6 Trends To Watch In 2015: business, media, tech

This past year has been defining in many ways. We saw the rise of bitcoin and its numerous vulnerabilities. Cyber security was in the headlines as several corporate hacks exposed gaping holes in digital security. And in the world that I know very well - media - we saw a blending of old and new like never before.

What follows are some thoughts for 2015, according to me. I'm sticking with what I know best: business, media and tech. For the sake of confidentiality, I don't name clients, executives, and others who have shared their thoughts with me, although everything here is based on meaningful insights.

1. Software will continue to eat away at established industries, and politicians will need to pick sides

It was in 2011 that Marc Andreessen coined the term software is eating the world. More specifically, software is eating into staid industries. We see it in food delivery with Instacart. In transportation with Uber. In property rentals with Airbnb. These are not sexy new industries - they've been around for as long as commerce.

It has become clear from the regulatory battles that the incumbents are not going to sit idly by and watch their businesses erode. But they're also not fighting back with superior products and solutions. They are lobbying for these newcomers to be shut down, plain and simple. Politicians will be forced to take sides, especially with the 2016 US election season getting underway.

As well, the theme so far has been especially prevalent in the consumer world, like the ones mentioned above (travel, property rental, food delivery). So how can apps revolutionize stale enterprise functions like oil and gas drilling? Manufacturing? Real estate development? This is all blue sky opportunity.

2. Music Streaming Will Iterate its Business Model... and then iterate some more

Taylor Swift captured headlines when she pulled her catalogue from Spotify. Another story that didn't attract as many eyeballs was songwriter Aloe Blacc's op-ed revealing that he earned just $4,000 for co-writing the most streamed song in Spotify history. This raises a simple question: If a song that is streamed 168 million times yields only a few thousand bucks for its creator, how is any artist supposed to make a living? Services like Pandora, Rdio, Songza and the rest will need iterate their business models and potentially pass more of the costs onto consumers, if they're going to build a viable new industry.

For disclosure, the numbers in Aloe Blacc's op-ed weren't fully revealed. The $4,000 figure was only a portion of royalties and it looks like that came from Pandora, not Spotify. But my point stands.

3. New media formats will continue their ascent, with new media personalities gaining ever more influence

YouTube star Bethany Mota joined Dancing With The Stars. The year's #1 radio show couldn't be found on the radio because it was actually a podcast called Serial. Cable behemoth HBO announced its new over-the-top service called HBO Go, no doubt a defence against Netflix, Amazon and others.

As the CEO of an influencer marketing exchange, I've seen this space transition from 2011 to 2014. Going back 3 years, most people didn't know what a YouTube content creator was. Today, these creators are more influential than even the biggest Hollywood stars. From Influicity's own client discussions, it's clear that advertisers large and small are committing ever more dollars towards influencers. This will continue as influencer marketing navigates through a renaissance of brand acceptance, penetration, and standardization.

Beyond the talent, we are also seeing the transition of producers and executives from old to new media firms. Established TV producers are moving over to digital media networks to develop new forms of programming. Traditional media execs are breaking new ground on the web. There's even been recent speculation of Yahoo acquiring a cable co like CNN or Scripps to beef up its programming slate. While it's only a rumour, it is a telling sign of who's in charge.

4. US stock markets will cool down a tad, and investors will be looking for new places to put their money

After 4 years of double digit gains, US market analysts are predicting single-digit growth and a possible correction in the second half of 2015. Investors flush with cash may be looking for new asset classes and promising start-ups will be on the list. To be clear, this doesn't necessarily include seed stage companies. Traditional investors tend to have an appetite for companies producing decent cashflow, or consumer apps with hyper user growth.

In Canada, where oil and gas dealflow has slowed, many individual investors are looking into technology. The visibility of Canadian names like Slack, Shopify and Hootsuite make it feel safer to invest in tech. These financiers will also make some dumb moves, which is only natural. The numbers will just be greater. Add to this the rising interest in hardware which is notoriously a more risky investment.

The falling US unemployment rate is a boon for entrepreneurship and small business as well. While I believe there is actually never a great time to start a business - now is as good as any - lots of people with jobs is good for lots of reasons. Consumers are generally more likely to experiment on a new product/service with a few extra bucks in their pocket.

5. Cyber security will be front a centre in corporate decision making, as companies play in an ever-globalized marketplace

CIO's had their hands full in 2014 with a slew of corporate security breaches, from Target to Home Depot to Sony... and then Sony again. And these are just the ones that made headlines. Think about how many corporations were faced with the threat of a breach!

Cyber warfare is not a new phenomenon, but it feels much more real when the world's most revered enterprises are hemorrhaging confidential data. In my conversations with CEOs, digital executives, and foreign investors, the safeguarding of a company's digital assets is top of mind. Watch for advancements in cybersecurity and heavier regulations mandating that companies do more to protect data.

6. Entrepreneurs are discovering a world of funding beyond venture capital, and that's a very good thing

Traditional entrepreneur mentality dictates that you build a prototype, demonstrate early traction, and start raising money. For this last part, top names that come to mind are VC's like Sequoia, Kleiner Perkins, Andreessen Horowitz, et al. But startups are starting to realize a world beyond these VCs.

As an asset class, startups have traditionally sought out VCs because they see other startups doing it. But I'm seeing a shift in this paradigm. First off, investors flush with cash a more willing to make bets on these businesses (see point #3). Second, traditional service companies are looking to invest in groundbreaking technology, which could potentially threaten their bread and butter businesses (see point #1). Third, companies are increasingly seeking for vertical integration, aiming to take a bigger piece of the pie. Investing in businesses at different points in the value chain can help achieve this goal.

The competition for great investments is fierce and smart entrepreneurs will expand their horizons when looking for smart, strategic, and deep-pocketed investors.

Did you enjoy this piece? If so, please click the "Follow" button at the top so I can continue to share with you on a variety of topics.

Follow Jonathan Davids @jonathandavids
Follow Influicity on Twitter @influicity

Influicity is an influencer exchange and activation platform, helping marketers work with over 900,000 influencers on YouTube and across the social landscape.