Analysis


Outline

This module contains the detailed thinking, assumptions and rationale that together define our understanding of the digital economy and provides the foundation for all our market forecasts.

If you need a detailed explanation of how a particular sector within the digital economy will develop, then this is the place to look.

You might want a clear definition of what social commerce is, or maybe you need to understand how internet television will impact the satellite TV industry.

Analysis

Perhaps you need to understand how the structure of the newspaper publishing industry is changing. Or maybe you want to understand the threats and opportunities that are shaping the book publishing sector. You will find all this and more in the Analysis section of TekCarta.

Key Benefits

  • Know your market: It is easy to double count when it comes to the digital economy: for example, at what point does online advertising become mobile advertising? Or vice versa? Is IPTV part of the internet television market, or is IPTV just another type of Pay-TV like cable TV and satellite TV? The definitions provided in this section answer questions like this and many more besides;

  • Understand complex market behaviour: Written in plain English and enhanced with frequent analogies, you will be able to understand for example, why broadcast TV, cable TV and OTT internet TV all share the same underlying business model, or why some of the forces shaping the digital music market are also shaping the book publishing industry;

  • Discover the basis for our market forecasts: A market forecast is no more than a numerical representation of the analyst's understanding of how a market will develop in the future. This information will provide you with a 'behind the numbers' understanding of your chosen market;

  • See new business and market opportunities: We do not just talk vaguely about market opportunities: we frequently describe them in detail as you might find in a business plan. Whether it is digital music, social selling, crowdsourced media rights or targeted television advertising, this section contains descriptions for a range of new business and market opportunities;

  • Benefit from joined-up thinking: All of the material in this section of TekCarta has been prepared by Andrew Sheehy, Chief Analyst, closely supported by our research team. This means that our analyses are all prepared using the same overall market vision and a consistent methodological approach.

Methodology

The digital economy is the most complex industrial sector within the global economy.

The complexity arises not because of the associated technology – although internet, wireless and consumer electronics technologies are certainly pretty complicated, but because we are witnessing the creation of a completely new market landscape.

A generational upheaval is presently under way that is recasting the structure, operation and underlying business models of multiple industries and these changes are taking place all at once, in parallel. This scale of industrial change only happens once in a lifetime, and it is happening right now.

As the world moves from mainly physical media (e.g. CDs, DVDs, printed books and newspapers) to mainly virtual media (e.g. internet television, eBooks, digital music and newspaper subscriptions) an unprecedented degree of change is underway.

Traditional business models are being challenged, new markets are created while others decline, a new rule book is being written and a tectonic shift in the balance of market power is under way with new entrants transforming the competitive dynamics of huge global industries that until recently had been stable, predictable and profitable.

Consumers are lapping it up: the market is overflowing with a bewildering number of digital content services, prices are generally falling and vendors are creating completely new product and service categories. The digital economy is providing consumers with more choice, higher quality and lower prices than at any time in the past – and the process continues.

In short, we are observing the creation of a completely new market landscape.

It is clear that getting a firm grip on the digital economy is a hard intellectual problem. The skills, experience and insight needed to properly understand this gargantuan sector cannot be developed overnight.

One of the advantages we enjoy from covering the whole digital economy is that we have observed a pattern of market behaviour and can follow threads that link one market, say eBooks, to another market, say digital music. Although the various markets comprising the digital economy are clearly very different, there are important similarities which mean forces that shape one market frequently also shape other markets.

We have been able to develop what one could call a 'general theory' of the digital economy that frames and guides all our analyses, allowing us to effectively analyse new markets as they emerge.

Sample Content

Soon to include over 30 markets, TekCarta currently contains analyses for 9 markets including:

New Business Model - Digital Music
New Business Model for Digital Music

Social Commerce
Social Commerce

Over the Top (OTT) Internet TV
Over the Top (OTT) Internet TV