The Media Monetization Cycle

The media monetization cycle (MMC) is something that I’ve come to observe, experientially, from more than 30 years of working in information and communications technology.

In short, as the chart shows, experience has shown that new media go through three cycles of value creation: content, community, commerce.

bbv - MMC hand-drawnAnd, while all three are essential at some level, to the medium’s success, the quest for media companies and those that build on top of the medium (like the web) is to see how quickly they can reach the commerce curve.

Knowing that all new media go through the MMC, your strategy should be to anticipate the commerce curve and build a platform for facilitating the transition from content and community as easily as possible.

For applications development and infrastructure planning, this has broad implications for everything from user ID management, to client- and server-wide applications payloads, to schema development and database distribution, and more.

Ideally, you want to build all of those things, knowing that the medium will eventually get a place where commerce is a principle driver of activity across it, if the THE principle driver.

Understanding the MMC is more important than ever, because the pace of technology adoption has become faster than ever, as reflected by the chart from Singularity.com.

bbv - tech adoptionIf you are in a profession, like I am, where you are in the business of seeking to launch innovative new ventures that leapfrog or even transcend (a nicer way of saying “disrupt”) incumbent technologies, then the more that you build – from the very beginning – towards the inevitable maturation point of the MMC, the better positioned you will be.

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