The impact of new media and new technologies can be seen in every aspect of our day to day lives. On a personal level they are impacting how we shop, bank and even socialise and on a business level they are reshaping business models and causing a range of organisations to rethink the way they interact with their customers.

The free flowing transfer of information is moving us closer and closer to total market transparency. This has been developed along with new handheld technologies which allow users to access sources from anywhere at anytime. Consumers are now only a few clicks away from detailed price comparisons. Traditional geographical barriers are being removed, aided by more efficient and effective distribution networks. The use of the internet and related technologies is also allowing companies operating in niche markets to expand their markets and generate substantial income from goods and services which would not have been viable without the use of these technologies.

One of the primary impacts of digital technology has been the ability of consumers to customise their content. Services such as iTunes, Sky+ and 4oD have given viewers and listeners the platform to consume the content they want, at a time which suits them, removing the influence of traditional broadcasters and the effectiveness of TV and Radio advertising. The extension of these schemes and the impact of TV over the internet (IPTV) and podcasting etc, threaten to completely remodel the business model for both advertisers and established broadcasters such as the BBC and ITV. The role of the producer is also changing as the rise of sites, such as Youtube, facilitate the transfer of niche and viral content between consumers.

The business model for those operating in the music industry has come under scrutiny as the internet revolutionises the way consumers acquire content. More and more music is being downloaded from the internet, often illegally. In response companies such as Apple and Napster attach digital rights management blockers to the content in an attempt to ensure that individuals do not share content they have bought. Despite these attempts, the market for illegally downloaded music and video content has continued to grow through peer-to-peer file sharing software, leaving consumers open to viruses and malicious content. Some artists have responded to this trend by offering initial content for free in hopes of attracting a fan base. Social networking sights such as MySpace are allowing performers to use their personal pages to promote their work. The band Radiohead have taken this a step further by allowing fans to name the price they are willing to pay for their new album, “In Rainbows.” Another band, The Charlatans, have made their recent single, “You Cross My Path”, available for free to those who download it. 

The influence of the internet on media has also extended to printed news. Analysis shows that young people increasingly look to the internet and 24 hour news channels to provide their news, territory traditionally occupied by daily newspapers. This has caused leading figures in the industry, including Rupert Murdoch (Head of News Corporation who own BSkyB, Fox and News International, amongst others) to call on the industry to evolve and adopt the mindset of the new ‘digital natives’ that have grown up with the internet. He made particular reference to the changes in the advertising revenue model and engaging with the reader on a more even level, rather than the traditional ‘top down’ approach to journalism previously adopted by editors and journalists.

The negative aspects of new technologies have also been on display. Recent moves by the Chinese government, to restrict the access their citizens have to ‘sensitive materials’, have demonstrated the ability of central organisations to manipulate content for political or economic purposes. It is also particularly worrying that this censorship has been achieved with the cooperation of large multinationals such as Google and Yahoo. The issue of how content is regulated and who takes responsibility for this will be one of the key issues in the development of the internet and the content which is communicated via digital means.

The challenge to the region appears simple, how do we provide our population with the skills required to thrive in the digital age and how can we use these new technologies to engage with all areas of society?

Fact File

• Music downloads are rising in popularity and look set to overtake CD sales as the primary influence on the UK charts. In April, record company EMI, announced that music downloads had increased by 150% in the past year.
• 2006 is set to be the first year where the internet takes over from newspapers as the most popular form of advertising.
• In 2005, UK shoppers spent just under £10bn shopping online. In Europe, total internet spending rose by 51% in 2005. There are more than 600m consumers online worldwide.