No. of Recommendations: 12

TV Is Next: Why Investors Are Getting The Media Industry Wrong

In a nutshell, this examines why nearly all forms of current distribution of televised entertainment based on an advertising model is in deep doo-doo. It looks at the advertising revenue of various models of distribution (cable, Hulu, Netflicks, Youtube, bit torrent, etc) and the amount of advertising revenue each generates per hour of viewing. It also looks at consumer behavior to the options offered.

One quote I liked:

In general, when consumers believe they are getting
a bad deal, they willingly turn to piracy. When they think they are being
offered something at a reasonable price, they tend to pay the legal price.

So logical, yet this is too often ignored by the media purveyors who seem to think they should just get what they always got without regard for the changing realities in the digital world. It generally does not work out for those with their heads in the sand.

A good read if you are or are considering an investment in media production/distribution.


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