I don’t think that old media is going to die, but the model has to be fluid/dynamic and will change with time. Traditional distribution (a.k.a old disney) can dominate because of the value chain. I’m interested to see how the value chain evolves as digital permeates all media channels including tv, radio, ooh, print, etc. Just look at video games. There are gate holders, unlike most of the Internet.

As fragmentation increases, there is a countervailing desire for the simple, even the pre-processed.

Note how the rates for advertising on the few remaining “universal” outlets like the Superbowl, or overseas, Premier League Football continue to rise despite declining audiences, simply because they are now the only vehicles that can deliver a mass audience.

There is a place for lowest-common-denominator entertainment, simply because people are lazy and like to belong.

That being said, those who deny that a shift is underway have their heads in the sand.

The studios are focused on transitioning old media cash cow businesses like Home Video to digital distribution, but it’s a tricky game to play. Retailers still hold a lot of leverage and there are tons of legal and guild issues that need to be worked out to pave the way.

In the meantime, the new media innovations that you refer to are being made by people that tend to innovate (small companies). The media companies have plenty resources to acquire the assets that they need to get into the game when the time is right. Some folks like Newscorp are well on their way, other folks are much more conservative.