Monday, January 7, 2013

Old TV Media Not Dying Anytime Soon

According to the David Carr article, old media, or more correctly, old video media isn't dying anytime soon.  With the stock market as an indicator of performance, "the Standard & Poor’s 500-stock index was up 13.4 percent, which was a significant advance, but legacy media giants like Comcast, News Corporation and Time Warner absolutely surpassed it in terms of share price."  Content and distribution companies have figured out how to utilize new media.  For content, it is about controlling how it is available outside TV, both in short and long form content, while protecting license fees across different distribution platforms. 

And while the cost of a cable subscription is rising at an alarming rate, subscription loss has yet to make a huge financial impact given other ways they have merchandised content.  And unlike the print and music business, the video business has not yet felt the impact of being displaced; rather, "New players have opened windows to sell content without cannibalizing the retransmission and affiliate fees that have turned into a gold mine for media companies."  And it is that additive revenue that is helping to improve the bottom line.  

And why will cable TV and old video media stay strong, by locking in content.  Need an example, just look at tonight's BCS National Football Title Game between Alabama and Notre Dame.  Not on the web, not on free TV; if you want to watch you will have to be an ESPN subscriber.  Exclusive content continues to matter and sports on TV remains a big driver for cable.  It's why DirecTv has tied up NFL coverage for all games outside the market.

1 comment:

  1. The tighter you lock in content, the quicker it slips away into piracy.