Media Moguls and Creative Destruction (Dinosaur Media DeathWatch™)

The Wall Street Journal ^ | October 12, 2009 | L. Gordon Crovitz

[abb]

For media, this is the best of times and the worst. The best because the cost to publish news, make a video or distribute a song has never been lower. But also the worst because it's hard to find a company, new or old media, that has emerged with a sustainable business model. Consumers are left wondering how much longer their favorite sources of news and entertainment will be around.

The most recent stark contrast was between the $1 billion valuation for pre-revenue startup Twitter and the shutdown of the iconic Gourmet magazine. A new book provocatively entitled "The Curse of the Mogul: What's Wrong with the World's Leading Media Companies" explains how digital technology has undermined almost all media and why this creative destruction is set to continue.

The book, by investment banker Jonathan Knee and business strategists Bruce Greenwald and Ava Seave, details the dismal performance of almost all large media companies going back to the 1990s. It documents how and why the Internet wasn't the hoped-for savior of newspapers, magazines or broadcasters, and why almost all digital media executives have also found it hard to build companies that last.

The media industry is a leading indicator of how digital technologies undermine old assumptions about how companies create value. Technology has redefined the sources of competitive advantage. The authors write, "In media, particularly since the advent of the Internet, misunderstanding the source of competitive advantage often leads managers to inadvertently build bridges for competitors when they think they are actually strengthening the moat" around their businesses.

"The Internet may be somebody's friend—notably, the consumers of media—but it is not the friend of incumbent media companies," they assert. "Digital media systematically lowers the cost of entry into most markets—it's easier to start a Web site than a newspaper."

snip

[abb]

Monday morning good news.

[abb]

ping

[dalebert]

Why is the weather channel showing news this morning?

[MrEdd]

"For media, this is the best of times and the worst. The best because the cost to publish news, make a video or distribute a song has never been lower."

So now anyone who wishes can do it without them.

[marstegreg]

Perhaps the media should try reporting the news. Most t.v. news and my hometown newspaper have become a huge op-ed opportunity for every reporter (disproportionalty Liberal). I was “forced” onto the web to find “real news” that I had been hearing about. Picking and choosing the news is pushing an agenda that alienates 1/2 of their readers. That is why they are failing, and nothing more.

[Da Coyote]

Twitter? That place is so dumb that even the Obamaloon is overqualified.

[abb]

http://www.adweek.com/aw/content_display/news/agency/e3i731d7f0f9e7e4ab1d81831e0e99fef94
Men More Likely to ‘Go Digital,’ Study Says

http://blog.newsweek.com/blogs/techtonicshifts/archive/2009/10/09/rupert-murdoch-says-google-is-stealing-his-content-so-why-doesn-t-he-stop-them.aspx
Rupert Murdoch Says Google Is Stealing His Content. So Why Doesn’t He Stop Them?

http://www.usatoday.com/money/industries/technology/2009-10-09-google-voice-fcc_N.htm
FCC inquiry wants to know: Is Google Voice a phone service?

http://latimesblogs.latimes.com/the_big_picture/2009/10/is-the-twitter-effect-a-big-media-hype.html
Is the ‘Twitter Effect’ on box office just big-media hype?

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=afty6k2zWuPA
Liberty Media May Bid for NBC Universal, Analyst Says

http://www.latimes.com/business/la-fi-ct-vivendi12-2009oct12,0,2138543.story
Vivendi’s plans may determine whether NBC Universal ends up in Comcast’s hands

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aCIgmXK.S7OM
Comcast Said to Favor Keeping NBC’s Zucker, Management Team

http://www.chicagotribune.com/business/chi-sun-tyree-sun-times-oct11,0,2812633.story
Sun-Times buyer Jim Tyree: Media magician?

http://www.nypost.com/p/news/business/cut_down_to_si_ze_mSWl7Sb2OnSDKuUaESOFkO
Cut down to Si(ze)
Newhouse, clan dig deep to fill Conde money pit

http://www.mediaweek.com/mw/content_display/news/magazines-newspapers/e3id3d058ba458918f0c20982bbcba929ff
After Condé Cull, Buyers Seek Publisher Transparency

[OnTheDress]

The quizzad and polladd will help ferret out the new media winners.

[abb]

http://www.adweek.com/aw/content_display/news/media/e3i30e7feb16ddb0207d77b7b142413a792
Music Biz Eyes Web Ads
The recording industry looks to monetize Internet video

http://www.chicagotribune.com/business/columnists/chi-sun-phil-rosenthal-1011oct11,0,25588.column
2-newspaper towns: Death of a paper means a city can lose a lot

http://www.dallasnews.com/sharedcontent/dws/bus/stories/DN-DMN_11bus.ART0.State.Edition1.3cf5397.html
Dallas Morning News takes premium value approach

http://www.poynter.org/column.asp?id=123&aid=171536
Shrinking Newspapers Have Created $1.6 Billion News Deficit

http://www.ajc.com/opinion/to-our-readers-ajc-159218.html
To Our Readers: AJC takes new approach on election

[abb]

http://www.freerepublic.com/focus/f-news/2360343/posts#11
Francis Ford Coppola Sees Cinema World Falling Apart (cinema dinosaur watch)

[ken5050]

FYI..I pay $ 44 a YEAR ( one time payment ) for my annual subcription to the Tampa Trib...7 days/week..delivered to my door every morning by 6am..

