Value Creation and Branding in Television's Digital Age

Overview

Until recently, profit in the television industry went to the owners of the conduit, the distributors of content. As the industry enters the digital age, the distribution bottleneck will disappear and be replaced by the content creators themselves. This book explains patterns of profitability from the golden age of television to the emerging digital age. Television today is not just 500 channels: it is countless millions of hours of programming stored on video servers around the world. For media companies wanting...

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Overview

Until recently, profit in the television industry went to the owners of the conduit, the distributors of content. As the industry enters the digital age, the distribution bottleneck will disappear and be replaced by the content creators themselves. This book explains patterns of profitability from the golden age of television to the emerging digital age. Television today is not just 500 channels: it is countless millions of hours of programming stored on video servers around the world. For media companies wanting to create value in this new era, including the major networks, digital branding is key. Just as consumers manage to make their way in 30 seconds through a 100-foot aisle jammed with hundreds of boxes of cereal by reaching for a box of whatever name brand product they know and love, viewers will also navigate through the vast wasteland of content by returning to their favorite digital brand.

This book provides detailed historical data, financial models, and informed discussion of profitability trends in the industry. It offers a framework for understanding and predicting profitability and describes the nature of branding as it applies to the television industry. It shows how a handful of dominant brands will emerge as sought-after organizers of content. Investors, industry consultants and executives, policy makers, students and academics will all find this book fascinating and informative.

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Product Details

  • ISBN-13: 9781567202724
  • Publisher: Greenwood Publishing Group, Incorporated
  • Publication date: 8/28/1999
  • Pages: 232
  • Lexile: 1350L (what's this?)
  • Product dimensions: 6.40 (w) x 9.52 (h) x 0.90 (d)

Meet the Author

TIMOTHY M. TODREAS is an independent consultant to the television industry and to the media industry in general.

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Table of Contents

I The Distribution Bottleneck 1
Introduction: Value Migrates Upstream 3
Where Is the Money? Content or Conduit? 5
1 The Distribution Bottleneck Strategy 11
The Broadcast Era 12
The Cable Era 33
2 The Digital Era: How Technology Broke the Distribution Bottleneck 77
Bits and Bandwidth: An Introduction to the Digital Era 78
Cable and Its Early Competitors 80
Videocassettes 82
Satellites 83
Telephone Companies 87
The Internet 89
Electric Utilities 91
Broadcast Television 92
II The Great Value Shift 97
Introduction: The Digital Dilemma 99
The Vertical Question 100
The Horizontal Question 103
3 The Commoditization of the Conduit 105
The Loss of the Bottleneck 106
How Do You Differentiate a Pipe? 109
The End of the Inflating Subscriber Fee 110
The Spectacle of Production 113
Powerful Suppliers 114
Other Outcomes? 119
Performance: Poor 120
The Real World 129
4 Where Is the Value? The Corporate Response 137
The Holy Grail of the Set-Top Box 137
The Myth of the Content/Conduit Combine 143
5 Digital Branding 155
Introduction: Sports 156
The Upside-Down Bottle 163
The Problem of Production, Part II 164
Information Overflow: The Case for a Filter 166
The Option of Agents 170
The Power of Brands 172
Endgame: A Few Dominant Brands 177
Epilogue: The Great Media Free-For-All 197
Why Television Will Win the Race to Create Digital Brands 198
Selected Bibliography 207
Index 219
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