From the fantastic Forbes special issue on Networks, a piece by Rupert Murdoch that shows why he stands out as the one old school media tycoon best prepared to adapt to the new world (i.e. MySpace wasn't a fluke):
Media companies don't control the conversation anymore, at least not to the extent that we once did. The big hits of the past were often, if not exactly flukes, then at least the beneficiaries of limited options. Of course a film is going to be a success if it's the only movie available on a Saturday night. Similarly, when three networks divided up a nation of 200 million, life was a lot easier for television executives. And not so very long ago most of the daily newspapers that survived the age of consolidation could count themselves blessed with monopolies in their home cities.
All that has changed. Options abound. Fans of small niches can now find new content they could never before. Going elsewhere for news and entertainment is easier and cheaper than ever. And people's expectations of media have undergone a revolution. They are no longer content to be a passive audience; they insist on being participants, on creating their own material and finding others who will want to read, listen and watch.
Read the whole thing here. And get the print edition to read the rest of the excellent essays--it's one of the most thought-provoking special issues I've read in years (yes, I'm a bit envious).