World Media Economics and Management Conference 2016

The past decade has seen a transformation in the way media organizations have managed their businesses. The emergence of digitalization has paved the way for new media technologies, a proliferation of media outlets and multiple platforms to distribute mediated content. The work of Picard (2002), Kung (2008) and Oliver (2012) demonstrated the nature of high velocity media market conditions, whilst Doyle (2013, p.35) noted that “media firms have naturally adapted” their businesses, in response to the dynamic nature of the media environment, as a means to protect and sustain their company.

This paper proposes that media firms manage their business and strategies through a process of adaptation. As such, adaptation will be examine through the lens of Dynamic Capabilities Theory (Teece and Pisano, 1994) which is well placed to consider how media organizations have adapted (Ambrosini, Bowman & Collier 2009) to a transformational context heavily influenced by technological innovation. This paper also argues that it is the ‘ability’ of a media organization to adapt their strategies, business model and resources that can provide them with an advantage in the market place.

This paper will present the findings from a survey of UK media executives and argue that Adaptive Advantage should be a prime consideration for media firms operating in high velocity markets, since it is the ability of a media firm to adapt to changing conditions that can provide them with a competitive advantage in the market place.