I wanted to share another great post titled, "Kill the Studios!" from Kevin Maney at Portfolio.com. To sum it up real quick, this post covers in good detail why major studios and TV networks have much to fear with the real threat of online video taking over quickly. The alternative (though it may just be too late) is to embrace the online video destiny and quickly adapt business models to take advantage.
This very much reminds me of the obvious threat posed to newspapers back in the late 1990's with online classified portals being developed and internet portals being launched with success, yahoo, ebay, etc… Many newspapers have not adapted to the online way of business and as a result have suffered. By now, most have embraced online, but not until the threat was glaringly obvious. With the speed at which web and internet technologies have been developed, it has proven that time is critical for adaptation. Some newspapers have been successful in recapturing some of the lost marketshare. However, in my opinion, just as it appears is the case with TV networks, all old media businesses in general are reluctant to truly focus in the interactive space.
Anyways, here are some excerpts from post:
"Entrepreneurs are testing every business model imaginable. In March, video-search company Blinkx plans to launch Blinkx Broadband TV, which will act something like a cable company, offering multiple channels and delivering images of much higher quality than the typical grainy YouTube clip…
One thing is certain: As internet ad networks like Google's get better at tracking video hits, dollars will shift from broadcast media to the more targeted media on the internet—a more efficient means of reaching potential customers. That revenue will attract additional stars to internet media, and they will draw a bigger audience, which will result in increased revenue.Record labels, major studios, and TV networks won't disappear, just as movies didn't disappear after the arrival of television. But they will be diminished, much as cable TV sapped the power and challenged the dominance of network TV a couple of decades ago .”
Read full post here
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