The act of purchasing and consumption is not new. The process of buying decision is a theme which is attractive enough that it attracts many researchers although various scholars currently clash on it (Bellman, Lohse & Johnson, 1999). The consumer of the twenty-first century find multiple sensory and emotional stimuli that allow him to "spice up" his shopping experiences and consumption. The power relationship between consumers and distributors has also changed for the benefit of the weaker party. Internet as a new medium allows better access to information, without loss of time or heavy exertion. By becoming an active partner, consumer behavior will be increasingly difficult to handle, since it can be better informed than before and comparison of prices would be easier to make.
The traditional entertainment media retailers are facing difficulties and challenges with the boom of e-commerce. The traditional entertainment media and consumption patterns are now in a phase of metamorphosis. The changes are evolving so quickly that it is impossible today to determine what will be the future of traditional entertainment media retailers. However, one thing is very certain, if some drastic measures have not been taken by traditional entertainment media retailers then they will not survive in storm of e-commerce and social media.
Impact of Internet on Traditional Entertainment Media Retailers
The music and entertainment media has suffered very badly due to Internet and E-commerce. In 2007, Institute for Policy Innovation estimated that the annual cost of piracy of recorded music for the U.S. economy has risen up to 12.5 billion dollars. It would lose 71,060 jobs a year, 26,860 have been created in the music industry and 44,200 in retail and other sectors more or less related to this branch. However, no reliable study reflects the benefits and added value generated by the illegal downloading. Today, after being undermined and discredited by all the Internet technologies (especially threatening they do not control) the major record labels are positioned at high speed on the growing market of paid download. Following the runaway success of the iTunes Music Store from Apple, the number of legal download platforms quadrupled with a total of 230, including 150 in Europe. To convert the pirated downloads into legality ones, big deterrent campaigns were conducted, including in 2004 with a display "Download Me legally" campaign, with 14 artists including Louis Chedid, Zazie, Corneille and Eddie Mitchell.
After a lot of work for communication, discussion between producers and distributors, as well as a renegotiation of contracts with artists including new provisions relating to the sale on the Internet, the music industry today offers a range of much more suited to the needs the consumer. The public is well aware of the online offerings. Driven by competition laws, the players in the music industry have invaded the market with offers more complete and competitive.
New consumption patterns appear with the development of convergence. In a highly competitive environment, it is essential today to be present on the Web. The traditional media entertainment retailers face the challenge of integration and restructuring of internal skills to adapt to the variable of e-commerce. The difficulty of this operation lies in the fact there is a generational ditch in such retailers. There is therefore a real "digital divide" in the various departments of an entertainment media and media retailers. The real for these traditional media retailers lies to join the editors in a project to support multicasting (Beardsley, Johnson & Manyika, 2006). But the editorial teams are not the only ones to have to evolve, advertising agencies also must adapt to the changing demands of advertisers. The groups must also find solutions to these new variables, passing mainly through internal training.
For TV programs such as sitcoms or action series, the concept of media chronology has no meaning, as well as intervals of diffusion between the different countries. One of the main reasons for illegal downloading on the Internet is that the programs are available at the same time everywhere, and they do not depend on the choice of a medium that holds the broadcast rights. By most, the issue should be revisited upstream producers must integrate more fully multilingual forward scattering have cushioned the program on the territory of origin, even if it requires more leading funding and risk-taking from the producer and broadcaster.
