Final paper, Trends & Strategies in the creative industries (Erasmus University 2010)

1. Erasmus University Rotterdam
Sanne Jansen, 336251
January 2010

2. Table of content
Preface.…………….. ……………………………………………………… 3
Summary........................................................................ 4
Introduction................................................................... 5
Theory: new media, digitality & interactivity................. 6
Theoretical approach: remediation……………………………. 7
Case study: digitization and the magazine industry……. 8
Further research: future of the magazine…………………… 9
Financial proposal………………………………………………………. 11
Sources………………………………………………………………………. 12
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3. Preface
This business proposal is written in order of Sophie Spindler’s creative direction company to research if the digital interactive media have influ-
enced the traditional format of the glossy magazine. This paper was presented to the board on January 15th 2010 by Sanne Jansen, researcher at
Erasmus University.
All the information given in this business proposal is strictly confident and only meant for the ones responsible within this specific project. This
information can only be supplied to third parties after written approval of the Erasmus University.
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4. Summary
The traditional magazine format is challenged by the emergence of digital communication technologies, like the internet
(Manovich 2001: 33-34). The internets no-pay culture has led to a decline in subscriptions and advertising income for the maga-
zine industry. The struggling magazine companies that do not know which direction to take are the purpose of this research pro-
ject and further research to define a new direction for the magazine industry that is profitable. This paper includes an insi ght of
the impact of new media on the magazine industry and some recommendations for further research to determine the direction
of the magazine industry for the future. The central question of this project;
“Have digital interactive media influenced and pushed and reinvented the structure of the classic magazine format? And what
does the future magazine look like?”
Could be answered with yes, they influenced the traditional magazine format because digital interactive media are becoming
more and more important in our daily lives. Online content is mostly free and therefore more appealing for people than paid
content (print magazine). The interactive features internet offers, allows people to express themselves instead of being a passive
anonymous reader. Change is evolutionary though and not revolutionary.
So, relying on the theory of remediation (discussed on page 7), the older medium will still be visible, the new techniques can be
seen as an extension or continuation of a technique that already existed. Therefore online content should be adding something
extra for readers and not replace the print magazine yet. To define how big the influence of digital interactive media is and what
the future magazine should look like, further research is needed. The areas for further research are; economic and technologi cal
research but also audience analysis, workshops and risk management. The types of research in these areas are discussed on pa-
ge 9 and 10.
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5. Introduction
The first Dutch women’s magazines date from the 1920’s and were only for the elite that were educated and could read
(http://vrouwentijdschriften.nl/)
Since then women’s magazines have made some mature changes. The focus of magazines on women as housewives and family
caretakers has switched towards the approach of the ‘New Woman’, who has a career and is financially independent, towards
targeting the teenage girl that loves the latest fashion (Gough-Yates 2003: 3). Nowadays there are no taboos anymore and the
cover as well as the inside looks more colorful than before. These changes in approach and creation of new markets did not
happen from one day to another, advertising companies paid attention carefully in changes of cultural practices and traditions
of family life and on the other hand new technologies influenced these practices and traditions (Croteau & Hoynes 2003: 321).
Other things remain the same and so are glossy magazines since they started to appear oriented on the advertising industry.
Ads cover a large part of the (print) magazine and the articles are promoting the ideology of consumerism as well, they are
about beauty, shopping and trips to far away destinations where more can be bought (ibid.: 188-189).
Secondly, magazines might still engage to some of the same subjects as they did in the 60’s. Fashion for example is still a
popular topic. The difference can be seen in the approach of these different subjects. The content has to be more practical,
shorter and faster. Clothing for example, has to be beautiful but also practical, homemade dinners have to look nice but also
quick to make. (http://vrouwentijdschriften.nl/)
The changes that we see in the form, production and consumption of magazines have all been influenced lately by the
developments of new media, especially computer based technologies (Croteau & Hoynes, 2003: 321). From the eighties on
our world has changed from a place with a limited use of computers as communications devices and a limited number of
broadcast tv channels to a place where mobile media, computers and commercial television are part of our daily life (Lister et
al., 2009: 33)
With the internet, information is spread very fast to all parts of the world and gives us the ability to find information from
many alternative sources. The available data seems limitless. The internet gives us also the chance to communicate with peo-
ple from all over the world, whenever we want and without the need of being physical present. Virtual communities are no
longer geographically based and people become virtual friends because of the possibility of electronic interaction (Croteau &
Hoynes: 11-13).
