Economic Cycles

• Like other industry economies, the media industry follows a series of stages in an overall economic cycle, which is based on a life cycle concept. The very first stage is known as the innovation stage, where the media industry's message is considered and the companies within it are promoted (for example, a specific focus on foreign films). From here, the economy moves into the penetration stage, which is where the public begins to accept the product -- economic growth here is usually slow. The industry then moves into a peak stage, where public attention and revenue are highest, before dropping down a decline stage, where revenue is at its lowest. Certain products and companies within the industry will be at different points in the cycle: Facebook, for example, is at its peak stage, and audio CDs are in decline.
  
  

The Adaptation Stage and Innovation

• Videos can be streamed and shared online with just the click of a button.Man Using Laptop at Home image by evillager from Fotolia.com
  
  The adaptation stage is the final section in the industry's media life cycle -- it is also the most important and most relevant to the present day. Adaptation is the point at which the industry addresses where it is declining and then tries to innovate new technologies and messages for the public (cycling back to the innovation stage). Modern platforms such as Web 2.0 allow users to stream live videos for free -- this can be seen as a direct adaptation to the decline of VHS tape recording. Another modern adaptation is blogging, which has encouraged the sharing of media such as video, audio and images.
  
  

Mobile Technology

• With a rise in affordable mobile technology -- and the popularity of social networking sites such as Facebook and Twitter -- the media industry is preparing itself for a boom in technology, sales and awareness. The industry's economy is likely to rise because of the falling prices in smartphone handsets and the simultaneous attraction that customers have to sharing media with their friends and family. Music tracks, for example, can be bought via a mobile's online browser. The phone company LG has even gone so far as to predict that mobile smartphones will outnumber PC units by 2012 -- this would have significant economic benefits for the media industry if it is fully realized.
  
  

Failing Industries

• The newspaper industry is in economic decline due to the accessibility of news online.newspaper image by Angelika Bentin from Fotolia.com
  
  Some specific industries in media are failing economically. This may be due to the advancements in technology and Internet capability (thus the adaptation stage), but can also be put down to product dissatisfaction or a failure to advertise effectively. Print newspapers, for example, are something that many consider to be in decline. As the newspaper is a key product in the media industry, commentators have put the decline down to online news and the fact that users can browse the latest stories on the Internet. However, the newspaper industry is bouncing back by getting users to pay for online content (otherwise known as a paywall) and monetizing the public's enthusiasm for online news.