TV Business Will Follow Newspapers Says Analyst
June 18, 2009
Henry Blodget has written another ulcer maker. His “Sorry, There’s No Way To Save The TV Business” provided a nice complement to my write up about CNN’s coming cost crisis. If there were any doubt, just think about how traditional media performed over the weekend when Iranians expressed their discontent with election results.
Mr. Blodget asserted:
As with print-based media, Internet-based distribution generates only a tiny fraction of the revenue and profit that today’s incumbent cable, broadcast, and satellite distribution models do. As Internet-based distribution gains steam, therefore, most TV industry incumbents will no longer be able to support their existing cost structures.
He then provided a run down of the changes that are taking place. Good list and worth tucking away for future reference.
The one observation I would make is the Google. The Google Channel, the Vatican Channel, and the specter of a business that media giants of old could not have imagined.
Stephen Arnold, June 18, 2009
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