The most visible effect of online (free) content on the magazine industry is that subscriptions have declined and advertising
income has dropped (http://www.technologyreview.com/blog/pontin/23489/). Because of digitalization people do not longer
have to pay for information. Because news websites, online magazines and also peer production can offer the same amount of
information for free. The website PaidContent found out that only 5% of the British public is willing to pay for information. The
insecure position this business finds itself in, leads to the central question of this research project;
“Have digital interactive media influenced and pushed and reinvented the structure of the classic magazine format? And what
does the future magazine look like?”
In the following paragraphs first the definitions and features of the concepts that I am addressing in this research project; new
media, digitality and interactivity. After that I discuss the theory of remediation of Bolter & Grusin (2001), which I will rely on
to explain the relationship between ‘old’ and ‘new’ media. I will use this theory and my findings about digitization to formulate
a first answer to the central question. This paper concludes with some directions for future research, including economic and
technological research, workshops and audience analysis.
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6. Theory
Theory: what are digital interactive media?
To answer the central question of this research project it is important to formulate the meaning of digital interactive media.
Digitality and interactivity are two of the key characteristics of new media that are discussed in Lister, Dovey, Giddings, Grant &
Kelly (2009). Other characteristics of new media are; hypertextuality,
virtuality and they are networked and simulated (Lister et al., 2009: 13). In the following paragraphs the definition of new media
and digital interactive media according to Lister et al. and the features of these concepts.
New media
When people use the term new media they usually refer to many different things like; the internet, digital tv, a blog or a virtual
environment of a computer game. But these are all just a range of occurrences; the term actually means a wide variety of
changes in the production, use and distribution of media. These changes are either technological, textual, conventional or cul-
tural (Lister et al., 2009: 12-13)
Technological innovations have for example changed the characteristics of mass media. Satellites, fiber-optic technologies, cable
television and especially the computer have helped to create a new media environment with lots of new products and formats.
One of the developments because of new technology is the creation of more customized media products for niche populations
instead of the mass audience. Developers are also fusing various media like television, stereo, digital video and computer into
one single media center.
These new technologies change social patterns but they do not determine the evolution of media. Technology is just a factor
that shapes the development and uses of media (Croteau & Hoynes, 2003: 12-13).
Digital media
Digital media as opposed to the traditional analogue media are also called electronic media and work on digital codes. In the
digital media process the physical properties of the input data are transformed into numbers, these data can take many differ ent
forms and are most familiar to us in computer applications.
However, these digital signals have spread to all different kinds of information sources, dvd’s, for example, provide digital videos
and cd’s provide digitized music recordings. This is an extension to the traditional analogue media of a technique that was a l-
ready in place, from a physical artifact to signal (Lister et al., 2009: 16-17).
Digital media, like the internet, in opposition to traditional forms of mass communication, like glossy magazines, have blurr ed
the distinction between individual and mass audiences, because it is used for individual communication as well as mass commu-
nication. The line between producer and receiver is blurred, everybody can produce his online media content, using videos, te xt
and images. Communication is also no longer one way, from a known sender to a mass of anonymous receivers but has become
interactive (ibid.: 303).
Interactivity
The term interactivity refers to a more powerful sense of user engagement with media texts, a greater choice for the user and a
more independent relation to sources of knowledge. The user is not a passive consumer anymore but a user that has a wide
range of possibilities that are offered. (Lister, 2009: 21-22). Until the twentieth century publishers of media products had the
power over the distribution of media products and they could control who could become a professional. Because of the emer-
gence of the new media group of users this order is disturbed; consumers are becoming producers.
Lister et al. (2009) discusses in his study on new media two different types of interactivity; hypertextual navigation and im mer-
sive navigation. Hypertextual navigation means that the user creates an individualized text by navigating through a database, like
the internet or the hard drive of a computer. Immersive navigation is when the user navigates through representations of space
or a simulated 3D world. Both types of interactivity rely on the database that the user is using (ibid.: 22).
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7. Steuer (1995) addresses the term interactivity a little different. In his article ‘Defining virtual reality: Dimensions determining
telepresence’ he describes two forms of interactivity; content interactivity and interpersonal interactivity. The first type of
interactivity refers to the control consumers exercise over the selection of editorial content. The online environment allows
users to interact with the medium itself by clicking on hyperlinks and moving from one website to another one. The second
type of interactivity involves person to person communications mediated by the network, such as e-mail and chat room
discussions (Biocca & Levy, 1995: 45-46).
