Terry Heaton has some good comments on whether broadcasters will repeat trends in the newspaper industry. He writes:
... local media companies will never — repeat NEVER — recoup losses to their legacy platforms’ business model by shifting that model online. This is because traditional ad methods follow the path of scarcity, but abundance is the rule-of-thumb online. ¶ Mass marketing requires scarcity in order to create demand. Reduce the supply, increase the demand; it’s as old as the modern culture. But online, the demand side now plays a major role in creating its own supply — and this is especially true of businesses supported by advertising, a.k.a. the media. Fragmentation, disintermediation, the ability to unbundle content from form, and the personal media revolution have all created an abundant, customer-in-charge world for media, one in which pure reach-frequency ad models won’t work....
Link: The PoMo Blog.
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