Tuesday, June 16, 2009

The Death of the TV Business

Great article in Advertising Age called: Sorry, There's No Way to Save the TV Business by Henry Blodget that really reminds us that history tends to repeat itself. Technological change affects businesses and one needs to look no further than the businesses before it to see what will eventually happen to them. Need examples...what the web did to the music industry it is doing to the DVD and video business. The same holds true for distribution.

The article looks at the changing business of newspaper subscription and correctly argues that broadband will do the same to upend the apple cart for cable TV subscription. "After saying all this same stuff for years, the newspaper industry figured out the hard way that, eventually, reality intrudes. You can't stuff the genie back in the bottle. And in the next five to 10 years, the TV industry will figure this out, too." What essentially have been barriers to entry that prevent consumers from seeking content elsewhere, have been lowered such that consumers don't necessarily need to pay as much for their entertainment dollar. "With an internet connection anywhere in the world, you will soon be able to get to almost anything. And not just to your computer -- to your TV."

The death of the TV business is not as the author points out, a question of if; but rather, a question of when. A must read article.

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