The bar for strategic innovation has been raised over the last four years. The flood of capital and the lack of guideposts in the heyday of the dot-coms have been replaced by financial discipline and higher standards for innovation. Although significant investments in new technology have slowed, an in-depth vetting process and a more conservative philosophy will most likely help these companies avoid costly yet unprofitable acquisitions. Video on demand, blogs, podcasting, and search advertising are just some of the new digital opportunities that have emerged since 2000, yet their sustainability is still unknown. There’s no doubt media executives have now accepted the inevitability of digital media and its impact on their business. It’s now a question of how to peg investments in accordance with consumer acceptance of new technology while meeting the desire of consumers to have greater control over when and how they interact with content.
Everette E. Dennis ([email protected]) is the Felix E. Larkin Distinguished Professor of Media and Entertainment Industries at Fordham University’s Graduate School of Business in New York City.
Stephen Warley ([email protected]) is general manager of TVSpy.com, a Web site specializing in television industry issues, trends, and career information.
James Sheridan ([email protected]) is managing director of Interpositive Media, a developer of marketing and communication strategies for media and nonprofit industries.