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Television- ripe for disruption?

June 4, 2012

Henry Blodgett in Business Insider this weekend made an aggressive argument for the demise of the television business as we know it and used a mix of personal experience and data to make his case.

The fundamentals that he raised are clear to most people

–        The demise of “live” television with the exception of sports and certain talent shows

–        The mass proliferation of DVR usage and ad skipping

–        Watching TV on non- advertising supported networks – Apple, HBO, Netflix

Blodgett’s suggestion is that cable packages aren’t offering a great deal of value right now, networks are more or less meaningless and the advertising that’s trying to reach him, isn’t.

So, what’s this going to mean?

  1. Networks turn into content libraries
  2. Cable costs decline rapidly

While common sense points to all these factors being relevant, the industry itself continues and needs to continue to believe that the network as an institution matters to consumers and that advertising on television is just as effective as it always been.

It’s obvious that we can expect countless research studies to be produced in the near future that validate these historic hypotheses as best they can.

From an agency perspective, while it’s important to recognize that now more than ever outstanding creative television advertising essential for breakthrough and its also imperative that new advertising formats are developed for this new world of television.

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