As in the established media, the distribution of power between players in the new multimedia environment—and hence the share of economic surplus—will be governed by proprietary, hard to replicate content, control of proprietary distribution, and the defensible loyalty of a unique set of customers.

In the emerging interactive environment, we have identified six defining themes that should guide content providers in their efforts to develop proprietary content for the new medium and maintain and enhance their direct customer relationships:

1. Affiliating with communities of interest. These communities are subject-oriented electronic meeting points that offer community members access to a variety of communications and content applications. Communities of interest are likely to become important vehicles for tapping into advertising and transaction revenues, building early affiliations with a core group of users, and establishing switching barriers.
2. Building a web of alliances. No one company has the content and capabilities to develop and manage a complete community of interest. Content providers need to build a web of companies (including competitors) to serve a community effectively. Moving early allows content providers to lock in the best partners and establish the most powerful web.
3. Leveraging proprietary brands. Brands will encourage trial and help providers gain...