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June 09, 2005
Die Network. Die! Die! Die!
Posted by Ernest Miller
Last week I wrote a story about the death of the channel (Die Channel. Die! Die! Die!). Of course, if the channel dies, the whole concept of the network begins to make a lot less sense. They'll certainly have to change.
Well, it turns out that back in April, Deloitte published a report predicting the death of the broadcast network (Television Networks in the 21st Century).
Read the press release: Television Networks Threatened with Extinction: Change or Die, Says Deloitte Report
Read the 16-page report: Television Networks in the 21st Century [PDF]
As markets fragment, control shifts from suppliers to buyers - or in this case, from broadcast networks to viewers or consumers. That shift raises serious questions about the continued viability of the broadcast network business model.
Today, major television networks (public and private) and their affiliates still cling to a premium as the only media outlets with true mass-market reach. But as fragmentation continues, even the most optimistic advertisers have come to realize that no single channel can truly reach the masses. The mass-market is being re-defined.
Good read, though I don't think their recommendations are quite radical enough.
More recently, like yesterday, Broadcasting and Cable reported on a recent panel discussion about the future of television in which several senior executives participated and predicted the death of one or more networks in the next five years (NBC, Touchstone Chiefs: Some Broadcast Nets Won't Survive). On the other hand, "'Frankly, network television is here to stay,' said Magna Global Worldwide Chairman and CEO Bill Cella." TV Squad responded (Networks Better Get Ready for a Change):
If its true, as Bill Cella says in this article, that network television as a business model is here to stay, its only because those with vested interests in its survival will call in as many favors as they have to in order to guarantee it. I think that yes, in five years the network landscape will look much as it does now minus perhaps one major player. But after that its anyones guess.
That's about right, I think.
via Smart Mobs
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