The technology industry is about to get a lot more interesting when it comes to what it means to be a digital-media giant.
With social media gaining in popularity, the future is looking increasingly bright for media companies as well as consumers.
In the wake of the 2016 US election, social and mobile apps like Facebook, Twitter and Snapchat are expected to dominate the social media market in 2020.
What that means for the media companies that are already in business?
According to a new report, the biggest threats to the future of the industry come not from the tech giants, but from the social platforms.
The report from Telematics Canada says social media giants are becoming increasingly dependent on their users and are taking a page out of the Facebook playbook.
That’s not surprising.
They’re not the only ones.
As tech companies struggle to keep up with the rapid rise of digital social media platforms, it’s no surprise that some of their business models are in serious trouble.
“It is a trend that is growing in many of the industries that we study, but it is certainly not unique to the tech companies,” says Telematices’ James Lehrman.
“We see it everywhere from the auto industry to the restaurant industry to real estate to retail.”
Social media companies are becoming more dependent on users and the companies that use them Lehrmans report lays out a litany of challenges that could put the media giants at risk of losing their audience.
Lehrmann says there are several reasons for this.
First, the new social media is being used by consumers who are already connected to their friends and family.
“I think people are already aware that they are connected to friends and their family,” Lehrmen says.
“And I think we are starting to see that with the advent of mobile apps, as well.”
And second, Lehr mans report shows that social media companies don’t want to have to compete directly with other digital platforms.
They want to build up their user base and then make money by offering advertising and other revenue streams that will help them pay off their debts.
Leermans report points to an example of a social media company that’s trying to grow its user base by building up its revenue streams.
In fact, Facebook is already working to expand its advertising platform.
But Lehr is concerned about a future where there are only a handful of social media apps and they have to fend for themselves.
“There’s no one platform that is going to be going to the top,” Leerms report states.
“The competition is going be a little bit tougher.”
Lehr warns that the rise of social networking platforms is going “to make the media industry much more vulnerable.”
“There is going for a lot of money going to a small number of companies who are the only players in the marketplace, who are taking the lion’s share of it,” he says.
Leera is concerned that the technology giants are taking advantage of this situation by charging for the use of their services.
“That’s going to lead to more fragmentation of the market, and that’s going too far,” Leerche says.
According to Lehr, social networks are going to become a dominant platform in the digital advertising space.
Leerches report says the rise in the popularity of social networks will lead to new forms of advertising.
But it also warns that “the technology platforms are going through a phase in which they are not going to provide the same level of revenue to the content owners that they used to,” Leermans report states, adding that this means the tech platforms will be able to charge more for their ads.
“When you have these high costs that are on both sides of the equation, you have a situation where the content creators are paying the content companies a lot less, and the tech is paying them a lot, and they’re going to have less control over how much revenue they get from the ads that they’re providing,” Leers report states and notes that “we’ve seen this in the media space where there’s a lot lower-quality content that doesn’t get much attention.”
Leerchers report points out that Facebook’s “Sponsored Stories” platform has been criticized for allowing advertisers to charge for a limited number of ads.
In a statement to CBC News, Facebook said: “Sponsoring Stories is designed to help advertisers find the best content to share with their audiences.
It doesn’t create any new revenue for Facebook.
Ads run on Facebook will continue to be free.
Facebook offers advertisers more control over what content is shown in their ads, and advertisers can decide what content they want to show in their ad.”
According to Facebook, Sponsored Stories is “designed to help marketers reach more people with more targeted ads.”
Facebook also pointed out that its ads are not paid.
“Facebook ads are run through the network of partners that we work with,” Facebook wrote.
“Our ads run on partners who have approved our ads for use.
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