Tag Archives: Strategic management

May 26, 2015 · 10:09 am

TV And Disruption

I have been thinking about a conversation I had with someone about the future of TV. OK, to be totally accurate, the chat was about the massive disruption that’s going on across all legacy media – newspapers, magazines, and radio as well as TV. I said that while that disruption is just now really beginning to be felt on a mass scale by TV, the TV industry seems to be learning from the mistakes made by newspapers and radio. I thought those learnings would help mitigate the disruption somewhat. Let’s see what you think.

Over the last year you’ve probably watched less live TV (other than sports and breaking news) than you have in the past. You’re not alone – live viewership of broadcast TV is down 30 percent since 2008 according to some measures. Time-shifted viewing is up quite a bit, however. Obviously it’s not a lack of interest in the programming but a desire to watch it on the viewer’s own schedule via whatever device is handy at that time.

Unlike the newspaper folks, who vigorously resisted the “what I want, where and when and how I want it” reality of the digital transformation, TV seems to be getting it. In fact, total overall consumption of video based content is skyrocketing. Admittedly some of that is from non-TV content sources (YouTube channels, etc) but as more TV content becomes easily available to cord-cutters and cord-nevers, I suspect what we’re seeing with CBS (CBS primetime is generating more viewers now than it did in 2003) will be true of most TV networks.

Some of my former colleagues in TV are finding ancillary benefits as well.  None of us were ever delighted with the Nielsen ratings system and the vast amount of viewing and audience information that’s now accessible through other channels is incredibly useful from both a programming and a sales perspective.  Frankly, the TV set is the viewing channel from which we get the least data and what information we do get is probably the least accurate.

All of the above is a long way of saying that despite my occasional jabs at TV clinging to their old business ways and traditional business model, I do recognize that they’ve quietly been changing and adapting to the new realities of digital disruption.  It’s encouraging and a good lesson for any business.  Do you agree?

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May 21, 2015 · 11:17 am

Faust And Facebook

You might be aware that Facebook has started yet another new program with a few publishers.  Called “Instant Articles”, the program lets a select number of news organizations publish stories directly to Facebook and the publishers keep the ad revenue. There are nine launch partners, including BuzzFeed, The New York Times and NBC News.  If you use the Facebook app on an iPhone you might already have seen it.

Facebook logo

(Photo credit: Wikipedia)

A number of news reports have used the term “faustian” to describe the program and I agree.  You’ll recall the legend of Faust and his deal with the devil – he got something he wanted in return for the devil owning his soul (and eternal damnation!).  While it’s a bit of a stretch to equate Facebook with the devil, it’s an apt metaphor.  All publishers – especially those whose business models are dependent upon lots of content views – want greater visibility.  Facebook is the largest platform and in this case the publisher can monetize those views.  Makes sense, right?

Not really in my view.  Sure, if you’re happy with “one and done” traffic it’s fine but this is no way to build a loyal audience.  Many of the publishers I know count repeat visits as a KPI.  This doesn’t build that.  It’s especially bad if any of your model counts on subscription revenue.  The breadth and depth of your content offering – the quality that drives the justification for the subscription – is negated.

Facebook controls the terms of this news-publishing deal.  Ask any brand if they’ve experienced Facebook changing the game in the middle of play and they’ll say yes.  After all, this is the platform that encouraged brands to build pages and followings and then took away news feed access while encouraging ad spend.  Who is to say that this program won’t change again in a few months?  It’s especially troubling that news outlets will be able to publish so-called “branded content” directly to Facebook.  I’ve made my views on native ads that are indistinguishable from your own news content well-known.  Embedding them on Facebook makes them even more difficult to identify as sponsor messages (and who is to say when Facebook will demand their cut).

Don’t misunderstand.  I see high value in using Facebook both for publishing and for advertising.  I just think that abandoning the efforts to drive users to your own platform is ultimately self-defeating.  When you think about it, Facebook doesn’t produce content. They produce a platform but users and brands populate that platform with the real value – content. Companies that don’t produce value in the long run disappear and if you’ve put your eggs in the Facebook basket rather than continuing your own efforts, it really may be a deal with the devil.

Make sense?

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May 19, 2015 · 11:06 am

Broken Strings And Business

I would be remiss if I didn’t mention the passing of B.B. King. While I have been to hundreds of concerts in my life, at one point I had seen B.B. King more than anyone (yes, even Springsteen although that’s no longer true). He has been rightfully honored over the last few days by every guitar legend – Eric Clapton being the most prominent – as having been a huge influence on their music. When he wrapped his fingers around Lucille, his guitar, he could say more in three notes than most guitarists can say in an hour.

English: King performing at the Fox Theater in...

(Photo credit: Wikipedia)

Of the dozens of times I saw him, one night in particular stands out and as it turns out there is a business point to be made as well. B.B.’s shows always began with the band playing a number or two and then the master would hit the stage. This particular night he played his first song and began his second when a string broke on Lucille.  It would have been incredibly easy for him to have signaled the band to stop because it was very apparent that a string had snapped.  Instead, as he continued to sing the lyrics, his right hand reached into his jacket pocket and out came a few strings.  Singing all the while, he proceeded to change the string, tune it as he played, and finished the song without missing a beat.  The audience stood as one when he finished, not because the song was a show highlight but because of the master class we had just seen.

The business point is one that I think we all know.  Strings break in all of our businesses from time to time.  The customers don’t really care even when they’re aware that something is amiss.  The broken string is your problem, not the customer’s.  How prepared are you?  Can you go about your business of providing an uninterrupted product or service of the expected quality or do you stop the band and make the customers wait?  B.B. King didn’t play a different guitar every other song.  He stuck with Lucille, so waving a roadie out to swap instruments wasn’t an option (and I could go on here about loyalty and consistency but you’re already there).  He probably had those strings in his jacket every show and rarely needed them (this was the only time I ever saw them come out in dozens of shows).  Do you have strings in your pocket or are you looking for a roadie to bail you out?

I’m sad The King Of The Blues is gone but thankful for all the joy he gave me and the inspiration he provided to many of the others whose music I love.  I’m also appreciative of his professionalism and have learned a little from his broken string.  You?

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