ABSTRACT
Business models are one of the internet’s most discussed and debated elements. The new environment they operate in, however, leaves them often as one of the least understood aspects of the web. Traditional ‘old-style’ entertainment business models are being forced to change or die. Before examining the implications arising from the shift from ‘old’ to ‘new’ media, it is key to set out: a) how the overall media environment has been changing; and b) given the changing universe, what a ‘business model’ actually means. Of course, in its simplest form, it means a way of doing business that throws off cash. The associated model should demonstrate how those revenues are generated by marking where that business is positioned in the value chain. As we will see later, however, the value chain itself is being significantly restructured through the radical nature of the internet and associated change. This chapter examines both the changing media environment and the challenge of new business models. It looks at which sectors are most likely to succeed in adapting, but, most importantly, views the entire new landscape with fresh eyes that throw up a myriad of opportunities.
