they want. And we sometimes take a guess at it Walka [both consumer demand based products] etc. But then a
and decide on what we think will work with consumers. vidi service comes along and gives access to content whenever,
Consumers by using your content exhibit that they have trust in wherever and they also open their platform up and you are not
your content. [emphasis added] limited to being a premium subscriber only.
Media Expert: Pay TV Provider: Push is essential. For Media Expert: Marketing/Media Consultancy.
example - most people don’t know that [cable TV company] has The content owners are saying that this is our asset and we have
a free VOD service, and we need to advertise it more so people invested money in it and we want the bigger slice whereas the
know about it that is push and with that awareness consumers consumer is saying that I will just go get it for free somewhere
will then pull whatever content they like. else. So it is a very challenging business model to make money
I also think that a lot of times people don’t know what they want out of.
until they see it. The whole problem is that a lot of these media companies are
Push is the acquisition and discovery whereas Pull is the competing against free. And you cannot compete against free,
retention so the strategy of acquisition and retention need to go that is a no brainer.
hand in hand. Also as a consumer, taking myself as an example We are in a state of flux where brands are realizing the
there are lots of instances where I consume content that is pushed importance of digital and customized offerings and somewhat
to me and I would not have been aware of it if it was not pushed, move away from the standard above the line (ATL)
and a lot of times I am pushed content that are not relevant to advertising.
me but I will still go and watch them sometimes if they catch my Media Expert: Print Industry
attention on an impulse. So push is exactly that where we try to Another challenge is now days young people are so used to
pander to users’ needs and impulses. getting content for free that trying and telling them to pay for the
So I do not think consumers are in control as of now, because as content is difficult.
of now media providers only look for pockets that they can And we also see that ad spend in newspapers is declining along
monetize and some sections are not self-evidently profitable with TV and Radio, where businesses are now increasing their
monetarily. And this is what scares me about the digital spending on below the line campaigns on the internet as well as
revolution as there is no controlling mechanism where we can say promotions, giveaways etc. to attract customers.
that for the common good of all the people, do not do this or do
this. Here it happens as and when the money flows . [emphasis
added]
some sense that consumer-created content on social media,
Media Expert: Print Industry: In South Africa I don’t think
consumption occasion as well as the time of consumption
we are there yet [Content Pull By Consumers]
could be leveraged in some way. The pay TV industry expert
Producers avoid consumer creativity.
said that businesses are presently moving away from a silo
We avoid asking them what they want instead we give them a
mentality where content, delivery mechanisms and consumer
list of content that we have available and ask them to choose
insights are compartmentalized across different parts of the
amongst them.
media value chain, and are now beginning to cater to the
omni-channel consumer. Both the pay TV experts mentioned
that they are implementing avenues of branching into multiple
platforms, both paid and free, to provide access anywhere and
was not known. The suggestions offered were all tactics, which anytime to their customers. Thus, there is limited consumer
tweak certain parts in content delivery mechanisms or co-creation and much discussion of using consumer insights
providing content on multiple devices, or the use of consumer to shape offerings. This appears to be more of a Follow
preferences and behavior for better targeted advertising. Using orientation.
so-called “big data” to track consumer habits and provide
content and advertising catering to these habits was opined by
Discussion and conclusion
experts as a new golden opportunity. Such data were also a
tool for increased customization of content offerings and thus Are consumers in control?
a potential mechanism for capturing audiences. Consumers have changed. There has been a shift in power
Producing and providing content that the consumers can from producers to consumers and now consumers have
relate to was also viewed as important. Local content was acquired more control and influence over what they consume
viewed as a point of differentiation against an international (Shankar et al., 2006). Content is tailored and personalized
onslaught of content, as evidenced in Box 3 below. There was (Bright and Daugherty, 2012), and all consumers wished to be
a sense of audience fatigue with global content. There was at the center of the media environment (Daugherty et al.,
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media technology for entertainment, but they also use it to try audiences (McPhillips and Merlo, 2008) and are reluctant to
to improve their life by educating themselves, getting unbiased change.
