Analog to Digital: Crisis in Traditional Media Distribution

by Joe on August 2, 2008

After my post about how content is not an means to generate revenue, Andrew Chen wrote a fantastic piece about the crisis in traditional media. In it he provides an excellent detailed view into the dying industry and speaks to what central issues are broken by saying the following:

The core competencies needed to succeed in digital media
If content becomes increasingly commoditized, and fragmented among many distribution vehicles, then what happens next? I’d argue that the new skills required to succeed in this era are NOT:

  • Understanding how to best own/operate pipes, like cable systems, satellites, radio towers, etc
  • Strong-arming partners and distribution to lock content into place
  • Finding media synergies to cross-promote content and “make” hits

Traditional Media Revenue

Although Andrew’s items may seem like the strategy is not focusing on driving revenue from the content, they are still strategies that focus on controlling the content. Media companies need to realize its about setting the content free and getting residual and higher margin revenue off of associated products. 

Do you think they will ever learn?  What frustrates you about media companies?

Photo: Suck in Customs

One comment

Uh-ho, you’re down to #32 in Google search. Gotta start improving your street cred!

by Hannah on August 20, 2008 at 11:58 pm. Reply #

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