Umair Haque of the HBR has interesting take on the re-jiggering going on in the economy today. I invite you to read it, because, at its heart, Haque's point is about a simple, economic fundamental: value creation. And I think his point applies to what's happening in broadcast TV today and how we got where we are.
Value creation, in broadcast TV, has suffered in the past decade or so. Consumers wanted programming, but started finding ways not to "pay" with time spent watching commercials. The networks, in response, cut costs, by slashing budgets and production.
Then, at some point, the cost-cutting mentality started taking "The Clear" and went on a 'roid-fueled rampage.
But what if, instead of focusing on costs, the broadcast nets focused on value creation again? When you get right down to it, don't audiences make it clear that they still attach value to good programming? People still watch dramas and comedies. People still want local and national news. People still choose to engage with talk shows.
In short, people enjoy television. More specifically, people enjoy GOOD television.
This is not new. It's the foundation of our business model. But it seems the cable networks are holding fast to that fundamental truth better than the broadcast nets are. And I think that's put the broadcast nets in the bed they lie in now.
It's fine to understand the cost-pressures. It'd be silly to ignore the hit from new technologies. But the cornerstone of the business model - the value created through good TV - hasn't changed. All that's needed is a re-commitment to that fundamental (or ideal, as Haque puts it).
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