I thought I'd get a jump start on this question, for now I'm just going to brainstorm. To me digital media is:
being able to take a picture in Austria via camera/camera phone and have family in the US seeing it within seconds of me taking it
watching live news from anywhere in the world, about anywhere in the world
and watching it on a computer, ipod, phone, etc... not just tv
advertising on the internet
manipulating photos and videos and posting them where anyone anywhere can see
storing HUGE amounts of media in very small amounts of space, ie thumb drives
better quality photography and videography
There's much more to it, but the key concept is quality, anywhere, anyone, anytime. Remember that Dr. Suess book that talked about "the places you'll go" and there is that page about waiting? Well unless your waiting for an operator to help you fix your ipod/camera/phone etc ... you don't have to wait anymore. There are pros and cons to this but most people only see the pros. I kind of like to go on a vacation and have to wait to get back to sit down and show the family the photos, but now with digital they can see them the moment I take them. However crime scenes for example are a huge pro, photos can be taken and sent as soon as the scene of the crime is discovered. News can get live coverage unlike ever before with digital, and anyone can see it. To me .. in one word... digital media is fast. Always updating and very reliable.
Here is one example of live media from hurricane Katrina the man speaking even says "this is good digital video":
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