Posts Tagged ‘NBC Universal’

The Solution to the Net Neutrality Debate

Saturday, November 21st, 2009

During discussion this past Tuesday in Kathy Gill’s Net Economics class at the UW MCDM, my breakout group went over the subject of Comcast’s bid for NBC Universal.  Now, when I first heard about the news a few months back, my mind went straight like a bullet to the word “anti-trust”, like so many other people apparently did.  The implications alone for net neutrality didn’t even have to trigger such larger concerns for me – because the idea of the biggest cable provider in the US owning one of the biggest media content producer/distributors in the world just stank to high heaven on its own.  Granted, Time Warner is number two in the cable game across the country and has a massive cadre of cable nets itself, but a juggernaut in the form of Comcast NBC Universal was a daunting concept regardless.  Of course, in adding net neutrality to the discussion, knowing that if the Right gets its way and the Internet becomes a deregulation playground, the thought of a top-to-bottom Comcast MSO* experience, from the consumer’s vantage point, one which throttles its competitors’ content and makes it impossible to get away from 30 Rock and Jim Carrey, well, that becomes a frightening thought indeed.

Then it hit me… or the gist of it hit me and I have finally formulated it all (and I have my discussion mates and Kathy to thank for spurring this on, of course)…  if you want to save the Internets and preserve network neutrality, let Comcast buy NBC Universal. Heck, let MSO’s buy whoever and whatever they want.  It’s time for daddy to give the big content producers away and let them get married to all those big infrastructure providers who have come-a courtin’.  But, before you scoff at this, allow me to explain. (more…)

Post-class Reflection: Economics 101, courtesy of Monday Night Football, Chris Anderson, and Mickey Mouse

Friday, October 30th, 2009

Epic MickeyI’ll explain what this image is about momentarily, but first, let me begin with a prologue.  Tuesday night in my Net Economics course at the UW MCDM a lively debate, to say the least, was had over Chris Anderson’s new book “Free”; whether free as a concept was good or bad.  I took the free side, but it made me feel a little lonely.  I almost felt like I was the only student in the room who believed that it’s a good thing that we’re moving towards a digital economy based on giving bits away, harnessing business models that find alternative sources of revenue.  For instance, a fellow student mentioned that Microsoft has a 90% market share of netbook operating systems, a testament to the strength of their software, no doubt.  However, I posited that if MSFT went the Anderson route and gave their OS away for free they could have a 100% market share.  I’m not going to say what the reaction to that was, but considering our proximity to Redmond and the makeup of the class, which includes Microsoft employees, you can take a wild guess…

Anderson’s “Free” starts out by giving us a quick economics briefing, using that as backdrop to defend the notion of ‘free’.  He explains that, for instance, traditional, or old media has used a third-party advertising model to earn revenue while still providing a “free” product.  I may not pay for 30 Rock, but when I buy products advertised during commercial breaks on TV or in interstitials on Hulu, I am still giving my money to NBC.  It’s pretty basic and has worked for Google, a benevolent empire that has largely amassed their wealth through selling advertising and diversifying revenue streams.  Of course, the model isn’t absolutely identical – the web magnifies things by presenting opportunities to apply wisdom gleaned from specific metrics and target users with relevant advertising, as well as ways of satisfying niches with long tail services – but the principle is the same: subsidize one product (free content) with money made from another (paid ad space).  Multiply and diversify.

With the notion of one product funding the other in mind, I further illustrate the point by explaining how I helped inadvertently save ABC, Monday Night Football, and the Disney company in 2004.  Maybe.  Or not.  But keep reading!  I think you’ll enjoy the reasoning anyways!

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