WILL THE WEB DO TO TV WHAT IT'S DONE TO NEWSPAPERS?
Friday, June 19 2009
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Investors are becoming increasingly concerned that video websites created by the television networks like Hulu (NBC, Fox, ABC) and TV.com (CBS) will draw audiences away from the networks themselves and never produce enough revenue to offset the subsequent losses. Home Media Retail magazine's website today (Friday) quoted a note to clients by Laura Martin, an analyst with Soleil Media Metrics, who warned, "If consumers are being retrained to pay less for professionally produced TV content, then returns on capital (ROIC) should fall," resulting in the networks trimming budgets and firing personnel. In the end the networks may be forced to turn towards user-generated content, which, Martin said, is no "true substitute for long-form premium TV content."
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