SMRs and AMRs

Monday, April 15, 2013

More Cracks Undermine the Citadel of TV Profits

By DAVID CARR, NYT

For the longest time in the media business, the concept of the bundle has been foundational. Ads go with editorial content in print, commercials go with programming on television and the channels you desire are paired with ones you did not in your cable package.

People were free to shop for what they wanted, as long as they were willing to buy a bunch of other stuff they did not. The box score last night for your home team? It was wrapped inside a bundle of paper that included everything from foreign news to ads for lingerie. If you liked a song, you generally had to buy an album full of others to get the goods.

As for advertisers, the audience they wanted was bundled inside a much larger audience of people they did not. To get at the milk, both consumers and businesses had to buy the cow.

Television has thrived on this kind of systematic stacking, but though bundles may be a handy way of protecting things, they also tend to obscure the weaknesses within. Those flaws are becoming more apparent as the practice of bundling comes under attack.

(More here.)

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