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Cannibals and Dinosaurs

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Old Media's Outmoded Notions
8/1/2002 4:44:32 PM
Posted By: John Masterton


Given the turmoil at AOL Time Warner--and the annihilation of dozens of once hyped online ventures--maybe Mr. Outing should be concentrating on New Media's Outmoded Notions.

Consumer value
7/31/2002 8:35:28 PM
Posted By: Rick Brown

I don't understand how the delayed broadcast has much value to the consumer. My VCR can do that
and make it available on the same night. Newer personal recorders like Tivo offer even more flexibility, and
systems like SonicBlue allow users to send a program to a friend via the Internet. (I know there's a
lawsuit over that, but I don't think the concept itself can be stopped.)

However, if you read the article, there's more to ABC's video service than just the delayed newscast. Better
quality video and 30 day archiving are part of the package. I suspect added features, beyond those one
gets by simply personally recording a newscast, will form the basis of making it a successful package
to repurpose existing material. Whether the features being offered or contemplated are enough to
reach a critical mass of customers and profits, only time and the marketplace will tell.



Internet Prophets and Losses
7/31/2002 6:46:34 PM
Posted By: Robert Spears

Here we go again - blind criticism of "dinosaurs" without offering any supporting economic rationale why the profitable just don't get it. It is both amusing and tiresome that so many online media pundits still believe that they have sound economic advice for other established media sectors (movies, music, books, newspapers, magazines, TV, software, etc.). Time-delayed distribution has worked quite well for the movies and book industries. Why doesn’t Hollywood just release their features through all of their channels at the same time? Maybe it is because they understand how to extract the most economic value by offering differentiated products through time-protected channels.

Let's examine the latest reported "mistake" - ABCnews.com charging for access to video content while protecting existing distribution channels. They have established and, presumably, profitable relationships with existing affiliates - partnerships that have mutually worked for long periods of time. What is to be gained by putting this relationship in jeopardy by making online video content available without any restrictions? What is foolish about protecting bigger cash-flows against newer and unproven channels? Is it really a hardship for viewers that missed evening broadcasts to wait until the next morning for a delayed viewing? Increased flexibility offered to viewers should cost more and NOT jeopardize healthy cash-flows. If ABCNews.com ever decided to release video content simultaneously with their broadcasts, then they should embed local affiliate advertising, somehow, someway.

If the video content is routinely old (e.g. worthless) by morning, then I would question the value of putting the content online in the first place. Given that there are infinite substitutable sources online to get the “news” of the day, why should ABCNews.com go through the effort and sustain such costs? Video news content should offer something different than just a broadcaster simply reading the news that is only relevant for less than 12 hours. I suspect that many subscribers will prefer watching clips of the evening news and Nightline the following morning (given that many people commute during Peter Jennings and later sleep during Ted Koppel). They will also likely enjoy watching video reports contextually tied to their interests, well after original air-dates.

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