Thursday, November 08, 2007
Industry Note: How the Mediaconomy Died
Apparently, Michael Eisner thinks next-gen media is like...transportation.
"...At the moment, Eisner said, digital media is too new to be profitable. "The studios are there because they don't want to be in the transportation business and telling everybody that they're in the train business," he said. "They want to be in the entertainment business, and God forbid they should forget yet another distribution track." In other words, they don't want to get left behind."
Zomg the lulz.
Wow, what a great analogy. See? The trains are like content, and the tracks are like distribution. And what consumers are doing is like little minicars going backwards on the tracks. And Google is kind of like a bunch of helicopters floating in the sky watching the trains.
Jesus, I think my kid sister has a better grasp of media economics than that. No wonder these clowns killed the media industry.
Hmmm... I read that quote as referring to the often-seen statement about train companies in the U.S. focussing too much on the trains and not on the transportation, which is why they were made obsolete by other forms of transportation. I can't find a source within 10 seconds, but I've seen it a lot.
And if I read it like that, it makes sense to me. The studios don't want investors / Wall Street to think they're not 'getting' new media / overly focused on old models.
Eisner's use of the term 'distribution track' is unfortunate, as it echoes the train company metaphor. 'form of distribution' would have made it clearer.
that's a nice catch...if that's what he meant :)
I agree one can't be sure ;)
Here's the link you are looking for. http://en.wikipedia.org/wiki/Marketing_myopia
Wikipedia is great...better than my memories from MBA days.
I think Eisner was trying to say that media (esp. the networks) think they are in the TV or entertainment business. When in fact they are in the "collecting audiences to show advertisements or sell movie tickets/DVDs to" business. But broadcast networks in particular aren't doing that job very well these days and advertisers are thrashing around looking for alternatives. Are you a friend of CherryCoke on MySpace or Sprite on Facebook? Lame.