Andy Kessler has some interesting posts going on at his blog about how the media industry as we know it is misaligned for taking advantage of the technological changes happening on the internet and its likely business impact. His installment ‘Go Wide’ is particularly good.
The horizontal model that Kessler hands out reminds me of the process by which movies and television programmes get made and financed with independent production houses bringing together the relevant elements as required.Whether or not media companies can utilise expertise in re-engineering their business model is another matter. Kessler is also quick to point out that there will always be a market for well produced content.
I have also been reading about how the EU are looking to regulate video bloggers. Whilst I am used to a whole pile of scare stories about the EU regulation (most of which are urban myths) this could seriously queer the online media game. Its also the thin end of the wedge and shows the industry needs to think of an alternative before the government does. This could unravel the viral and social networking nature of many video properties and affect online marketing campaigns.Talking of the thin end of the wedge, is the online market coming to the edge of singularity where all online advertising dollars need to be rendered to Google? Rising ad spend at Google, Yahoo!’s attempt to buy into an ad spot market through the purchase of a 20 per cent stake in Right Media. The company’s decision to do a three billion dollar share buy back rather invest in new developments or start-ups indicate that the 3A supported bubble may be starting to deflate?