|reply to 88615298 |
Re: Just a question - Inflated
The other day I looked @ CBS 2011 10-k and it clearly showed that 60% of their revenue came from advertising. With that said the current broadcast market is not efficient and even if they didn't unbundle or have commercials the MOST your bill would go up 2x -- assuming no model change (which isn't gonna happen).
On top of that a VAST majority of said revenues come from the top 5 primetime shows and SPORTS which can stream commercials. So say 25% of that remains for the rest of the budget.
This is for networks w/ live sports, obviously. For the cable ones that don't have it the question remains is well are you a viable entity?
So 4 networks/cablecos own almost all the channels so they are aggregators right off the bat.
So to make the market efficient, unbundle and that would automatically sort out the BROADCAST viability immediately. If it lacks muster on broadcast, then it can go to a second tier (web, netflix, etc), or to a third tier (youtube, etc) with a impression model.
Perfect example is Arrested Dev. Failed on broadcast, Netflix is picking it up WITH NO COMMERCIALS.
The point is that commercials are not a given, and the traditional broadcast medium while spectrum-efficient it is a poor method for delivering content as needed.
They are asking us to do what they were doing 60 years ago in front of a radio broadcast-- Gather up the family like drones, sit in front of the tube, and passively watch content and commercials.
And for that matter -- look @ radio. Not charged a dime, and I can switch the channel and no goons come to get me.
Inefficient radio stations come and go. There is always someone lined up to take that radio license and fill the gap. Welcome to competition.