TREotM: Monetizing the New Media Mix: Or, That’s Not So Simple

The Revolutionary Evolution of the Media is a book in progress Go here to read the previous chaptersIf you program something you need to get paidamp160 The writers producers actors and production folks need to get paidamp160 The distributor needs to get paidamp160 The infrastructure needs to get built and maintained and the owners yep need to get paidThatamp8217s not so easy anymore even though video programming is in another amp8220golden ageamp8221 of qualityTelevision amp8211 as opposed to the broader definition today of video programming amp8211 grew up with plentiful advertisingamp160 Cable television networks added subscription fees to the mixamp160Very early on some startup cable networks paid to be distributed by local cable systems sort of like overtheair networks paid local affiliates That didnamp8217t last very long amp8230 certainly not as long as broadcasters enjoyedUp until Congress decided to allow a headsyouwin tailstheylose carriage model for broadcasters negotiating with Multichannel Video Program Distributors the adbased model for overtheair programmers ruledamp160 The Congressional redefinition of what was once called amp8220must carryamp8221 allowed broadcasters to add a persubscriber fee the revenue mixWhen that happened MVPDs rebelled and initially refused to pay a per sub fee to socalled amp8220freeamp8221 televisionamp160 Instead a couple of the biggest MVPDs took up an idea that a couple of broadcasters who also controlled cable networks suggested amp8220How about paying us for another cable network and weamp8217ll allow our broadcast network to continue to be amp8220freeamp8221amp160Thatamp8217s how subscribers got another ESPN channel from then owner ABC and another this or that additional channel from the other major broadcast networksThat went on until it became clear that the oncepredicted 500channel universe would simply be too many channelsamp160Meanwhile all of those additional cable networks began to cost too much in order for the MVPD to make enough profit amp8230 so subscriber rates began annually growing at ever increasing marginsAnd then the realization that too many networks meant no more new networks which meant the amp8220freeamp8221 TV station content would demand real dollars for retransmission rights and that meant even higher subscriber feesAnd then subscribers started rebellingMeanwhile streaming services like YouTube and Netflix arrived via the broadband infrastructure built on the backs of programming feesAnd more and more video began showing up embedded in a wide variety of Internet web sites amp8230 The Wall Street Journal The New York Times Bloomberg and almost every local newspaper launched video services inside their online versions of their print productsNext Chapter 13 Part 2 amp8211 The History of Media Income ModelsThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaVillageMyersBizNet management or associated bloggers

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TREotM: Monetizing the New Media Mix: Or, That’s Not So Simple

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Paul S. Maxwell

"About That with Carl Mayer:" Alaina Donnellon (Episode 6) - By Carl Mayer

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