I read in Dagens Industri this morning about where television is headed. It certainly is an interesting situation right now where traditional television is making more money than ever while everybody knows that things are changing rapidly. But what exactly is changing, and why exactly are the big traditional television companies making more money than ever?
The obvious answer to the first question is that distribution is no longer bound by the traditional limits of frequency allocation and satellite bandwidth. This shifts the power balance and leads to the “content is king”-conclusion where the rights-owners will be the winners. While there is some truth to this we also know that, like with kings, great content alone needs enthusiastic followers. And here, the big well known distribution brands are still way ahead of the long tail in terms of brand preference which explains the second question because mass audiences like the ones gathering around these brands spontaneously are an increasingly scarce commodity in a more fragmented television market. Other well known rights-owning brands like HBO are better positioned here but still have a ways to go to build new viewing habits.
But in today’s article I think the author missed one crucial perspective: convenience. Look at what happened in the music industry. Piracy didn’t only win over paid CDs because of the “free” price point, but also because of convenience. The downloaded MP3 was by far more convenient than physical plastic circles. Heck, the downloaded MP3 was even more convenient than the iTunes-downloaded DRM-crippled file. Spotify brought the industry back into the game by being MUCH more convenient than any previous format, both in terms of consumption, but perhaps more importantly, in terms of communication of music.
The same thing is happening in television, and even though we don’t know yet which player will dominate this game, Magine certainly looks like a strong player. I’ve not yet received an invite, so I can’t share any personal hands on experiences, but just from what I can see in Joakim Jardenberg’s video below, this looks really convenient.
Never underestimate the power of the slacker.
This blog is written by Walter Naeslund and has been around since 2007. The blog is about the journey of starting an advertising agency and a sneak peek behind the scenes of what goes on at the Honesty HQ in SoFo, Södermalm. It is also a blog about communication & technology. The blog has gathered almost a thousand posts over the years with several longer and shorter breaks. Welcome and enjoy.