The media emperors’ lack of wardrobe has come one step closer to the light with the release of a new book. Not only is the model broken, but its very foundation is faulty, according to author Jonathan A. Knee, an investment banker and media professor.
“The four pillars of media conventional wisdom have not changed: First, growth at all costs; second, content is king; third, the answer to all problems is to expand globally; and finally, that by embracing convergence and the Internet, they will be able to solve all their problems,” says Knee.
The Curse of the Mogul: What’s Wrong with the World’s Leading Media Companies by Jonathan A. Knee, Bruce Greenwald, and Anna Seave, lays bare the distorted correlation between growth and value. Anyone who’s worked in the industry knows the ready-fire-aim mentality of those chasing the fatted calf of convergence. Find a deal. Make a deal. Figure out how to make it work.
Many a great company lays shipwrecked on the rocky coast of profitability because they followed that siren song. Here’s the worse part: Knee doesn’t see that trend reversing–or slowing. Read more.