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A Meaning for the Yahoo bid by MSFT

by Rob Paterson

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As sure as the sun rises in the morning - the web will become the primary delivery platform for all information.

Many in public radio and TV, have told me that my feelings about how fast the shift would take place from “air” and cable to web are exagerated. My argument is this. “Weight of money”.

When you pay $45 billion dollars you are not fooling around.

MSFT wish to get ready NOW for this new reality for when the bulk of advertising revenue and action are on the web. Ad revenues are $50 billion right now and are expected to rise to $80 billion by 2009/10. This is the prize. When the ad money shifts out of traditional media, you will hear the sucking sound of a mortal wound. It will be too late to reinvent your self then.

All the supporting parts of a web based radio and TV will have to accelerate their plans

  • The viewing platforms such as the iPods and the large screen TV’s are ready now for a direct link. The Early Adopters are watching the bulk of their video online.
  • Many listen to radio online at the office or on their iPods on their commute
  • YouTube is bursting with great content both from traditional sources and from new entrants
  • Channels such as iTunes and Miro are building capacity - it will be the ease of use that these channels offer that will pull in the Early Majority.
  • Major Networks have their toe in the water and are offering some content online

The Yahoo bid will accelerate all this work.

So what is the work that Public TV and Radio have to do in this context of no time? It is to solve the business model problem. How to offer the best content from TV and Radio AND keep the stations whole. How to do that? I think the answer is to make the offer direct with the forced choice of the show and the station.

I am not saying that people will not listen to radio nor am I saying that people will stop watching TV. People will still buy SUV’s and Trucks. But the bulk of the people, especially people who are naturally curious will make the switch.

mikey1

Remember Mikey - “Give it to Mikey - he hates everything. Well my wife Robin, is the tech Mikey.

Robin is very very resistant to gadgets. BUT …….. She now listens to all her radio online - loading the podcasts onto her MP3 player which she uses when she is doing stuff around the house and walking the dogs. And in her down time, I hardly ever see her anymore - she has discovered YouTube. She has discovered that it is packed with content that she wants to watch - content that is “serious” that is just what a good Public TV member would want to watch. She has discovered that it is easy to watch and listen to what she wants when she wants and that there is tons and tons of great content out there.

She is closer to 60 than 50 and is in the centre of the demographic for Public TV.

So Robin’s desire for interesting content that intrigues her has been met already. Just imagine how easy it will be for her to have access to even more and what her choices will be soon.

Don’t you want her and the millions like her as your audience?

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3 Comments »

JessFebruary 5th, 2008 at 3:51 pm

“I think the answer is to make the offer direct with the forced choice of the show and the station.”

I’m confused. What does this mean?

Rob PatersonFebruary 6th, 2008 at 4:39 am

Sorry Jess - what I mean is this:

As a viewer/listener I want to get what I want to watch or listen too when I want it. This implies that I want to have ONE source so that it is easy for me to find it. So this implies either an iTunes PBS or NPR Channel or some “Public Media Channel that serves the “system” like the Baseball site that serves all the teams.

So imagine I want to watch a Nature program. I select it - pay either my $2 or have a subscription - the money I pay gets sent to the central source BUT I will also have selected a local station that I support - say I live in that city or vacation there. When I watch regular TV I use this channel. Part of the fee goes home to the local channel that I have selected.

Does this make sense?
Rob

JessFebruary 6th, 2008 at 11:06 am

That’s much clearer. Thanks for unpacking it for me — it’s definitely food for thought.

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