- April 27, 2014
- Posted by: essay
- Category: Term paper writing
- Identify an example of disintermediation within a specific media industry and briefly discuss how digitization has led to a shift in the relationship between producers and consumers.
In general sense the term intermediation’ means giving entities at one stage in the supply chain (e.g. consumers) more direct access to entities at another stage of the supply chain (e.g. manufacturers) by eliminating the need for intermediate entities (e.g. retailers) in that access (Sampson and Fawsett 2001, p.3) Disintermediation is a global process that led to significant shifts in the relationship between producers and consumers in various industries. Numerous examples can demonstrate how it works now in contrast to how it used to work before. Book publishing industry can be given as one of the brightest examples of shift in the relationship of producers and consumers. The authors used to write their books. After the book was written they had to search for a publishing house to get their books published. They could also apply to some newspapers, magazines or other press to get their books or articles published. The book had to be checked and corrected by editors before it could have been published. Â However, the process of searching for a publishing house could take much time. Before the publisher could have been found the author could receive several refuses. After the book has been published it had to be distributed into bookshops and libraries. Only after that consumers (readers) get access to a book. However, disintermediation in book publishing industry has changed the situation. Now an author can offer his books online. Readers can download his books and he can get payment online as well. Thus, at least two retailers between an author and his readers have been shifted. Now the access to new books is faster and more effective in terms of time and money.