The rise of YouTube, online video and sponsorship deals like the one involving Paris Hilton mark a generational shift in the consumption of media. Among younger generations, all those hours spent
watching TV and reading newspapers are in decline--and will probably never be the same. Young people are finding the same news, see the same images, and listen to the same music on their computers. In
fact, because many can do all three at work, media consumption has probably increased all around. The rise of online advertising shows us that there is money to be made from the media consumption
shift, but it's not quite what it once was. The Internet isn't limited by broadcast spectrum, and the low barrier to entry has brought prices down. It also costs less to create and upload content,
which is precisely why YouTube and online video have become so popular. That said, these online video sites aren't anywhere close to putting Hollywood out of business. In fact, it may never be that
home-video productions push $200 million Hollywood pictures to the margins. It could be a different story for television. But the trend is clear (just in case you haven't heard this a million times
before): the future is online media, and it will be participatory. Users want to play their part in content creation.
Read the whole story at Financial Times »