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What Does a Digital Media Company Do?

By Alexis W.
Updated May 16, 2024
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The term digital media company generally applies to any company that deals in or with digital media. Digital media is any information that is stored in an electronic format, such as text, pictures, audio, or video content. Most digital media can be stored on computers, e-books, mobile phones, MP3 players, compact discs, the Internet, digital cameras, and in a host of other digital storage containers.

One typical function of a digital media company is to create the technology for digital media – its operating systems, equipment, and applications. The World Wide Web Consortium (W3C), Microsoft®, Apple®, and Nintendo® are examples of this type of company. Other companies, such as Google®, Linux®, YouTube®, Facebook®, and MySpace®, also are digital companies, but they mainly focus on the digital realm to connect and find information.

In most cases, the primary function of any digital media company is to enable interaction and communication in some way. This might involve facilitating the exchange and transfer of information, services, and goods. These companies may also innovate ways in which people can interrelate, network, and effectively set up connections.

Some digital companies mostly are concerned with providing a venue for people to share ideas by means of blogs, forums, and messaging. Some create interactive applications that allow members to play games, share photos, exchange audio files, and share videos. Other companies might give people a place to collectively rate the value of the content they come across on the Internet.

There are digital media companies that focus on online photo sharing, storing, and printing. Others specialize in video or audio sharing. Some may be devoted to creating digital film, audio, and text media, as well.

In the process of creating digital media, editing sometimes is required. Therefore a digital media company also might focus on editing digital film footage, mastering sound files, or editing text. Editors at this type of media company usually use digital software and programs while making edits.

Products usually can be promoted through print media, radio, television, and the Internet. As a result, companies exist whose job it is to specifically do this. They may have online, print, and graphic designers on their staff.

Another type of digital media company could specialize in producing software. A related organization often produces the equipment by which to accomplish this production process. Once there is a finished product, the product often is offered online and shared to the public through digital media delivery companies that sell the media and allow for downloading from their sites.

Companies that sell hardware products online, such as clothes and cars, sometimes still are considered digital media companies because they use a digital medium for their sales efforts. These companies provide support to these online stores in their promotional efforts over the Internet, using digital media tools such as search engine marketing, mobile marketing, e-mail marketing, and banner advertising. Beyond these companies, there are those who will analyze the effectiveness of what the promotional companies are doing by doing Web analytics.

One commercial activity conducted by a digital company may spawn a host of other related activities performed by other companies. With advances in technology and the focus on digital realms, there may be a lot of possibility for new and different companies to form. All of these companies have one thing in common: they depend on some form of digital media for their success.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

By wander — On May 12, 2011

For those looking to expand their commercial company, that sells purely physical products, into more of a digital media format can anyone recommend some first steps?

I know a website is a great feature for any business, as is an online shopping component but I am curious about what kind of advertising would get the best response. Would it be best to look into banners or something like app development?

In addition to this, do you think that a viral marketing campaign would be easy to start, or would it be expensive to get up and running?

I am thinking of targeting popular sights like YouTube, MySpace and various forums.

By MrSmirnov — On May 11, 2011

I own an online business that completes and delivers almost all of the orders received virtually, so I guess it would be considered a digital media company. I never thought of it this way before, but the description above really fits our profile of what we do. I may have to go change our online profile to reflect this status.

Now that I think about it, it is pretty amazing how much time I spend consuming products from digital companies. From my e-books to my MP3 downloads and video subscription services, most of my entertainment comes in a digital format.

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