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Chirag

What you are in effect saying is that content is a commodity. One might argue that content is a commodity, yet the vehicles (newspaper or DTH platform) are brands. But is that really true as well? If one were rename the New York Times, will the two consumers of NYT, the readers and the advertisers stop consuming it? My guess is. No.

Clearly, what media companies are capitalising on is the time that a consumer is spending on their offering of media. So if you control more of the time, you are able to garner a larger share of the advertising revenue and hence (hopefully?) more profit. Put another way, media companies have the right of way (read monopoly) to the consumers homes and minds and extracting as much from it as possible. If this right of way does not exist, profitability will fall.

The above said, the question remains do media companies see the business this way? i.e. it is a commodity business

Cheers

Chirag

Where is my telly

Dear Chirag

Thank you for your comments.

I'm not sure that content is a commodity, at least not in the sense that it is replaceable.

What would happen if you renamed the NYT (assuming you don't tell people the new address)? That's hard to tell and depends on promotions, etc. I assure you this: unless you do a massive pre-launch marketing blitz, or get Yahoo or someone else to link to your stories, on the launch day you will have very few users.

Do companies capitalise on attention? Sure. That's as true in the web as it is in TV. I don't think this is a monopoly though--in TV it is at worst an oligopoly, but the web is much more pluralistic (power laws notwithstanding).

All the best.

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