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News
Old Media Vs. New Media: It’s War
Tuesday, May 8th, 2007 at 4:00 PM - by John Martellaro
The old media, broadcast TV, is still very large and not in any danger of going away soon. In addition, theyre feeling just little edgy and combative with the new Internet media, according to a Reuters story.
"At a panel discussion on the second day of the 56th annual National Cable & Telecommunications Association conference, top executives said talk of the demise of traditional media in the digital age was overblown," Kenneth Li wrote.
In some panel discussions, the tone went even further. "The Googles of the world, they are the Custer of the modern world. We are the Sioux nation," Time Warner Inc. Chief Executive Richard Parsons said, referring to the Civil War American general George Custer who was defeated by Native Americans in a battle dubbed "Custers Last Stand".
Mr. Parsons went on to say, They will lose this war if they go to war." Google was cited as one company that has "spooked" traditional media companies.
Despite the war-like terms, in many cases, companies that view each other as rivals also have been found working together. One example came from News Corporations COO Peter Chemin who said, "Were in a world where were a partner with everybody and were fighting everybody." He went on to point out, "The amount of money we get from those (Internet companies) are a fraction of those we get from the cable industry," Chernin said. "We have to be careful not to disaggregate."
Companies in the entertainment business compete in many ways, technology, services, and customer satisfaction. However, one tried and true technique to eliminate competition is simply to buy out the threats. "Youll see more acquisitions," Chernin said. "This is a world where the big get bigger. Youll see increased consolidation."
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