Regulating Media Consumption
From the July Zeitgeist…
As Brian Lowry wrote recently in Variety, both TV and newspapers are struggling to respond to the changing ways people are consuming their media. “Both are communications media, and each faces a conundrum regarding what to do about the free online consumption of their product that’s rocking their respective worlds”.
Both industries have become subject to massive arbitrage; absent of a consistent way of protecting themselves, these two media are trying all sorts of varying methods to make money: FT.com allows you to view a select amount of articles a month before asking the user to register to their details; most general news on WSJ.com is free, but the more niche articles on the markets are charged at a weekly subscription rate.
On television, there is a similar discrepancy. In the US, Disney, Fox and NBC have all aggregated their content on a free-to-air, ad-supported platform called Hulu. The site is tremendously popular, although debate rages – recently between The New York Times and eConsultancy ‐ as to its efficacy. Other networks like CBS offer free, ad‐supported
content too, but only through their website. UK networks operate under this latter mantra; you can watch our shows but only on our own proprietary website. And a long‐gestating proposition to aggregate all TV content across the BBC, ITV and Channel 4 under Project Kangaroo (exactly like Hulu) has recently been blocked by the Competition Commission. Regardless, Hulu is carrying on with plans to launch it’s services in the UK in the coming months*. If all this sounds confusing, that’s because it is.
Both media recognise that the way users consume their respective content has changed dramatically in just a couple of years. However, their collective response has been mostly in fits and starts; uncoordinated and uncertain. Consumers will not rush to embrace any model (profitable or otherwise) until there is uniformity and simplicity across a medium, and for this to happen companies must work together.
*For more news on the increasing amount of video users are consuming online, click here.