Monday, April 7, 2008

BBC goes digital

The plans BBC has concerning the Internet and the expand that comes with its use upsets not only workers but also private media companies.
The BBC employees fear for their jobs after board members approved salary concessions and job cuts.
On the other side there are the private media provider such as NBS Universal as an example. Companies like this fear for the loss of viewers and advertising revenue. Since BBC is financed by tax payers, the media corporation does not depend on income made by advertising which gives BBC an advantage that could be lethal to its competitors who depend on advertising revenue which is hooked on the viewers.

If BBC does put its entire content online, the advertising industry will certainly not be untouched. As mentioned, BBC does not depend on advertising money - at least up until now. Time will show how the UK government thinks about this very fact if BBC makes a fortune with its expanding plans.
Therefore BBC could easily dump prices for TV spots on BBC America and endanger competitive corporations who ask for lots of money for theirs advertising space.
Further, BBC will be able to offer a very fine geographic – maybe even behavioristic – segmentation for advertisers. Depending on what show is seen where in the world, ads can vary and addressing a message to a target group that it might be simpler as 1 + 1 in the future.

But then on the other hand I don’t see any danger as of today. Not to workers – BBC created 700 new digital jobs – and not for competitive corporations. At the end it will be, just like always, the viewer who decides if BBC’s Internet- and expanding plans will be a success – or just another try in a hype.

1 comment:

camccune said...

Good analysis. 10/10