At 12:36 PM -0800 11/8/10, Kon Wilms wrote:
I wouldn't call this a misunderstanding on the conglom's part - I would call it pure stupidity. If they were smart they would work with Google to optimize their sites and search rankings, and start working closer with their partners like IMDB to get them better visibility. Better visibility and more online content means more online ad space and revenues for them, and an increase in viewer loyalty since augmentation of their shows means a richer viewer experience. Television is no longer a linear or VOD experience. Here they have the opportunity to change their programming models before the competition, with zero investment in infrastructure except their own SEO and content. The internet-based content augmentation model via internet 'STB' is going to eliminate the traditional interactive STB market in the long run, IMO. It will become just another dinosaur unable to keep up with change. Instead they choose to stick their heads in the sand and wonder why consumers are flocking to Netflix and the like.
Kon has it exactly right.Consumers have demonstrated their willingness to PAY for their entertainment fixes...
Cable/DBS subscriptions and VOD VHS/DVD sales and rentals Video games Netflix Audio CDs, Amazon (downloads) and iTunesThe real issue is not whether any system is "open." The issue is the value perceived by the consumer and the user experience.
As I have stated many times before, when the cost of a service - e.g. cable and DBS today - get too high it opens the floodgates to new forms of competition.
This certainly won't be the first time in history that an entrenched industry gets too greedy and falls on its own sword.
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