Poised to become a true mass medium, the web is gradually imposed in communication budgets of advertisers. Considered by most advertising agencies as a complementary and alternative media, it offers new possibilities and improves the coverage, and profitability pressure campaigns. A recent survey shows that of 25% advertisers, 78% of companies using electronic channels, web marketing and email (Witkowski, 2007). There are several reasons for this popularity. Firstly, the removal of printing costs and postage has been divided by 5 or even 10 the cost of a direct marketing campaign. On the other hand, there is a quick to implement, providing opportunities for customization, and a reactive tool, since only 2 to 3 days is enough to know the impact of web marketing and e-mailing. Currently, online marketing budgets represent 37% of total marketing budgets for retail enterprises; their main goals are customer acquisition and / or generation tracks (Ville, 2009). Excluding social media marketing that focus on the number of visitors, marketing managers are basing their assessments on their marketing efforts on online revenue, such as sales. In 2007, online sales by the private sector in Canada accounted for a meager 2% of total sales operations (Ville, 2009). Moreover, companies have increased purchases made online by 4% (48% in 2007 against 44% in 2006). Online sales by sectors engage in multi-trade remain much smaller than those to consumers. (37.7% vs. 63.3%). The trend persistently low rate of online marketing will have significant impact on competition in the near future, resulting in reduced competitiveness. Canadian exports of online sales have been declining since 2002.
On the other hand, groups of e-commerce retailers adopt aggressive strategies of global integration, in order to hold all the value chain of media, from creation to distribution. Diversification of these players competes with traditional media, because boundaries are rather vague and the market is far from structure today. However, this is a transitional period, where the market is still unstructured, with relatively virgin territory, where many opportunities are bound to come. The power and finesse of the strategies of major players determine the territories of traditional as well as modern media retailers.
Nevertheless, faced with the migration of their audience and their advertisers to the Internet, most of the traditional media are struggling to adapt to the digital challenge. While in the United Kingdom, the BBC announced in September 2007 that it was cutting 1,800 jobs to integrate its information activities radio, television, Internet to adapt to the challenges of the era digital, the French media often remain on static positions. On a commercial level, the distribution channels that is more elegant and efficient on the Web, as they demonstrate deficiencies in traditional media. In general, the media rarely have a clear vision of the challenges associated with deploying multimedia, these unknown necessitate taking a strategic risk. Form of financial investments, reorganizations that are rarely borne by the latter. Thus, given the large movements made by enterprises from the Web, the mainstream media are waiting for maturation of the market, hoping for them it is not too late.
Global e-commerce industry sill shows lively signs of being ripe in terms of facilitating and accommodating greater investment. According to statistics that have been disclosed by e-Marketer report the retail industry sales through e-commerce in the US alone will boost from $188.1billion to $269.8 billion by the year 2015. In order to compete with e-commerce in such competitive times it is essential for traditional entertainment media retailers to adopt aggressive strategy.
For television, most experts agree that the VOD, or Video on Demand, will not kill traditional channels but, instead, will enrich the content. The proliferation of channels will certainly have an impact on the audience share but these enjoy credibility, loyalty and especially financial power which enable them to always be a market leader. Thus, it is likely that traditional media retailers will defend their leadership by focusing on ownership rights for events that can actually bring a mass audience the content. Consequently, integrating intelligently new opportunities for convergence in their strategy, traditional entertainment media as well as media retailers will exploit new opportunities.
In the context of approximation of technical means of communication, entertainment media retailers operate comparisons between broadcast media, online presence has become a necessity for survival. The time is now to cross-over to allow a media brand to capture a prosecutor, regardless of the receiving means, with information available anywhere and at any time, in accordance with the definition of the acronym ATAWAD: Any Time, Anywhere, Any Device. This online presence is considered an expression of the brand, retaining its traditional support attributes. Thus, this web presence is a relay which enriches the benefits of the original brand.
This paper reveals that traditional entertainment media retailers are facing a plethora of challenges due to the expansion, advancement and popularity of e-commerce. The doubts are numerous for traditional media in an environment that evolves very quickly, where it is not possible today to describe precisely what will be done for future, both at technological level, commercial level and at sociological level. However, it is certain that the modern media evolve on abstract notions such as multiplicity, interactivity and proximity. All these factors are more opportunities than threats for traditional media. Thus, the only solution for them is to adapt to new variables and play their brand and financial powers. The migration of consumers and advertisers on the Internet and mobile change the situation. Thus, the media must integrate these new media into their overall strategy.