why are media executives so dumb?
September 30, 2006the new york times has an interesting story about youtube today
the article is about youtube’s future, and how it is going to deal with media companies and their possible copyright infringement claims. the times talked to a lot of media executives, and provides some detail on how warner is working with youtube to make their recently announced media sharing deal work. that deal is quite interesting since it shows how one media company realized that what they have are individual brands (their music stars, their tv shows, their movies). warner is not a brand that matters anymore, but green day or the flaming lips, they are brands that matter. and music videos are a good example of how some media execs twenty years ago created a new art form that in itself did not generate money since fans did not buy videos, but music videos created buzz, they made an artists (or brand) more visible, get more air time, which then would lead to more album and concert ticket sales. so in today’s wold where we live with youtube these music videos have just found a new channel and why does it matter if a fan posts it or an mtv? it will actually get more street-cred if a fan posts it.
that leaves us with tv shows that are frequently posted on youtube. a good example is the saturday night life skid that got big only because of youtube. who would have heard of lazy sunday without youtube? did saturday night life’s ratings go up the weeks after the skid became one of the hottest internet videos? i bet it did. and what did nbc do? tell youtube not to post snl videos anymore. can anyone explain this logic to me? here you get free advertising and brand building by your fans and all nbc can think of is to deny it and force people to go to nbc.com. the problem with this is that nbc doesn’t matter anymore, it is snl that is the brand, and youtube is the site people go to look for videos. if snl is not on youtube it is just as if the snl brand doesn’t exist on the web. media companies have to stop thinking about umbrella brands and try to force users to their sites first.
nbc has an interesting quote in the article which just shows how much they care about their fans…
“The yin and yang of working with YouTube is you want to use them as a way to promote our programs but we don’t want to give away the store,” said John Miller, the chief marketing officer of NBC Universal television. NBC has bought advertising on YouTube and uploaded clips promoting shows like “The Office.” And it has also actively demanded that the site take down clips from “Saturday Night Live.”
yes, it is ok if youtube is just another channel that is owned by media companies, but if the media consumers want a say, well then the whole thing is becoming a bit tricky, the best thing is to have a dumb client, and that is how they view their customers.
the daily show and the colbert report seem to be getting it (at least so far), no caring much about fans posting parts of the show online. what they seem to realize is that by allowing it the brand of the two shows is increasing and spreading, expanding their audience. and thanks to the innovative developments at youtube daily show clips are integrated into blogs (like this one) and are made part of conversation and discussions.
youtube should be seen as a blessing to media companies, but all media companies can see are lost revenues, but that is not the case since those revenues that they think they are loosing, they actually never had (or would get), but the brand building they get from youtube is going to increase the brand revenue, although the brand has changed from the media conglomerate to the actual product.