Media giants scrounge for new strategies
Are today's media conglomerates just too big to chart the rocky waters of the postdotcom world? That's the question asked in this Wall Street Journal story (subscription required). The article gives the example of recent top ousters of execs at Vivendi, Bertelsmann and AOL Time Warner as proof.
Today's media business was built on the idea that all kinds of "content creators" -- movie studios, record labels, theme parks -- ought to be housed within the same corporate organization. Then, those same companies began acquiring the channels through which they distribute their entertainment to the public: TV networks, cable systems and Internet service providers.
The result is a sprawling mix of businesses that each have their own set of problems -- many of which are now coming to a head at once. There is continuing fallout from the attempt to marry entertainment and technology interests, especially in the failed AOL-Time Warner deal. The combination is rife with conflicted interests, such as a cable operator and cable programmers residing within the same company, when they are normally sworn enemies engaged in brutal negotiations.