Posts for 'Cable Networks'

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.

Well not quite yet, as the lawsuits are not yet flying. But we're getting there. After some flip-flopping on this last fall, today Viacom officially told YouTube to take down its clips, reputed to number over 100,000. Obviously you'd need to be involved in these negotiations to know the details of what the offers and counter-offers have been, but it's a disappointment for both parties not to be able to work things out.

As I wrote back in November, "Big Media's Most Vexing Challenge (and How to Overcome It)", companies like Viacom are going through a painful adjustment process to the new broadband-dominated world. This flare-up with YouTube is yet another example.