What does a New Media Corporation do?

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  • Written By: H. Bliss
  • Edited By: W. Everett
  • Last Modified Date: 28 February 2020
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A new media corporation is a business that specializes in products, content or services used with or distributed using new media. Mainly dealing with digital media, new media includes many compact-disc read-only-memory (CD-ROM) media, digital video discs (DVD), streaming media, online advertising, and websites, though the meaning changes and encompasses more outlets and new media technologies as new and developing methods of interaction emerge. New media is in contrast with traditional forms of media such as radio, film, television, records, newspaper, books, and magazines, though some purveyors of older media also participate in the new media market.

Corporations working in new media are usually involved in technological or content development for the new media world. Many types of businesses qualify as new media. Software manufacturers, online advertising companies, adult entertainment companies, online television networks, and record companies all use new media and new media technologies to run day-to-day business. Like other corporations, a new media corporation has legally incorporated and filled out articles of incorporation. Because it is incorporated, a new media corporation is legally separated from its owner, so the owners are not personally or legally liable for any debts acquired when working under the new media corporation.


New media corporations have the advantage of quick and nearly cost-free distribution of their product or content. Online storefronts have much lower overhead than brick-and-mortar, in-person stores. Unlike print media, new media can be digitally redesigned and redistributed with little or no materials cost. Corporations that offer promotional new media services to businesses can help a business gain direct access to its customer market.

Though it can be an advantage, a new media corporation must also battle with theft by digital piracy. Digital files are easy to copy and convert for upload, and fast Internet connections can download whole albums and movies in a matter of minutes. These corporations must decide how they will battle the negative financial effects of online users distributing unauthorized copy of the media they sell.

The rapid growth of new media arena has presented a number of problems in the legal world. Because no precedents exist to guide legal battles regarding online rights, privacy, or libel. As libel, which is the illegal act of publishing or printing defamatory untruths about a person or business entity, begins to enter the online world, courts must decide how existing laws apply to defamation posted on the Internet. Likewise, as old print media takes a backseat to emerging forms of media outlets, journalistic shield laws must be redefined to define journalism in new media.



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