Monday, August 25, 2008
Olympic-Sized Whiff for NBC's Online Video
I've been chatting with my friends at Gannett for the past few days -- the company is laying of 1,000 folks -- and they are none too happy. Their old business model is swirling into the toilet and the management seems unable to find a winning strategy (my favorite leaked email has one editor referring to wiki software training as wikipedias).
The Web, it seems, is baffling.
Even the Olympics can't save online revenues it seems. Despite record numbers of visitors and streams (72 million streams and 1.5 billion page views), NBC only brought in $5.75 million in advertising.
That's an ungodly awful number.
The math works out to roughly $70 per 1000 video streams, hardly a number to smile about. Even worse when you realize Yahoo brought in $23 million for the NCAA basketball tournament -- a sporting event with decidedly less appeal than the Olympics.
News of the day has eviscerated NBC's online attitude -- and more importantly it's numbers. Yahoo, which didn't even have videos, wiped NBC's collective butts across the new media landscape.
The Chicago Tribune went one step further, saying NBC missed out on the power of the Web: it's ability to dig deep (think niche sports) and deliver content in real time (they didn't want to screw up their television ratings).
In other words, by protecting their old business model they failed to capitalize on the future -- making it that much harder to build a business around new media.
By Brad at 10:31 PM | Comments (0)