Tuesday, April 8, 2008

MCOM 63: Weekly Blog Post

The BBC recently moved to the head of the new online media age by putting almost all of its output online.

BBC workers and private media companies have been openly unhappy about this move. The workers are upset because 2,500 jobs have been cut, particularly in the news and television divisions. Director-General mark Thompson decided to handle the BBC’s budget cut by cutting funds to these departments in order to focus on online ventures. Private media companies are also upset because they feel the BBC have an unfair advantage in the online world because they are not beholden on advertisers. The BBC does not have the same problem of loosing out on advertising revenue because their financing comes from license fees and not advertising.

The pros of going online are that the channel’s content is more accessible. People who are unable to view the program via the conventional television method now have the option of watching online at their convenience. Furthermore, as we move more and more in to the online age, where people spend greater portions of their day online, the chances of people coming across and finding time to watch a station’s program are increased. The main downside to moving a channel’s content online is the loss of revenue from television. If people are able to watch a program at their convenience online, it decreases the value of advertising on television, thereby cutting reducing revenue to the media companies.

The catalogue of programs available to users via the BBC’s iPlayer is currently far greater than any of its competitors. However, the BBC’s television programs are for the moment only available to users in the United Kingdom, although the BBC they are working to provide an international version. PBS also offers some of its programs in full online. Other media outlets such as CNN and MSNBC only offer clips of their shows. If the BBC provides international access to their shows then they will be clear at the head of this new online television revolution.

1 comment:

camccune said...

Good analysis. 10/10

...the same problem of losing (no loosing) out on advertising revenue...