Theoretical approach: Remediation
The approach taken in this research project of the impact of digital interactive media on traditional media (the glossy
magazine) is Bolter’s and Grusin’s theory of remediation (1999). Bolter & Grusin are not interested in the start and endpoint
of things but in the connection and attachments between things. They describe Remediation as the representation of one
medium in another one. Hypermedia applications are therefore always acts of remediation because of the implementation of
older media into a digital space (Lister et al., 2009: 47, 58).
There are different forms of remediation. The first one is highlighting an old medium in a digital form. On many websites, pi c-
tures can be downloaded by people that visit the website. The computer is now used as a new means of gaining access to
these pictures (older material) but not as a replacement of photography. In this way the digital medium wants to erase itself
and give the audience the same experience as looking at a real picture (Bolter & Grusin, 2001: 45-46).
Remediation can also be used as an improvement to the older medium. An online encyclopedia can offer next to text and
graphs also sound and videos. In this way it challenges the older medium (ibid.: 46).
Another form of remediation is refashioning the older medium entirely but still marking the presence of the older medium
and maintaining therefore a sense of multiplicity (ibid.: 46-47).
The last form of remediation is that the older medium gets incorporated by the new medium. However, the act of
remediation does assure that the older medium can never be entirely abolished; the new medium always depends on the
older medium in acknowledged or unacknowledged ways (ibid.: 47).
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8. Case study: digitalization and the magazine industry
What does digitalization mean for the glossy magazine industry?
The process of digitalization, especially the internet, has jeopardized the position of the glossy magazine industry in many
different ways. First of all, online content is more appealing because people can get it, most of the time, for free. One of the
reasons why people have to pay for print content is because of copyrights. But news websites, online magazines and also
peer production can offer the same amount of information for free. Especially young people do not subscribe to magazines
anymore but go to the magazine’s webpage during lunch breaks (Stahl, Schafer & Maass, 2004: 59). The website
PaidContent found out that only 5% of the British public is willing to pay for information ( http://paidcontent.org/).
The interactive feature of digital media really challenges the traditional magazine format. The internet allows people to
express themselves. People can live in a virtual world that they create themselves rather than being anonymous passive
readers (Lister et al., 2009: 68). Everybody can make his own website, post his video on youtube, blog or meet new people
through social networks. This changes the relationship between audience and editors because people control what they de-
fine as news and or not depending only on what the editors have defined as news (Bucy, 2004: 103). One of these online
developments that affect the magazine industry is the rise of style blogs. Instead of printed women glossy magazines, the
blogs discuss issues that are more realistic and inspiring for readers. These blogs are written by ‘regular’ people and do not
just show pictures of extremely beautiful celebrities. The mix of high end fashion and street wear is a common topic for style
bloggers and an inspiration for many readers. Examples of popular fashion blogs are; http://gossip-style.blogspot.com/,
http://www.elementsofstyleblog.com/ and http://beautyaddict.blogspot.com/2005/08/who-is-addict.html.
Immersive navigation is a form of interactivity, another point in which digital media challenges print media. Immersion is a
term that describes the experience of new technologies whereby the user can interact in a computer-simulated environment. This can
be either a simulation of the real world or a fantasy world. Immersion is more the state of mind where a person looses his awareness of
his physical self and is surrounded by a virtual world. This world feels real but is not. The virtual dressing room on the Cosmopolitan
website, where you can make your own avatar that looks just like you to go and takes you shopping is an example of how immersive
navigation works for an online magazine.
Relying on the theory of remediation that an older medium can be highlighted in a new medium, improved, refashioned or
incorporated but never vanished away completely, the first answer to the central question of this research project;
“Have digital interactive media influenced and pushed and reinvented the structure of the classic magazine format? And
what does the future magazine look like?”
Would be partly yes, they influenced the structure of the classic magazine format but they did not reinvent it. This theory
suggests that digital media technologies do not break completely with traditional analogue media. The older medium will
still be visible, the new techniques can be seen as an extension or continuation of a technique that already existed. The tr a-
ditional magazine format is visible online in its topics and ideology of consumption but websites can offer extra’s, like blogs,
chatrooms and a virtual dressing room. The emergence of internet requires the magazine industry to be more creative and
add something extra for readers and not replace the print magazine yet. The possibilities with digital interactive media are
endless and are part of our daily life so the magazine industry should definitely focus on that too.