news and communicating with others on issues pertinent to Some changes center on greater consumer centricity that
their lives. While not recognized in media research, this digitization has enabled: “Big Data” (George et al., 2014)
outcome matches literature on consumers from lower-income generated during consumer interactions with multiple
markets who have limited resources and thus are forced to be platforms. Data provide a more granular understanding of
creative with these resources to extract maximum value (Kay the consumer to customize products according to their
and Lewenstein, 2013; Mason et al., 2013; Subrahmanyan preferences, which could then be monetized by product and
and Tomas Gomez-Arias, 2008). brand placements. Media managers have also responded with
tactics such as giving programming in big blocks on television
Has business recognized control and how has business to binge-watch, rather than following their usual schedules
responded? (Jenner, 2014). These are all firmly fixed in the marketing
Media businesses have traditionally been the conduits and orientation, not that of innovation (Berthon et al., 1999), and
procurers of professional content (McPhillips and Merlo, it is consumers and new technology which have forced the
2008). They have acted as the gatekeeper and broadcaster of change. Interact strategies are consequently consumer-driven,
this content to consolidated large masses of audiences with most traditional players not innovating themselves.
(Hennig-Thurau et al., 2010; Sundar and Marathe, 2010). There are some moves toward innovation, but these are
Revenue was generated from selling these captured audience largely created by the technology itself, suggesting a Shape
eyeballs to advertisers (Lister et al., 2009; Zott et al., 2011), orientation. The creation of social experiences around content
who could then target them with mass advertising is created by the ability to engage with the content on multiple
(Nelson-Field and Riebe, 2011; Webster and Ksiazek, 2012). touch points (Berman et al., 2011). Similarly, the ability of
Consumers who paid for content in one-off payments or users to curate their own content for customization is a feature
through subscriptions were a secondary source of revenue of the technology (Bright, 2014). If producers were to truly
(McPhillips and Merlo, 2008). In this model, the media embrace the Shape possibilities of new technology, digital
business was the dominant player in the landscape, as it had convergence needs to be embraced more fully. Convergence is
control over the content and the audiences to whom the where content flows seamlessly across various platforms
advertisers needed access. (Jenkins, 2008); thus, there needs to be integration and
We found that the response to the threat of consumer cooperation among multiple platforms, devices and media
control in the new technology environment was met with some industries to create convergent media experiences (Bardhi
degree of trepidation, particularly so from more traditional et al., 2010; Berman and Marshall, 2014; Shankar et al.,
media players. This is not surprising, as Berthon et al. (1999) 2010). Media experts also acknowledged this in the need to
pointed out, the more deeply embedded a strategic orientation provide seamless content experiences to consumers and to get
is, such as the product one of the media players, the greater the rid of the silo mentality that is currently prevalent.
reluctance to change. They appear to be largely of the Yet the outcome is not so neat; not all consumers embrace
“Isolate” and “Follow” strategies. A large degree of inertia is complete control and many of them have occasions where
present, which is symptomatic of such approaches (Berthon communal consumption overrides personal preferences.
et al., 1999). The need to change is accepted, but what is Again, the best strategy which explains this is one of Interact.
proposed is limited and often harks back to more Consumers are not homogeneous; the product landscape is
product-orientated models, suggesting the persistent presence fragmented. The greater the fragmentation, the greater the
of an Isolate orientation. They have invested a lot in their content search costs. Efficient and effective minimizing of
delivery systems and business models to push content to their such costs, as Netflix’s model attempts to do, speak to the
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value of curatorship as a product rather than necessarily from the new media landscape, it is many of the traditional
the content itself (Ojer and Capapé, 2013). Spotify, an online content providers who have the greatest change to make.
music streaming service, caters to this pull by matching the Many are still not certain of the road ahead. They often fear
content to suit consumers’ personal music tastes (Warr and rather than embrace consumer creativity.
