“Sorry, There’s No Way To Save The TV Business”

A thought-provoking column by Henry Blodget in the Silicon Alley Insider. Here’s his nutshell:

“As with print-based media, Internet-based distribution generates only a tiny fraction of the revenue and profit that today’s incumbent cable, broadcast, and satellite distribution models do.  As Internet-based distribution gains steam, therefore, most TV industry incumbents will no longer be able to support their existing cost structures.”

According to Blodget, the TV business models for the past 50 years have been based on:

  • Not much else to do at home that’s as simple and fun as TV
  • No way to get video content other than via TV
  • No options other than TV for advertisers who want to tell video stories
  • No options other than cable–and, more recently, satellite–to get TV
  • Tight choke-points in each market through which all video content has to flow (cable company, airwaves), which creates enormous value for the owners of those gates.

[via lostremote]

4 thoughts on ““Sorry, There’s No Way To Save The TV Business”

  1. No Sweat… I don’t think TV will ever die… it’s like a Zombie.

    And I think watching Local TV News is like ordering a meatball sandwich from Subway… cheap but you feel terrible during the digestion process.

    What kind of Camera are you using these days? The video is very crisp!

  2. Dear Goat Herder Brad:

    Didn’t mean to imply anyone was being reckless. I was just rubber necking. Would loved to have asked some questions but assumed everyone was busy. Next time.

    Oh, and, uh… don’t take that ‘TV is Dead’ stuff personally. What do they know?

  3. Hey Steve… this is Brad.

    I was running that live shot from the Mall… it was just me (driver, engineer, videographer, tech, lighting director, producer, goat herder) and a weather gal named Kasi Crimi.

    There was no threat of lightning at the time, however your video makes it look very dangerous. You should have stopped to talk with us.

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