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July 17, 2011 06:00 pm GMT
Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/e7M-5Lr73mQ/
Why TV Companies Couldn't Care Less About Original Online Video
Editor's note: The following guest post was written by Ashkan Karbasfrooshan, founder and CEO of WatchMojo.The rise and proliferation of cable grew the total pie for television, leaving networks with bigger businesses even if their share of the pie shrunk. While the network-to-cable shift was evolutionary, the television-to-web transition is revolutionary. Nonetheless, TV's Traditional Media Companies (TMCs) are betting that the Web is just another distribution outlet that adds reach and potential revenue to their assets and will grow their business when the dust settles.Whether or not that strategy pays off remains to be seen. After all, the Web made the music business a more efficient one, but the industry shrank in terms of revenues and profits. In any case, while the TMCs have flirted with made-for-web programming (what I call "Premium content"), they have always gravitated back to made-for-television and theatrical content (what I call "Super premium content"). Anyone who is surprised by the TMCs' reluctance to focus on premium content is either being delusional or disingenuous: there is absolutely zero economic incentive or rationale for TMCs to experiment, let alone invest heavily, in premium content. Admittedly, this is an Innovator's Dilemma at its best, but it's one thing to question TMCs for hesitating to put their offline programming online to chase pennies, it's another to actually wonder why they don't invest in made-for-web programming that has zero existing franchise and traction. Why bother?Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/e7M-5Lr73mQ/
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