Goode, 2011) and creating a social content consumption
experience for all of its users (Berman et al., 2011). Both Practical implications
businesses are adaptable and more representative of an Interact
orientation, which is a mix of innovate (create) and capture. Vollmer and Precourt (2008) in their book “Always On”
However, traditional media businesses like public stated that consumer control has generated a “mutiny in
broadcasting and newspapers have yet to successfully come up media” (p. 79), as it freed consumers from the shackles of
with business models that can help them steer their strategy traditional media control. Media consumers now have more
entirely from push to pull. It therefore still remains media outlets at their disposal than ever before. They are
questionable if all businesses in the media landscape can adapt multi-tasking, diversifying and moving away from traditional
to content-pull to the same extent. mediums to new digital ones. Their communication has
The contribution of the research is to put forward a strategy changed; so has their means of interaction with content
for product and platform development in media in an age of providers, content and each other (Gironda and Korgaonkar,
digital disruption. First, we find that the Interact strategy is 2014; Pynta et al., 2014). The current research has found that
highly suitable to help the media industry navigate through there is still a role for the media industry. They can beat “free”
these times of turbulence. Second, the key components of if they are able to create value. Value creation comes from
such a strategy are a mix of consumer and producer consumers, whether in their active design of products and
innovation. This means that the media industry can work with platforms (Berthon et al., 2007), or through their data, which
consumers to create value which engages and excites current enables customization and curatorship. Value in a diverse and
and potential market segments. Value creation is certainly no fragmented landscape could come from enabling consumer
longer in the domain of producers, although we found that management of the bewildering set of choices they face. Most
most traditional media providers are far from that realization. successful media models, embraced by the likes of Netflix,
Third, we provide input from consumers themselves who do operate with the Interact strategy. The company works with
not wish to be creators constantly. There is certainly room for and for consumers to enhance their consumption experiences.
producer innovation, as well as producer market orientation. The clarion call has been that consumers are rejecting
We found that not all consumers desire the wide open world content, communication and marketing that are irrelevant to
of content generated or curated by themselves or each other. them and are opting for media that give them more of what
They acknowledge that having access to a world of choice can they want (Anderson and Wolff, 2010; Truong and Simmons,
be as disempowering as it is empowering. Sometimes they 2010). Having sophisticated consumers who are selective,
wish to just follow a schedule of content curated by others. skeptical and demanding, and who possess power over their
Fourth, we found that consumption occasion is important. media choices (Hanna et al., 2011; Kwon et al., 2012), heralds
Some content is fixed in time and has an enhanced experience the era of the “creative consumer” (Berthon et al., 2007).
when consumed with others on certain occasions. Thus, When such individuals are harnessed, this can aid the business
consumer choice is not unlimited nor is it singular. We found in serving a customer-centric and innovation orientation
that consumers value immediate gratification and quality to simultaneously.
different degrees and this impacts the nature of their Traditional media product producers are still far from
interaction with producers and content. Finally, technology embracing this change. In the interim, they would do well to
has eroded the differences between low- and high-income becoming more consumer-centric in their approach and revisit
consumers. The ubiquity of smartphones has enabled business models to interrogate if their previous orientation of
low-income consumers to become more empowered, have Isolate still serves them in the current environment. Social
access to more information and use their resources more media enables them to focus on consumer experiences instead
wisely. Perhaps consumer empowerment was felt at this end of of being just focused on selling them standard products or
the market the most because it was where empowerment was services (Lamberti, 2013; Shah et al., 2006). Consumers need
most needed. to be partners; their creativity should be embraced.
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Kerry Fiona Chipp and Devarpan Chakravorty Volume 25 · Number 4 · 2016 · 373–386
the role of double jeopardy (Bandyopadhyay and Gupta, Cha, J. (2013), “Do online video platforms cannibalize
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Truong, Y. and Simmons, G. (2010), “Perceived Corresponding author
intrusiveness in digital advertising: strategic marketing Kerry Fiona Chipp can be contacted at: chippk@gibs.co.za
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