Driven by fear of losing advertisers and audience to the Internet, large media conglomerates are spending billions in a spate of acquisitions and aggressive Internet initiatives, and are likely to keep on spending.
Companies like Viacom Inc., News Corp. and Time Warner Inc. worry that they will miss the rapid expansion of Internet advertising while their own, more-traditional sources of revenue growth are slowing. Some hope to directly challenge the giant portals like Yahoo Inc. and Google Inc. — Web sites that serve as gateways to the Internet. Others are transferring some of their most valuable content to online sites, even though that risks alienating their traditional distribution partners.
“Traditional distribution partners.” Like a cross-country runner in cement sneakers, legacy players can see the finish line but can’t seem to get their feet moving that way. Going through the motions and trying to “buy” the channel screams out of old-line thinking isn’t going to get it done. When rules change, your game has to change.
Are you doing the same thing? Remember push vs. pull. (see: They Just Don’t Get It) Denying this shift is akin to lamenting the halcyon days of 50ยข gasoline; it’s a new world. Dig deep, pay up and keep driving.
