Saturday, July 26, 2008

New Order

There are only three media companies that count now in the UK, they are the BBC, Google and Sky.

Small things are sometimes harbingers of a wider picture. The above conclusion was precipitated by the news that one of the presenters of one of the UK’s major TV channel’s longest running programme is resigning after reportedly having her salary cut by 90%.

This shows that UK commercial channels are having to face reality. The only place ‘stars’ will be able to find the salaries that they have grown accustomed to will be the BBC, who can liberally spend taxpayers’ money as they see fit, paying ludicrous salaries that would never be matched in the commercial sector.

So, where have the commercial channel’s stars’ salaries gone – well to largely to Google. The vagaries of TV advertising have been replaced the measurable certainty of click thru advertising.

Sky is largely immune to the advertising model, deriving much of its income from paid for TV and using sports as the leverage for this.

The media world is set to become a much poorer world, unless you tax your viewers....

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