Video is the New Music
Saturday, July 26th, 2008
Posted by Ryan Holmes
* This blog post is part of Invoke’s participation in the 2008 Vancouver Blogathon for Charity
For the last few years the recording industry and RIAA have been fighting an uphill battle trying to keep their traditional model alive in an evolving market. The dinosaur analogy has been used over and over again as the industry tries to keep their share (and more) of the market through digital distribution. Disruptive delivery services like itunes, muxtape, lastfm, pandora, and the countless torrent sites have fully blown apart this market leaving “traditionals” scrambling to find acquisitions and partners in order to keep some market share.
The video industry has had a reprive from the erosion of market share due to bandwidth and technical limitations inherent with video-web distribution, but these barriers are quickly fading. Video portals like Youtube, Revver, iFilm, and Vimeo have come on with a fury, but for the most part contain user generated media (UGM) and as with music, video has also showed up on the usual torrent sites for illegal download. There have been quite a few models to helping monetize content, such as advertising, overlays, subscription, paid delivery. The internet allows producers and other content owners to get directly in touch with consumers via video portals so, ultimately these portals become the new broadcasters. Where does this leave traditional broadcasters?
The demographic shift of television viewership to internet viewership is well under way.
“According to a study released by Magna Global’s Steve Sternberg, the five broadcast nets’ average life median age (in other words, not including delayed DVR viewing) was 50 last season. That’s the oldest ever since Sternberg started analyzing median age more than a decade ago — and the first time the nets’ median age was outside of the vaunted 18-49 demo.” via http://www.variety.com/VR1117988273.html. Without control of the delivery mechanism, and a declining viewership, traditional broadcasters stand to loose.
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