Friday, March 30, 2007

Old Media Can't Let Go

Old media needs to learn about distribution if they want to survive in the fast-paced online, according to IAC's Barry Diller. Diller says (as quoted in the Financial Times that video and print publishers who resist decentralized content distribution will fall into the same trap of the music biz that has seen copyright infringement and alternative distribution sap their revenue.

Now, if they don’t distribute, then you have the same effects that happen, probably with the music business. If they bury their head in old sand.

Diller is right - decentralization is the only way to reach a broad audience. Unlike the 100 or so channels of TV, there are millions of websites, and pretending that you can pull all the strings (like NBC/Fox) is the wrong way to go. Media companies who want millions of eyeballs need to work with and not against the Joost's and YouTubes of the world if they want the volume of traffic needed for ad-supported video (and print) content.

Today there are dozens of media portal hubs, but that number will shake out to a handful of major stars. But for content that appeals to vertical audiences, media companies will have no choice but to work with a greater number of smaller companies who will know how to find and serve a specific audience.

Posted By John Gartner at 12:42 PM
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