This research project included an insight of the impact of new media on the magazine industry. In the next chapter some
recommendations for further research to determine the direction of the magazine industry.
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9. Further research: future of the magazine
More research has to be done in various areas to get an answer to the central question of this research project. How big is
this influence of digital media on the traditional magazine format? It is commonly known that magazine subscriptions and
advertising revenues have declined since it is easier and cheaper to read or advertise online. So, should the magazine
industry therefore focus more on their online content and decrease their prints? To answer these questions it would be
helpful to make a SWOT-analysis that charts the strengths and weaknesses of print magazine. The objective of this analysis
should be to target women and get them interested in reading print glossy magazines again and to attract advertising com-
panies.
Economic research
Economic research has to be done to determine how glossy magazines can keep on existing. Benkler (2006) discusses in his
book The wealth of networks several ideal type business strategies for the production of information. The core of these
strategies is simple; cost minimization and benefit maximization (Benkler, 2006: 42) .The economic researcher will further
analyze these business models and choose the model that matches the magazine industry. Analyzing the use of cross media
(the integration of different media types used by and through different media platforms) and how this could attract readers
and advertisers is another area for economic research. As well as the way social media can be used for selling subscriptions..
Social media can also help by creating brand awareness and to inform the targeted audience. The last two points will be re-
searched by a social media specialist..
Technological research
An interesting area for research is QR codes. QR codes are codes embedded in print and link cell phones to specific
websites. This could be really something ’new’ for the magazine industry to focus on for the next five years (if the technol-
ogy makes it possible) since it provides print content and online content.
Technological research has to be done in the area of mobile devices, so the software to read QR codes can come
pre-installed on European cell phones. This research area contains economic research too to see how much it costs mobile
phone companies to pre-install this software on all their cell phones.
QR codes are really big in Japan and there are even magazines that exist out of QR codes only, like the magazine tada
gadget.. With QR codes a print magazine can become something the reader can browse and buy which corresponds to the
ideology of consumerism the magazines promote. For advertisers these codes are handy because they can measure how
many people respond to their ads and monitor the results of their investments. QR are not just usable for advertising, they
can also add something extra to the print content, like videos, pictures or other articles. QR codes offer the comfort of read-
ing a magazine on the train with the possibilities of interactive reading, this can attract new readers
(www.businessoffashion.com/2009/).
Audience analysis
This type of research will give insights in the needs of the glossy magazine readers. Before changing the traditional magazine
format or arranging the magazines website differently it is important to know what the target group wants.
There are different methods to define the needs of the client like; interviews, surveys, logfiles analysis, user test and head
word analysis. My suggestion is to use the interview to verify what the target group wants. Therefore my company will
interview several magazine readers. It is also interesting to see how people use the website of the magazine and how they
read the print version. To analyze this I would recommend the user test whereby we observe readers and website users.
Of course the final choices of the best methods will be made in consultation with Sophie Spindler direction company only.
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10. Further research: future of the magazine
Risk management
Due to the fact that the implementation of ‘ new’ tools takes certain risks, my company is also pleased to offer an over-
view of all the risks that can occur if the magazine industry takes a new direction.
Workshop
The research of the future of the magazine that is further away from now (for example; the year 2030), should include a
workshop with representatives from the creative industries, (young) readers, researchers and advertisers to define what the
‘new’ magazine should look like, what changes need to be made to attract more readers and advertisers. Creating ‘personas’
that represent different groups could help to create a vision of a future endpoint. Personas are archetypal representations of
audience segments, or user types, which describe user characteristics that lead to different collections of needs and behav-
iors The methodology of backcasting is the method that evaluates preferred futures, this method is focused on the creation
of a preferred future out of any constraints. This is often used to define complex long-term developments that include social,
economic and technical changes. And could therefore be a tool for the magazine industry to make plans for the future. In
this method four steps have to be followed to define this preferred future;
defining the scope and time frame, defining a future state, working backwards and identifying milestones as important indi-
cators and Impact analyses of milestones and development paths (Leendertse, Manschot & Korte, de, 2009: 5)
On the next page you will find the interim price list for further research, my company hopes on a pleasant collaboration.
