The New Economics of Media

Overview

The three sources of Media 2.0 value creation are revelation, aggregation and plasticity. This gives rise to fundamentally new kinds of economies like distributed economies of scale, coordination economies and production economies of scale and scope. These economies require radically different product strategies like openness, intelligence, decentralization and connectedness. In order to realize these economies and produce the dominant Media 2.0 strategy there is a snowball effect and realizes increasing returns to adoption within the niche.