Tuesday, December 29, 2009

Old Model, New Model 

The practice of broadcasting TV signals over the air is passe in most urban areas of the US. Households get cable or fiber optic signals now and hundreds more channels than over-the-air TV can provide. Thus, it is not surprising that "free" TV channels are now trying to extract greater payments from cable operators. This is a change that did not happen overnight. It was slow erosion over decades until over-the-air broadcasters realized they had lost their airwave audiences and now have to fight for revenues from cable operators. It is instructive from business strategy perspective. One can never get comfortable with the marketplace. There is always something threatening it and the greatest threat of all is prolonged stability that causes one to lose focus.


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