Frager Factor

Thursday, August 22, 2013

Cable Loosens It's Grip as The NFL, ESPN and Others Go Direct To Domain

"Think it's easy to sell banners on the Internet? There are 40 million different sites, with more every day. How much of a premium are you, the advertiser, willing to pay for one thousand impressions on this site instead of that site? That's why the CPM went from $100 a thousand to a buck in less than two years. What happens to the ad sales of your TV network when there are 40 million different TV networks? What happens to the budget for your new arthouse movie when there are millions of people cranking out their own arthouse movies?

Cable monopolies are dying and getting deader (see todays's round up under Seth's into)

 Godin's post, Monopolies Seven Years Later warns:

"Time to wake up. It just happened.

The past, the glorious, profit-making, fun past of the media business was based on:
• scarce creators, under long term contracts
• scarce retail outlets, able to be controlled with marketing muscle
• scarce spectrum (few radio stations, few TV stations)
• copyright laws (and a lack of technology) that limited theft of services
• limited power of the creators to compete without a large media company as partner

It's hard to outline a point of view that shows the power of any form of media getting stronger over the next decade. There are going to be more TV channels, not less. More ways for authors to distribute their works, not less. More ways for musicians to connect with listeners, not less. More ways for consumers to sample or take content, not less.

You were a monopolist. You're not anymore.

To succeed in the old days, here's what you needed to do (choose any two!):
1. Grab a piece of the electromagnetic spectrum, hopefully one limited by the government
2. Buy up the supply of actors or writers
3. Establish long term profitable relationships with distributors and retail outlets

Welcome to a new century. In the new century, we all have the same goal:
1. Establish a direct and positive relationship with the end user.

It sounds easy. It's not. It's scary. It's likely to wreck your business before it saves it. Doesn't matter. The truth is: businesses that don't aggressively pursue this tactic will disappear."

OF: And most of this content will be going to direct to domain. Thus the biggest opportunity in domains is NOT type-ins and traffic but call-to-action direct advertising response and HOLLYWOOD. I'll be ready when they are. So will my friend with the best 'Hollywood Domains" on the planet.

About The Author: Owen Frager is an Internet marketing expert ready to help take your company to the next level.

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