New Industries Flagging
Deuze and Stewart (2011) argue that despite the surge in usage of online media and creative industry products by consumers, the industry has yet to be able to effectively profit from this proliferation,
“the very people whose livelihood and sense of professional identity depend on delivering content and experiences across such media seem to be at a loss on how to come up with survival strategies—in terms of business models, effective regulatory practices (for example regarding copyrights and universal access provisions), and perhaps most specifically the organization of entrepreneurial working conditions that would support and sustain the creative process needed to meet the demands of a global market saturated with media.”
It seems even new industries are struggling to keep up thriving business models, as in the case of companies like Groupon and Living Social who pioneered the daily deals market. The entire draw of these companies, price promotion, is turning out to be an unsustainable model in the long run for the companies and their participating businesses. The companies are responding to this downturn by laying off employees and ousting existing leadership in hopes that more “seasoned” CEOs will be able to turn the companies around. Whether or not this is an effective means for a solution is yet to be determined, but if we look at other media industries, these companies will need a lot more than just new leadership and slimmer staffs in order to survive in this tough economic culture.
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