The media sector was one of the most profitable ones during the 20th, century when today’s incumbents were able to reach mass audiences through broadcasting and publishing. Today the sector is characterised by more and more fragmented audiences who refuse to be segmented based on traditional features and are increasingly more demanding in their media consumption. This calls for a different approach, one which seems to still elude yesterday’s media giants but is a natural fit for new media revolutionaries. While people are spending more time using the internet as their main route to information and entertainment the ‘old’ distribution channels are still quite profitable and this poses a barrier to change. However, there are signs that media organisations are picking up on trends such as networks and communities where new business models emerge. MySpace is having an impact on the music value chain and Wikipedia is redefining the way encyclopedias are produced. The classic distinction between professionally produced media and content generated and distributed buy amateurs seems to be gone forever. In fact the reverse is true in some cases where for instance blogging is now picked up by respectable newspapers such as the Washington Post and the Guardian in an effort to capture audiences and build relationships that otherwise would have been lost. The challenge remains for organisations to either use strategic innovation to develop new profitable business models and build innovation capability or to identify and invest in new opportunities as they emerge at an early stage.