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June 07, 2005
Broadcasters Face Uphill Struggle
Posted by Ernest Miller
The Hollywood Reporter reports on the struggles television content providers are and will be facing (Broadcast TV Facing Broadband Realities).
Broadcast television networks and stations are destined to become glorified program suppliers whose participation in interactive advertising and content will be dependent on cable, satellite, Internet and other gatekeepers.
Translation: broadcast television networks will no longer be the gatekeepers themselves. Cry me a river.
Maybe they ought to consider working hard to weaken potential alternative gatekeepers. Nah...they're hoping to make a cozy deal with the new gatekeepers instead.
Ask television broadcasters about the future, and they most likely will say they are waiting to be rescued by regulators enforcing digital must-carry, increased sale of digital television sets and a digital critical mass penetration that includes not only homes but also individual TV sets. TV broadcasters say they will resist spending much money on digital content until there is a big enough market (more than the current 10 million digital homes to assure a payback -- mirroring their approach to high-definition television.
If you're smart, you'll realize that the mass market isn't the only market going anymore and will attempt to understand and reach much smaller markets in the digital world. If you're stupid, well, you'll do exactly what they are doing, continuing to focus solely on the mass market.
Once they begin dabbling, broadcasters will begin to capitalize on the fact that consumers respond to and seek particular content -- not networks or stations -- a phenomenon that will be more starkly evident as cable operators convert to all-digital and a la carte content selection and pricing are routine.
"Once they begin dabbling..." Once...
via lost remote
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