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IBM Tackles Media Divide

ARMONK, N.Y. -- IBM (NYSE:IBM - News) Global Business Services unveiled its new report, "Navigating the Media Divide: Innovating and Enabling New Business Models," which offers a list of actions that companies can take to navigate the conflict threatening traditional content owners and media distributors. IBM calls this conflict the "Media Divide."

To examine the inherent tension between new and traditional media and explore future industry scenarios, IBM conducted a comprehensive study that included interviews with leaders of media companies and an in-depth analysis of the factors that are shaping the industry outlook. The IBM report shows that new forms of media will grow at 23 percent compound annual rate in the next four years, nearly five times that of traditional media businesses. The report also estimates that the music industry lost between $90-160 Billion in its transition to digital and finds that future implications are even greater for television and film if companies do not systematically navigate the media divide.

"The current clash between traditional and new media has reached a fevered pitch. Industry incumbents are responding -- but perhaps not quickly or completely enough," said Steven Abraham, Global Industry Leader, IBM Media & Entertainment. "Now is the time to determine changes in business models, innovate and re-evaluate partnerships. Content owners and media distributors must take action before it's too late."

IBM Corp.