Chapter 10

1. What are the three dimensions where the term “convergence” has been applied? What does each of these areas of convergence entail?

The three dimensions where the term convergence has been applied are technology platform, content design, and industry structure. Technology platform convergence refers to the integration of previously separate platform functionalities into a singular digital device. It refers to the development of hybrid devices that can combine the functionality of many different existing media. Content convergence actually includes three dimensions: design, production, and distribution. Content design convergence has occurred when the design becomes measurably different due to the new skills that have been learned for fully exploiting the new technological capabilities. Content production convergence drives content design convergence as new tools are developed for economically producing content for delivery to multiple platforms. Content distribution convergence occurs when the distributors and consumers have the new devices needed to receive, store, and experience the product. Industry structure convergence is the merger of various enterprises into powerful synergistic combinations that can cross-market content on many different platforms and create works that use multiple platforms.

5. What techniques do music subscription services use to enforce DRM?

Most music firms with subscription services use technologies that limit the time period that a song can be played without re-sub­scribing. For instance, songs downloaded from Rhapsody, the largest music subscrip­tion service, will not play after 30 days unless the user pays the monthly subscription fee. And if you don’t pay, you will lose access to all your songs.

10. How has the book publishing industry’s experience with the Internet differed from the newspaper and magazine industries’ experience?

The book publishing industry’s experience with the Internet is very different from the newspaper and magazine industries. E-book editions of fiction and non-fiction books (so-called trade books) have been very successful, yet printed book sales have not collapsed and have remained about the same over time. Professional books, which includes college textbooks, remain almost entirely printed for a variety of reasons. Book publishing revenues have been stable over the last five years.

15. What factors are needed to support successfully charging the consumer for online content?

Content needs to be focused, exclusive, high value, and unique before users are willing to pay for the content. Content that is focused attracts a highly intense consumer who is deeply interested in the topic and willing to pay. High value content generally refers to content that has some financial value but a limited period of utility (old news is no news). High value content more generally might be thought of as content that can be used to help make a decision in the near term. Unique (exclusive) means the content can only be found at one Web site, and is not generally or freely available elsewhere.

20. Name and describe the four types of Internet gamers. Which type attracts the most gamers?

There are four types of Internet gamers. Casual gamers play games on a PC or laptop computer. Social gamers play games using a Web browser on a social network like Facebook. Mobile gamers play games using their smartphones or tablet computers. Console gamers play games online (or offline) using a console like Xbox, PlayStation, or Wii. Often, console gamers are connected over the Internet to enable group play. Mobile gaming attracts the most gamers in 2015.