Thursday, March 03, 2011

Convergent NewsCorp Fly Sky High

So, it's a done deal and NewsCorp's stranglehold over the UK broadcast marketplace is nearly as complete as it can be. At the end of the day Murdoch has given up a loss making liability and added a huge asset to NewsCorp's balance sheet - well, he will have if the BSkyB Board and shareholders play ball.

So, what next ?

Well, a number of commentators have predicted broadband + content bundles (think about it, this is the existing model for BSkyB which can be extended to newspapers now).

There is little doubt that there will be a play for the telco market in a more meaningful way, although this may skip traditional GSM networks and go directly to IP and mesh networks.

Content is an interesting area to watch with Shine back in the fold. There are clear opportunities with the relaxing of product placement rules, for example, for some innovation where content meets commercialism and to engage with brands in a more expansive way.

But the overarching theme will be vertical integration - we're moving into a period when there will be little differentiation between technical platforms and content services, a la iTunes. It wasn't what I recall 'convergence' meaning when we started talking about it over a decade ago, but this is the new reality of the media world.