What’s digital really worth?

Yesterday, when I was in a meeting with Egmont, I started to think about something: What’s digital really worth? Is digital really just going to be the poor guys medium of choice?

I started wondering about it, because Egmont studies show that youth doesn’t value digital. Not that they don’t consume or like consuming it, but they would never dream of paying anything for it. And what does that say about the value of the media?

If the perceived monetary value of digital media seems to be zero for some, it could have something to do with the production price of digital goods also being close to zero. When the production cost is close to zero, we produce more. And what we produce become commodities. And a commodity has an ever declining value.

Why wouldn’t this be far-fetched? Because physical still triumps over digital. Youth may not buy digital media or media as such, but they have no trouble buying a lot a physical goods. Clothes, bags, drinks, whatever really. Because physical goods give status - digital does not. Or perhaps media does not. Because the level of real differentiation among media is so little that in reality it drives the overall perception of value down. Just a thought.

It wouldn’t surprise me the slightest if we see a future, where digital is the free part of the media palette, while physical media will still be driving the revenue. Because it’s tangible to own, have and show off to your friends. But I also think that the key to this future for media companies is greater differentiation among offerings.

Vad NU! is a consultancy company owned by Mads Kristensen and specialized in helping clients take advantage of the business opportunities created by new media. Click to learn how I can help you and your company.