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Recently minted News Corp. COO Chase Carey didn't waste any time publicly re-entering the News Corp. fray last week when he identified the industry's biggest problem: The free-TV model is broken and someone needs to fix it, and fast.


Carey joined a growing group of industry bigs now openly admitting that the broadcast model no longer functions for huge media conglomerates. We have an ad-supported business model that doesn't work. We need to get value for our great event product like the NFL and American Idol, he said, echoing comments by his boss Rupert Murdoch and previous statements from NBC Universal chief Jeff Zucker. We need to build new distribution models in a digital world that generate real value for our product.
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One senior broadcast executive told B&C last week, There is room for the ad-driven model to work online, and the on-air part of the broadcast business model will see an incremental revenue stream....A two-revenue-stream business model is twice as good. The person added: The business model has to evolve. There is a real awakening to that. It's not, 'Oh ****, we've got issues.'
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Research chief David Poltrack PowerPointed his way through TCA demonstrating why online video ads are worth more than those on TV. It's just a shame that digital operations seem to be having the same problem attracting ad dollars as everyone else.
http://www.broadcastingcable.com/art...s_the_Fix_.php
 
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