[opendtv] Re: A Perfect Storm Hits Media Businesses
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Thu, 3 Sep 2009 10:48:37 -0400
At 11:32 AM -0400 9/2/09, Manfredi, Albert E wrote:
Bah. With greater distribution, two opposing effects take place.
Outstanding content is made available globally, *and* more varied
content is available too. I do not buy the idea that outstanding content
disappears because it gets drowned out by variety. Not entirely.
If the networks continue to produce what the global masses really want,
their content won't lose value.
I did not suggest that outstanding content would disappear, although
most TV viewers, at least here in the U.S., seem to be watching far
less of the broadcast network's "outstanding content."
I would proffer that there is FAR LESS outstanding content being
produced today. I believe there are two reasons for this:
1. The huge cost for talent and the creation of network shows, due in
part to a legacy business model that grew from the huge profits
generated by the networks during the "Golden Age of TV."
2. Fragmentation of the audience - not just the "500 channel" TV
universe, but the impact of technologies that allow people to do
other things for entertainment.
Highly paid talent still can deliver eyeballs, but the public seems
far less interested in "star power" and more interested in "story
power." The fact that Disney just spent more than $4 billion for
Spiderman and his buddies says a great deal...
And the top rated TV show for the last few years - American Idol -
is just a glorified talent search.
The stage is set for independent producers to get their stories in
front of economically viable audiences, WITHOUT the need to deal with
the conglomerate gatekeepers.
Another point is that with Internet distribution, the congloms lose the
ability to collect twice for their content. Distribution over the
Internet and distribution FOTA will look very similar to the conglom.
They won't get a portion of ISP subscription fees. Unless ISPs change
the way they do business, to operate more like regular MVPDs.
Subscriber fees are but one way to make money. Direct sales could be
even more profitable.
People are already paying $25 to $50 for a season of many TV shows
delivered via DVD. I can easily see people paying $25 to subscribe to
a show they like, with each episode being delivered via Internet
download in HD along with a lower resolution mobile version.
Apple might announce something like this next week...
Regards
Craig
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