Wednesday, April 4, 2007, 3:49 PM ET|Posted by Will Richmond
I was talking to a reporter earlier today, who asked me if traditional media companies should view broadband video as a threat.
It’s often tempting to think of anything new or any change as being threatening. That’s probably human nature. So it’s perfectly understandable why broadband video is still perceived as a threat by many.
But in fact, broadband is a giant opportunity.
Here’s a great example. CNNMoney.com launched a new Luxury “channel” on its site. This gives CNNMoney a place to grab the attention of high net worth audiences. By showcasing products with glossy video that luxury products companies and retailers want to be next to, CNNMoney is able to tap into new ad dollars in a targeted way. Could Turner have launched a conventional cable channel on “luxury”? Not a chance. There’s no room left on the dial and financing a 24x7 linear network would take big bucks until it eventually got to break-even.
Broadband lets Turner/CNN get into an important new category for a modest amount, leveraging their brand and traffic to generate new revenues.
I keep saying that media companies should view broadband as not only an opportunity, but one of the biggest ones they seen in ages. CNNMoney seems to get it.
Categories: Cable Networks