Media technology outlook

Today the ICT cluster is the edge of the Finnish economy. It had a total turnover of EUR 34,1 billion in 1999 and employed 146.000 people. The media sector is a part of the ICT sector with a turnover of 5,5 billion EUR, but is still a relatively important employer with 41.000 persons. The three main components of the media sector are print media, electronic media and recorded media. The share of print media (newspapers, magazines, books and printed advertising materials) is 75 per cent.

It has been the scope of this strategic project to identify the core technologies which have a mayor impact on the diversifying media industry in the time perspective of the next decade, i.e. to the end of 2010. Digitalisation and new telecommunication technologies are essential factors in the development. Digitalised information can easily be revised, stored, compressed and distributed. Not only the production and the way of action are changed, but also the products and the services themselves. New distribution channels, information carriers and terminals offer the end users a variety of new alternatives, like digital television channels, services and electronic books.

The utilisation of ICT technology leads to structural changes across the traditional boarders of branch and market segments. Some hardware suppliers have already become active content providers, and many more intend to come. The spectrum of technologies utilised and further developed by the ICT cluster increases continuously. The markets have until now been created by technology push, but market pull is growing in importance. The end user is not interested in what technology for data transmission the channel utilises, or the components of the terminal, if only the services are attractive enough in relation to the price, reliable and easy to use.

ICT will remain the driving force for technology and economy for the next decade. After that it will slowly merge deeply into different applications. Therefore, it is important to identify new solutions in the field of basic industry, services and administration. The most critical challenges to the media industry today are the demand on rapid structural change, overcapacity in the printing sector, ability to increase the efficiency of the business processes and the ability to develop new, attractive products and services. This requires significant investments in research and development, but also in training and education.