Media companies look into the convergence as a mean to the compensate drop in revenue. The convergence occurs in many directions. A first example is the newspaper industry that encloses thematic annexes, print in full color on smaller sized paper, and include video in the on-line publication. This is a shift towards the magazine business and the TV business. A second example is the magazines industry that encloses thematic annexes and publishes actual news with video in the on-line publication. This is a shift towards the newspaper business and also towards the TV business. These kinds of shifts occur in all branches of the media industry. There is a continuous battle for the same consumer.

Recently, media companies are facing new challenges. Device manufacturers sell feature rich devices to consumers and start to control the distribution channel. These devices bring a superior consumer experience and shift the value from the content itself to the device and the distribution channel. Over the last decade this happened to the music industry, the value shifted from the traditional record labels to the device manufacturers (e.g., Apple) and their distribution channel (e.g., iTunes). A similar change is now happening for the other branches of the media industry, such as broadcasters and publishers.

In a first step media companies start to publish their content digitally to the new devices through the new distribution channels. They respond to a forced act of urgency to avoid missing the looming future opportunity. Multiple examples are around, such as publishers throwing content on tablet devices for reading in pdf format or broadcasters throwing video clips on the same tablet devices. The consumer adoption leads to substitution of the traditional channels by content consumer through the use of digital devices. The substitution results in lower revenue models, as consumers are not willing to pay a premium for such service. Actually, there is a major gap between the presentation of the content on the feature reach devices (such as tablets) available from the traditional media companies and the device capabilities. The consumer himself has a different expectation than what is provided. He is seeking for the ultimate experience that his device can bring by exploiting the full device capabilities. Thus, the simple repurposing of content has no additional value and does not lead to the unwillingness to pay a premium. Therefore, media companies have to focus on the consumer experience they can bring. Traditional media companies created in the past their strong brands through the creation of formats exploiting the full potential of the distribution channel. For example, broadcasters brought live-video of news and sports on TV, levering the full potential of the entire production and distribution chain.

Nowadays, traditional media companies think that content is king and forget that repurposing of the available content does not bring a new consumer experience. Where are the creative capabilities of the content industry? Is creativity not their crown jewel? Creativity can fill the gap and lead to the expansion of the new revenue models by embracing the new distribution models.