Transforming Products
Digital media is on the rise in the last 10 years, slowly taking over traditional tangible media. Many consumers are now using digital media as their are choosing digital media as their medium of choice. Industries that are affected by this shift include newsprint, recorded music, movie production, and book publishing. A lot of the giants in these industries are finding themselves adapting to shifting needs and are becoming more flexible in their pricing and financial strategies. But, the impact of this trend in the digital age is not limited to the businesses directly affected. It reaches all of us, having a very real influence on the economy as a whole. Newsprint None of the printing industry has been impacted by new technology as much as the newsprint department within the print industry for commercial purposes. Between 1997 and 2007, newspaper circulation dropped by 164.5 millions to 149.5 million. Is it possible that the American population simply dropped interest in the news? However, the number of readers (regardless of the medium) is increasing each year. The fact is that more and a lot of readers are choosing to fulfill their craving for information using alternate sources, primarily the internet. Visit:- Newspaper circulation has been in a downward trend, USA Today - the most widely read newspaper in the U.S. - reported in May 2009 an increase of 12% over the previous year's growth in traffic for its online publication, Page views for the entire site had increased by 75%. Rupert Murdoch, owner of The Wall Street Journal and other major publications, reportedly has predicted that print newspapers will become extinct in 20 to 30 years. They will be replaced with digital news formats. The rising trend of turning to the internet for news has already put several of the biggest print news sources into bankruptcy circumstances. It is widely believed that in the near future, a lot of other big players in the news printing industry will encounter similar challenges, leading to an eventual shift to digital-only versions of their publications. A change like this could lead to the closings of printing facilities across the nation. Recorded Music Production Music recorded is also shifting towards a largely digital market. The demand for music, like the demand for news, remains at an all time level. In addition, as with music, more and more people are using digital media, mostly the internet, as their go-to resource for all things music. The digital music business grew over the course of 2008 by an average 25%, reaching a 20% share of sales of music recorded (up from 15 percent for 2007). Meanwhile, the sales for CDs has been steadily decreasing (down 20 percent in the initial quarter of 2007 by itself). In the first half of 2009, it was reported that CDs made up only 65% of all music sold. Industry experts predict that by the year 2011, sales of digital music will be higher than the sales of CDs. This trend is certainly an excellent thing for companies such as Apple iTunes and, that are the top two choices among consumers of music downloads. But manufacturers of CDs are facing the hard reality of an industry that simply does not love them in the same way anymore. Certain CD manufacturing plants in the U.S. have shut down operations and have sold millions of dollars worth of production equipment at discounted prices to overseas producers. Film Production Recorded Two of the latest digital revolutions have occurred in the recorded film and book publishing industry. While digital downloads of movies as well as cable pay-per-view and other on-demand features are still largely dominated by physical copies, U.S. consumers' demand for the new digital age is mirroring that of the news and recorded music industries. In 2008, rental and sales of DVDs and Blu-ray discs dropped 5.7% however online sales and rentals grew by 73%. The trend is likely to continue, with a final drop in revenue of over 6 percent in 2009. Contrary to the recording industry, sales and rentals of DVDs and Blu-ray discs aren't in danger of being surpassed by rentals and sales of digital films. But it is likely that, in the coming years, the tipping point will be reached as consumer demands change. Book Publishing Electronic editions of the books are becoming increasingly available from sources such as as well as Barnes & Noble. According to The Association of American Publishers the market for digital books during June of 2009 increased 150% over the same month in 2008 and surpassed $12 million. The Los Angeles Times reported that an online poll indicated that 1 in 5 shoppers were planning to buy an electronic book reader over the Christmas season. The e-book trend is heating to the surface, publishers of book face from the consequences of this shift. Although retailers of printed books are able adapt to changes in the market by offering digital versions of their books however, alternatives are not as readily available to the publishers of books. Book publishing (printing) businesses are experiencing the same financial challenges that news printers are facing. The reality is that it is much more profitable for companies to offer electronic versions of their products rather than the traditional, physical ones. All in all it is a noble fight is being waged to adjust to evolving consumer needs. But stalwarts of these industries, despite their ongoing efforts, are faced with a financial burden with tangible consequences, such as the elimination of thousands of jobs , and the replacement of billions dollars worth of production equipment.

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