Hundreds of billions of dollars are up for grabs in the clash between traditional and new media, dubbed the “Media Divide” by IBM Global Business Services in a recently issued report. The report, titled “Navigating the Digital Divide: Innovating and Enabling New Business Models,” found that new forms of media will grow at a 23 percent compound annual rate in the next four years, nearly five times the growth rate of traditional media businesses.

New forms of media were found to be largely user-created and accessed through open platforms, while traditional media is dominated by content produced by professionals and distributed through proprietary platforms.

In addition to the conflict between incumbents and new entrants, however, the incumbents themselves are also divided between content owners and media distributors – “pitting partner against partner in a struggle for growth.”

“Now is the time to determine changes in business models, innovate and re-evaluate partnerships…before it’s too late,” declared Steven Abraham, Global Industry Leader, IBM Media & Entertainment.

IBM offered ten recommendations to traditional content owners and media distributors for navigating the media divide, as well as reinventing themselves for the new media world:

1. “Put consumers at the center of your business and boardroom.”

2. “Convert consumer data into competitive advantage.”

3. “Give control to get share.”

4. “Deliver experiences, not just content.”

5. “Leverage virtual worlds.”

6. “Innovate business models.”

7. “Invest in interactive, measurable advertising services and platforms.”

8. “Redefine partnerships, while mitigating fallout.”

9. “Shift investment from traditional business to new models.”

10.  “Create a flexible business design.”