Big Media Looks to Reinvent Itself (sub required)


Big media companies are moving into new media, defined as internet and mobile content. “With the regulatory environment in Washington effectively stalling consolidation and blocking the easy avenues of growth in broadcasting, big multimedia companies almost have no choice if they want to grow, even though the new technologies remain unproven. ‘The old media companies are trying to figure out whether consumers will receive content in some sort of ad-supported format, or whether consumers will pay for it,’ said Rob Arena, general manager of the interactive division at Carton Donofrio Partners. ‘They haven’t figured that out yet.'”

They’ll figure it out, probably by trial and error. However, content is coming back into the forethoughts of people. “After some years of swinging toward distribution, it’s clear the balance of power is moving back toward content,” said Tom Freston, co-president and co-COO of Viacom during last weeks earnings call. “Technology will play a big role in creating significant new opportunities for content as we connect with our audience in new and expanding ways, be it in broadband, wireless and through other consumer electronics devices. We expect to be big participants.”

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