By Tod Sacerdoti
July 10, 2009
A common adage in business schools today is that the railroad companies failed because they didn’t realize they were in the transportation business, not the railroad business. I would suggest that today, broadcasters are similarly confused. National broadcasters are in the video-advertising business.
Any TV company that generates more than 50% of its revenue from selling video advertisements is in the video- advertising business. It is not in the content business, as it would like to believe. TV content is simply the delivery mechanism for video advertising.
This is an important distinction. A range of delivery mechanisms have arrived and the ensuing tsunami of available video inventory is going to threaten all broadcasters who don’t recognize this emerging phenomenon and address their customers’ changing viewing habits and needs.
To read the rest of the post, visit AdvertisingAge
0 Responses to “Broadcasters: What Business Are You Really in?”
Leave a Reply