Sunday, October 14, 2007

Journalism Is A Business: Show Me The Money

THE MASS MEDIA IS largely dependent upon advertisers. They provide the funds that pay for programming, including the news.

So what happens when advertising disappears from the mass media?

A New York Times story today reports: Nike spent just 33 percent of its $678 million United States advertising budget on ads with television networks and other traditional media companies. That’s down from 55 percent 10 years ago, according to the trade publication Advertising Age.

The story continues: Somewhere along the path toward big-box stores and blockbuster brands, mass advertising lost a good part of its impact. Consumers began splitting their time on the couch between more and more diversions — video games, instant messaging and hundreds of TV channels. Content exploded on the Internet, with free articles and videos available whenever consumers wanted them. And for some people with digital video recorders, the idea of watching a television commercial has started to seem quaint.

If advertisers don't pay for programming, where will the money come from for programming like The Simpsons, 60 Minutes or Desperate Housewives?

And if quality shows go, will news follow? Or will news and reality television remain since they are the cheapest forms of television to produce?

Could this lack of advertising actually be a good thing for society?

2 comments:

Anonymous said...

Advertising can occur on shows during the shows. We see this now most commonly in sports programming. Overlayed advertising can be highly effective because it can be inserted during the shows most dramatic scenes. Even with the increase in on-demand versus online viewing of video, we still see comcast growing. Sirius satellite is begining to offer satellite television for Chrysler Town and Country, and I wonder if there business model will only include subsription costs, with no ads, such as there radio service currently offered.

I see more interactive viewing, such as posting comments or feedback on an internet site about the content, giving users a platform to talk about what they see. We already see shows like American Idol, which is reality based, allowing users to vote via text messages, allowing some level of interaction.

Scripted shows are still very popular. Although we have a seen recent rise in reality programming, I don't think the reality shows can compete with the expensive shows and the quality of the content produced.

Justin Horn

Anonymous said...

Oh yeah Geo! A proliferation of reality tv shows in the place of 60 minutes is really what is best for society! Seriously?