Viacom is embroiled in another (surprise) dispute over their content. If you live off the grid somewhere or don't like TV here's the deal: Viacom wants to raise the prices for their 19 channels (including MTV, Nickelodeon, and Comedy Central) and Time Warner Cable doesn't want to grant it.
Viacom just cannot seem to get with the program since advertising sales went flat. What they need to do is forge a partnership with booming sites like Hulu in order to start monetizing their content better, NOT up the charges on the end consumer. Whereas 10 years ago, consumers would have no choice but to pay the fees they can now simply go online for their favorite shows.
It will be interesting to see who wins this one.
~~ Caitlin
Wednesday, December 31, 2008
Dear Viacom: You're Doing It Wrong Again.
1 comments:
I agree with you, Caitlin. Maybe this is karma for Time Warner for pushing the Big Ten Network on us. Marketing and advertising budgets are down across the board and Viacom is no exception. This will obviously continue in the next few years.
Remember the Apple commercial where the guy put 80% into marketing and 20% in R&D? I think it is a lose lose for both. Diversification in media outlets is the key to regaining advertising revenue. It is a reflection of our society in general with everything economic. Old business models are doomed to fail if they cannot predict future trends. In their defense these are the same people that got burned when the internet bubble burst so many years ago. Buying power.
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