Analyzing media industry networks

One of the more interesting and original aspects of the Future of Media Report 2006 was the Media industry network analysis. I have broken this out as a separate piece here, as many people interested in industry network analysis may not have delved into the report. This research was performed by Laurie Lock-Lee of CSC, who has done much innovative work on industry network analysis. Below is the Media industry network analysis section of the Future of Media Report. Note that this analysis is very much a first pass at the subject, and we intend to take this analysis substantially further. Sponsors for the next phase of this analysis would be very helpful!

MEDIA INDUSTRY NETWORKS

One of the most powerful approaches to understanding industries and how they are evolving is to examine them as a network of relationships. The media industry network maps presented here compare the network of the largest corporate participants in the media landscape in 2005-2006, to the situation five years earlier.

Diagram explanation

Each circle represents a company. The thickness of the lines between organizations represents the number of joint ventures, consortia, and other strategic alliances reported in the press over the one-year period 1 July to 30 June, as found in Factiva. As such the map shows activity rather than existing relationships, making it a view of how dynamic companies are. The size of the nodes reflects how many new relationships were reported in this period. The diagram is constructed so that the companies most central to the network are depicted at the center of the image.

Media industry networks 2005/06

Media industry networks 2000/01

Diagram commentary

What is first apparent from this analysis is that the media industry is far more deeply interconnected than it was five years ago. The growth in alliances and joint ventures reflects that it is increasingly necessary to work with other companies, for example in content and distribution deals. Microsoft has retained its position as most central to the media industry networks. New media companies such as Yahoo!, Google and eBay have rapidly become more prominent and central, with others that are more active including Apple, CBS, Viacom, and Sony Ericsson. Time Warner has developed new and strong relationships with Microsoft, CBS, and Google, while AT&T, despite its growth, has become less central. The mobile device manufacturers have become more integrated into the network, illustrating their shift to become true media players rather than simply selling phones. Overall the telecommunications companies remain relatively peripheral, which will need to change if they are to succeed in moving beyond selling connectivity. Print participants remain fairly isolated.