Posts Tagged ‘warner’

The irony of ill-advised strategic thinking

Thursday, 28 February 2008

“[Warner’s] Rosenblum sees a future in which studios spend heavily on marketing to bring consumers directly to their doors”

I’m sorry, don’t they do that already? That’s the way TV works today. The cost of marketing is always the largest ticket item in any film/show budget. It is a market that due to spectrum scarcity and the 24hr clock, can be dominated by spending money on marketing to influence demand at specific times of the day and create a blockbuster.

The game is different now. There aren’t 5 major studios any more, there are millions of individuals not to mention all the new independents created through the WGA strike. Long-term, can Warner Bros (or anyone acting like a studio) spend enough on marketing? Can they create enough blockbusters? Can they live with the losses?

On the internet, the playing field is level. Zero cost distribution rewards good quality content. Warner should invest in production.

The irony is that Rosenblum isn’t forecasting the end of network TV, he is forecasting the end of Warner Bros!