Thursday, February 02, 2006

Big Media Held Hostage by Stockholders/Stakeholders

I recently responded to a post about how Google is stealing local advertisers out from under big media, and that big media is helping Google do it - via AdSense. Then it hit me, stockholders are holding big media hostage. Big media can't make the necessary changes to address the changing landscape, because they are constantly measured by standards set by stockholders.

Here's my train of thought -- Google's acquisition of dMarc Broadcasting will allow the company to replicate its AdSense model on radio, and if it works, I suspect they will later expand to TV. I also suspect the implementation for radio and eventually TV will resemble something similar to (but with peer-to-peer production). At issue, Google is going to establish more relationships with small local businesses, while broadcasters focus on big fish. Why? Because CEOs in these major media companies (except a few) are too consumed with issues in front of them (stockholders, margin, etc.) to understand, or react to this. It's like trying to turn the Titanic by committee. As CEO you may be captain, but you have to make sure everyone on board is OK with the move, or suffer the consequences. So, I bet big media (most, not all) will continue to let Google run AdSense ads on their sites (because it is free money), and will soon begin doing the same with their broadcast signals (because it is free money).

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