[opendtv] News: Broadcast TV "is suffering a slow economic
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Fri, 2 Apr 2004 09:16:57 -0500
Broadcast TV "is suffering a slow economic
April 2, 2004 12:00am
Source: Warren Publishing, Inc.
COMMUNICATIONS DAILY reports that Broadcast TV=20
"is suffering a slow economic decline as a total=20
industry" and TV stations "have to do something=20
now" to reverse that trend. This call to action=20
came from Joseph Kraemer of Law & Economics=20
Consulting Group, after his presentation at NAB=20
=46utures Summit last week -- which was closed to=20
the press.
Kraemer predicted the cable industry ($17.7=20
billion) would overtake broadcast network ad=20
revenue ($16.8 billion) in 2005 -- with cable's=20
advantage growing in 2007 to $22.2 billion vs.=20
$18.5 billion.
A new revenue model such as multicasting "is the=20
only outcome that assures future growth for local=20
broadcasters," Kraemer said. To develop a=20
sustainable national multicasting service, he=20
said, "requires a consensus among a critical mass=20
of broadcasters" and that's lacking. "Doing=20
nothing is very easy and very risky -- the mature=20
industry trap." The cable industry isn't=20
invincible, but it operates "through a core set=20
of strategic issues [which] makes cable very=20
dangerous to broadcasting," Kraemer said.
<< Copyright =A92004 Warren Publishing, Inc. >>
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