2024-06-18 17:38:05
Mindjack – Piracy is Good? Part Two: The New Laws of Television middlemen/Scrapbook/tv

There are two principle components of the new value chain of television hyperdistribution: the producer and the advertiser. An advertising agency is likely acting as an intermediary between these two, connecting producers to advertisers, working out the demographic appeal of particular programs, and selling ad payload into those programs; this is a role they already fulfill – although at present they work with the broadcast networks rather than the producers. There is no role for a broadcaster in this value chain; the audience has abandoned the broadcaster in favor of a direct relationship with the program provider. That said, the broadcasters are uniquely qualified to transform themselves into highly specialized advertising agencies, connecting advertisers to producers; this is something they already excel at.

This is clearly a viable economic model: the producer gets paid at least as much for their programming as they would have received from a broadcaster, and probably more; the advertiser gets a cheaper ad buy; and the audience continues to receive free television programs. This is a win-win-win scenario, unless you're a broadcaster.

via Mindjack – Piracy is Good? Part Two: The New Laws of Television.

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