For a long time, we’ve been creating too much content, so much so that I think that we’ve already reached Peak Content, the point at which this glut of things to read, watch and listen to becomes completely unsustainable. There hasn’t been enough ad revenue to sustain it for years and, with 2015 ending with a rush of acquisitions, consolidations and funding rounds with eye-watering valuations, 2016 will mark the beginning of a shake out. Market crashes are the tsunamis that sink, if not all, then a lot of boats, and it’s time to take strategic action.
One of the few workable business models in this age of digital disruption has been to produce as much content as cheaply as possible. But flooding a glutted market only leads to a deflationary spiral until it becomes completely uneconomic to produce that commodity. It is a simple matter of economics, and it doesn’t matter whether that commodity is maize or media.
For the full blog read Kevin Anderson in The Media Briefing