2015

Viljakainen, Anna

This thesis explores the on-going change in the media sector, using servicedominant (S-D) logic as a lens to explain it. The starting point is the basic premise of S-D logic: value co-creation between customers, partners, employees, and competitors. The novelty in this work is the application of (S-D) logic in the context of industry transformation. Another aim is to introduce service management to the field of media management and economics. The study also offers tools for media professionals in their search for sustainable competitive advantage. Two research questions structure the work: (1) how does a transfer from a goodsdominant to a service-dominant logic manifest itself in the current business practices and future trends in the media industry, and (2) what are the central topics to understand better the on-going change in the media sector. Case studies have been carried out with face-to-face semi-structured interviews (n = 50). The main result is that the traditional media industry is transforming towards growing value-orientation and service-based thinking. The industry is also 'servitizing': the companies provide service offerings in addition to material products. A central driver is technological change, which modifies media consumption habits and causes fragmentation of media and audiences. A change is also taking place in the way in which media firms perceive their audiences and the opportunities for value creation. Media business is an illustrative example of the shift to assisting customers and to sustaining communities where people create value by engaging. In this new world resources are being mobilized and integrated from a service ecosystem that crosses industry borders. On the other hand, traditional media is heavily goods-oriented and the adoption of the new perspective is challenging. Two theoretical constructs summarize the findings: (1) a trend analysis, and (2) the business model approach. The trend analysis shows the opportunities available for media companies in the creation of their own futures - instead of merely reacting to external changes. The business model construct crystallizes the industry transformation towards S-D logic. Both can be used for deepening the research in media management. A contribution to S-D logic is the integration of its core idea of value co-creation with the design of individual offerings.