At the 46th FIPP World Media Congress held earlier this month in Cascais, Portugal, entrepreneurship and business transformation emerged as central themes. In this roundup, which will form part of our Congress report, media owners are urged to think laterally, innovatively and to view transformation as a process, not an end point.
The transformation and evolution of media is speeding up, with Generative AI acting as the warp drive. Despite the shifting sands, the zeitgeist at Congress was of excitement at the opportunities that lay ahead rather than fear over what could be potentially lost.
This mood was perfectly captured by Innovation Media’s Juan Señor who reminded everyone that, “You will not be replaced by AI” before adding, “But you will be replaced by someone who can use AI”.
One Congress delegate remarked how it reminded her of the mid 1990’s, “I remember lithographers, typesetters and designers fearing for their jobs at the dawn of the internet age, but those who adapted to use Adobe, Quark and InDesign flourished.”
With thirty years of digital transformation under our belts, publishers are better placed than ever to seize opportunities, act quickly and adapt to rapidly changing circumstances. We know the drill.
It’s All About Influence, Jim: How Creators Are Shaping the New Economy
By the very best estimates, from Goldman Sachs no less, the Creator Economy is estimated to be worth upwards of $250Bn and is set to double to almost $500Bn by 2027.
This transformation is happening in front of our very eyes, and on the Auditorium stage, media analyst Simon Owens explained that creators are collectively, “Pulling down tens of billions of dollars which would otherwise have gone to newspapers, magazines, and TV networks.”
He added, “Creators are competing with media companies on everything from advertising spend to subscriptions, yet they’re still treated as strange curiosities, as if hundreds of millions of consumers aren’t relying on them heavily for their entertainment and news. Patreon alone is paying $1 billion a year in subscription revenue to creators.”
Owens urged media companies to collaborate with creators for mutual benefit, “There’s a huge opportunity for media companies who can identify creators that are still on their way up and partner with them to help bring their businesses to the next level. Media companies need to start thinking of themselves as talent agencies. With the right incentive alignment, both sides can benefit in a huge way.”
He ended with a warning to legacy media companies, “The biggest threat is that star journalists will leave just when they reach maximum value”, adding, “Create better financial incentives for your talent, then journalists will stay and help you grow.”
Wizards of content: Reinvention is obligatory
In terms of adaptation and continuous evolvement, few media companies worldwide can measure up to 7awi, one of the Middle East’s leading digital media platforms.
Founded in late 2012 by Anas (Andy) Abbar, the platform’s success lies in its relentless adaptation to ongoing market changes. Today, 7awi owns and operates 18 verticals, attracting millions of monthly visitors and boasting a social media reach of over 100M monthly followers.
To a surprised audience, Abbar said, “We don’t care about traffic and we don’t care about advertising” but he added, “We’re fully transparent and each month we publish our numbers, our demographics, etc, so our brand partners know exactly our reach.”
“We focus on our strengths – content creation and content curation – and we are essentially both a publisher and a content agency. This unique positioning has allowed us to differentiate and stand out in our market.”
He concluded by disclosing how 7awi is approaching AI, “By the end of this year, 90% of our evergreen content will be AI generated alongside a clear, transparent disclaimer.”
He added, “Only our Editors-in-Chief will be allowed to publish this AI generated content.”
Waterfall, Agile or Lean?
Numerous methodologies exist to help media businesses navigate organisational change, with ‘agile project management’ as the front runner because it can at short notice move in different directions to those initially envisaged. However, effective oversight and governance must be a top priority.
The theme was taken up by Sarah McConville, Co-President of Harvard Business Publishing, who said that the advent of generative AI would, “Result in major cultural shifts happening that media organisations need to be ready for.”
She continued, “Organisational changes are coming to media brands that are starting to grapple with these AI tools and use them in different ways. It’s important that companies understand this and identify leadership roles to help drive it forward rather than just back into how you’ll be using these tools.”
Mark Russell, Global Operations Director at Vogue, explained that when it comes to business transformation, media companies must understand it’s not about final goals, “Don’t expect to complete the transformation, it’s a process not an end point.”
Referring to the profound business transformation occurring at Condé Nast he continued, “Progression doesn’t have to mean perfection, and please note that resistance comes from unlikely sources – turn them into your champions. At the heart of our business transformation is our cultural transformation.”
He concluded his presentation by saying, “Ultimately, there are far greater opportunities now for media brands, and our people, than at any stage before.”
He’s right.
