How We All Make Money Again: Back to the Future With Re-Invention - Steve Blacker - MediaBizBloggers

TELEVISION

The early days of television had a few channels, client-backed programs such as Milton Berle's "Texaco Star Theatre" and "The Philco Playhouse," and I use to watch the test patterns as a young child eagerly awaiting a new day of programming. While freedom of choice is good it can also become overwhelming. At the end of the day a consumer has just so many hours to watch TV. Rather than continuously launching or buying new cable channels, perhaps the major networks need to rethink the business model that worked in the "good old days."

Less can be more if the programming is really good. If this is not doable then how can a network make it easier for the consumer to select the programming they are most interested in viewing without spending endless minutes channel surfing or reading an endless digital guide?

Regardless of ratings, Jeff Zucker's innovative programming move with Jay Leno is brilliant programming and needed change in the business model. Why? As Dave Letterman said facetiously on a recent program, "If I keep doing well CBS is going to move me to the 10:00 o'clock time slot." Leno is a trusted brand and highly entertaining. Whether every night is a home run does not matter. Over time Leno will build an ongoing new 10:00 PM franchise for NBC varying by day of the week and his guests. Leno will experiment and try new things and some will work. At the same time those people who switched to Letterman because they may not be sophisticated enough for Conan O'Brien now have their Jay Leno back. Bottom line, the Leno show is a very inexpensive test lab and can make money without hitting a home run.

CABLE

Why not have a consolidation of cable channels versus an endless expansion? I can understand the need for FOX News to balance CNN and MSNBC. But when there are cable channels devoted to terrifying roller coaster rides or horribly executed programs it becomes a wasteland for the viewer to get through. More importantly, can cable channels with minuscule ratings (that Nielsen has a tough time measuring) ever make money? I doubt with the exception of launching an Oprah Channel there is much room left for innovation.

NEWSPAPERS

I love my NY Timesand NY Postfor two different reasons. But unless newspapers realize they must charge for digital and look at content producers as one operation newspapers can become endangered species. Same goes for the marketing and ad sales side. A newspaper can not afford separate staffs and independent silos. Content is content; just the format and delivery system is different.

MAGAZINES

The strongest media brands with the most archaic business models in existence. While ad pages still contribute the lion's share of revenue and hopefully profits the future is already here. Few magazines are investing adequately in Digital or producing quality high traffic Web sites. Here too there needs to be one content producing organization and one marketing organization for every platform. Partnerships are needed with Google, MSN, Yahoo, even major client Web sites, etc. to leverage the phenomenal trust and brand equity that magazines do have. New thinking is desperately needed. And trips to Paris for the fashion shows for fashions no one buys are a waste of money even if everyone stays at Motel Six.

DIGITAL

Stop believing that "if you build it they will come," a great line from a movie. Bubbles are bursting all over the place as companies with huge traffic are finding it more and more difficult to monetize that traffic. Simple fact is if you create a site that's non commercial and it attracts people, making it into a commercial profit center is extremely difficult.

AD AGENCIES

Unless clients stop quizzing ad agencies to a point where a major account becomes unprofitable, don't expect big agencies to deliver great creative and outstanding media plans. Ad agencies need to make media planning and buying more of a priority along with creative. Most media planners and buyers are overworked and underpaid. Do you really need account executives who cannot produce or place advertising? Why not make the media people your account executives?

CLIENTS

Be wary of too many price promotions and special offers for your brands and look out for private label. Do not judge every ad on an ROI basis. Brand equity not only moves product and service, it separates you from your competition and private label. If anything, you need to invest in marketing/advertising more than ever. If you want to cut back, eliminate your travel department and outsource the accounting function to India.

Steve's new book You Can't Fall Off The Floor - The Insiders' Guide to Re-Inventing Yourself and Your Career chronicles his 50 year career working for over 25 different companies with 189 lessons learned and insider tips from Gayle King, Cathie Black, Chuck Townsend and 28 others; Blacker is still going strong today as a partner in Frankfurt & Blacker Solutions, LLC. His web site is blacker-reinventions.com and e-mail address is blackersolutions@aol.com

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