[Texas resident]

There is actually a newspaper worth saving, The Washington Times. They actually report news and stories that are never in the mainstream obambi media.

[RJL]

Why is the weather channel showing news this morning?

Perhaps it's difficult to support Obama and liberal Democrats just commenting on the weather, but if they start a biased news program it will be much easier to pump out the Democrat talking points.

[Landru]

"For media, this is the best of times and the worst. The best because the cost to publish news, make a video or distribute a song has never been lower. But also the worst because it's hard to find a company, new or old media, that has emerged with a sustainable business model."

Xlated: the product stinks and ways of making consumers pay for that which they've rejected has yet to be found.
I know -- I know, how rude of me. LOL

"Consumers are left wondering how much longer their favorite sources of news and entertainment will be around."

BWWWHAAAAAA!!!
Ahhhhhhh, some consumers. LOL

[Landru]

"Why is the weather channel showing news this morning?"

In case you'd not heard, Dale?
The Weather Channel was purchased recently by none other than NBC-Universal. Makes [more] sense now, huh.

I subscribe to DircTV's HD (High Definition) service.
Totally digital with scads of "interactive" offerings.
Personally I don't use the interactive stuff, but stick with me.

DTV *now* offers something they call the "Active" channel. What Active provides is instant weather, radar & 5 day forecasts per subscriber zip code, among other crap of interest to their subscriber base.

Since it seemed when[ever] we needed a forecast, radar etc, especially when we were having severe weather?
We'd go to The Weather Channel and it'd be some nonsense like When Weather Changed History et al ad naueum. Was getting rarer & rarer one could GET weather on The Weather Channel. Really pissing us off, big time.

BUT now we don't need TWC, we've this Active feature. I programmed out The Weather Channel right there & then. Can't tell you the joy that li'l act brought me, my friend.

And the irony of it all?
Who is it supplying DircTV the info for their instant weather service?
You got it: The Weather Channel. LOL!!

[abb]

http://crosscut.com/blog/crosscut/19123/
The best of Times?

[abb]

http://www.footnoted.org/sec-stuff/sec-tells-wapo-to-do-better-job-explaining-its-comp/
SEC tells WaPo to do better job explaining its comp…

http://www.deseretnews.com/article/705335971/Saberi-NPR-analyst-laud-freedom-of-press.html
Saberi, NPR analyst laud freedom of press

http://www.cjr.org/regret_the_error/the_new_great_american_pastime.php
The New Great American Pastime

http://www.foliomag.com/2009/consumer-adverting-pages-decline-tenth-straight-quarter
Consumer Advertising Pages Decline Again, Falling 26.6 Percent in Q3

http://adage.com/mediaworks/article?article_id=139594
Si Newhouse’s Focus on Magazines Cost Gourmet Dearly

http://www.washingtonpost.com/wp-dyn/content/article/2009/10/09/AR2009100902573.html
In a Fast Food Nation, No Taste for Gourmet

http://www.businessweek.com/innovate/FineOnMedia/archives/2009/10/winning_bidder.html
Winning Bidder For BusinessWeek To Be Named Soon

http://www.observer.com/2009/media/times-metro-desk-cancels-all-newspaper-magazine-subscriptions
Times Metro Desk Cancels All Newspaper, Magazine Subscriptions

http://www.chicagoreader.com/chicago/aliens-in-our-midst/Content?oid=1209783
Why columnists need to keep a safe distance from their fans

http://online.barrons.com/article_email/SB125512918844277031-lMyQjAxMDI5NTE1MTExMjE5Wj.html
A Valuable Franchise, Warts and All

[dalebert]

lol I got same ....was it hard to program out?

[Landru]

"lol I got same..."

Well then man, you're in like Flint! LOL

"..was it hard to program out?"

As easy as programming it in, piece of cake.

Click on "Settings" on your remote & follow instructions for "Favorites". Uncheck the box next to TWC's program number & voila', >poof< , goneski. LOL
Hell's bells if you're technically challenged, call DTV and their people will talk you through it. ;^)

Think: the dumb-ass snot nosed brats running NBC-U couldn't have thought this through; so, until they figure it out, enjoy!

Instant WEATHER provided courtesy of TWC w/o TWC's crap!
It don't get any better than that, my friend. LOL

[GeronL]

great news. What is their solution? is it to make media companies give consumers a better product or is it to license websites and restrict access to content?

Probably the latter, cuz they dummies.