A collective snicker/groan radiated out through the interwebs today with the publication of this AdAge piece on how video is like the news business was in 1998, as legions of print journalists who have seen the number and budgets of the news outlets for which they once worked steadily dwindle.
Welcome to Disintermediation 2.0, where the content is video. It’s
entertainment not news. And the stakes (at least the monetary ones) are
While everyone in online video is challenged by the reality that digital
presents to any media — measurement, targeting, accountability —
traditional “editors” are also being squeezed by the very same process
that beset news in the late 90’s.
The article goes on to (correctly) identify the growth of highspeed broadband as the catalyst for the coming collapse of the traditional broadcast video model. I’d add to that the increasing popularity of DVRs, which are teaching the audience that we don’t necessarily all have to gather at 9 o’clock Eastern, 8 o’clock central, to begin our nightly turn-off-the-Alpha-waves sessions. Instead, the time-shifting that in the 80s had David Letterman jokingly producing a “morning Late Night show” because so many of his fans were using VCRs to watch him while scarfing their ham&eggs — that has become commonplace.
This has led to a new
rating system, called either “C3” or “live-plus-three”; instead of only
counting viewers who watch shows live, Nielsen counts anyone who records
and plays back the program up to 3 days later. This captures more of
the time-shifted viewing audience. By the end of 2010, McDonough says,
Nielsen’s ratings will combine both DVR’d and online streaming content.
Sirkin, executive vice president and global research director for
Starcom MediaVest Group, sees the DVR, particularly the TiVo, as
fundamentally changing the way Americans view television. “We have three
in our house,” Sirkin says. “My 5-year-old doesn’t understand live TV;
she’s always had a DVR.”
The other effect of DVRs, of course, is the commercial-skipping. Used to be that you had to hack your TiVo to be able to skip 30 seconds at a time. Now that comes programmed directly into the remote on the DirecTV HD controller (but I still prefer the TiVo, since it skipped you automatically 30 seconds forward in time, rather than making you watch blurred fast-forwarded action).
But the biggest eye-opener for me is that articles predicting that broadcast TV, the cash cow for so long for the advertising industry, is about to head into the abyss … well, that’s news. Because what took down newspapers was not that nobody was reading them anymore – in fact, the stats show that more people are reading newspaper content than ever before.
What has laid print newspapers low is that the revenue streams from traditional print advertising have dried up & blown away.
Most, if not all, of the major media buyers that I’ve run into over the last three years at various ad industry events, have all admitted that they know that advertising on TV really doesn’t work the way that it used to. The profusion of channels on cable and satellite, the DVRs, the growth of internet, all mean that they are getting less reach than they used to. Meanwhile, they’re getting charged through the nose for that same 30-second spot.
This relationship is inherently abusive, much like the relationship was between newspapers and their advertisers. When a viable alternative comes along, and you’ve managed to piss off your customers, guess what they do?