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11. Pricelist
Economic research
Junior economic researcher, hourly rate € 40,00
Senior economic researcher , hourly rate € 100,00
Total costs for economic research, estimated 130 hrs. € 8.200,00
(80 hours jr researcher, 50 hrs sr. researcher)
Technological research
Junior technical researcher , hourly rate € 40,00
Medior technical researcher, hourly rate € 65,00
Senior technical researcher , hourly rate € 100,00
Total costs for technological research , estimated 180 hrs. € 11.450,00
(80 hrs. jr. researcher, 50 hrs. md. researcher, 50 hours sr. researcher)
Sociological research
Social media expert , hourly rate € 100,00
Total costs for social media expert, estimated 80 hrs. € 8000,00
Workshop € 8000,00
Audience analysis
Interviews, user test, costs per interview/test € 25,00
Risk management € 500,00
Expendable project costs € 750,00
Expendable start-up costs € 750,00
Total costs € 37.650,00
All the amounts do not include taxes.
This quotation is valid for 30 days, until February 15th 2010.
The kick-off and three other meetings are included in the project costs. The amounts do not include travelling expenses,
€ 0,19 per kilometer.
Additional work will be done for an hourly rate of € 75,- , always in consultation with the client.
Specifications and supplements can be added to this quotation during the planning and execution of this research project.
Start up costs and 50% of the research costs will be charged in advance.
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12. Sources
Benkler, Y. (2006) The wealth of networks: how social production transforms markets and freedom. New Haven: Yale University
Press.
Biocca, F. & Levy, M. (1995) Communication in the age of virtual reality. New Jersey: Laurence Elbraum press.
Bolter, J. & Grusin, R. (2001) Remediation: understanding new media. Cambridge: MIT Press.
Bucy, P. 2004. Second generation net news: interactivity and information accessibility in the online environment. The international
journal of media management 6 (1&2), 102-114.
Cesare Rivoltella, P. (2008) Digital literacy: tools and methodologies for information society. New York: Higi publishing.
Croteau, D. & Hoynes, W. (2003) Media society industries, images and audiences . Thousand Oaks: Pine Forge Press.
Gough-Yates, A. (2003) Understanding women’s magazines; publishing, markets and readerships. New York: Routledge.
Leendertse, M., Manschot, M. & Korte, de, M. (2009) Creating the ideal ICT learning space. Delft: TNO Information and
communication technology.
Lister, M, Dovey, J., Giddings, S., Grant, I. & Kelly, K. (2009) New media a critical introduction. New York: Routledge (second edi-
tion, first published 2003).
Manovich, L. (2001) The language of new media. Cambridge: MIT Press.
www.businessoffashion.com/2009/
http://vrouwentijdschriften.nl/
http://paidcontent.org/
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13. Critical reflection
This part of the paper includes some critical notes on the research I have done. Why did I choose certain theories?
What is strong about this paper? And what difficulties did I have writing? These comments are meant for my teacher
to read only and will not be send to my client.
The traditional question from Sophie Spindler was; ‘Have digital interactive media influenced and pushed and rein-
vented the structure of the classic magazine format?” Since this is a question you can answer with a simple yes or no, I
tried to find an answer on the way in which digital interactive media have an impact on the traditional magazine for-
mat. I added “And what does the future magazine look like?” Because to me it seemed like this would be a good fol-
low-up question, it is more interesting for the magazine industry to know what they should focus on to keep their
brand than just pointing out in what way digital interactive media influence the traditional magazine format.
The theory of Remediation that I haven chosen as the theoretical approach of this paper is just one way to interpret
new media. There are many
different theories to choose from and it is really difficult to define what influence a certain medium has on another
one since the boundaries between different media are blurred. You cannot say where one ends and a new one starts,
they are all connected. That is also why this theory interested me the most because Bolter and Grusin (2001) are not
interested in the origins of things but how things are connected (Lister et al., 2009: 58).
I should note that the prices on the pricelist are just fictitious. I have no idea what a junior, medior or senior re-
searcher would charge and no idea how many hours, weeks, months they would work on a research project as this
one.
At last I want to add that I am contented with the structure of my paper, the layout and the introduction and
theoretical part. I am less satisfied with the chapter ‘further research’ because it still remains kind of vague. There are
so many areas for research that can be included in the topic of this paper that made it really difficult for me to choose
which area for research should be started with first and what to include and what not to include. I decided that the
area of economic research should be of greatest importance because the magazine industry is a for profit business
that relies on advertising money and subscriptions. The areas for research are not explained into details because I am
not familiar with all these themes.
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