Wednesday, September 21, 2011
Netflix shift a harbinger of doom for print?
What does this story about Netflix and the company's shift away from its legacy product (renting actual DVDs) to a digital product (downloading movies) have to say about the newspaper industry? Newspaper's have their own legacy product (ink on paper) and digital versions (Web sites). Unlike Netflix, however, newspapers still generate most of their revenue from legacy rather than digital products.
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There is a fine distinction from news media and entertainment media though. News needs to get to the most people the easiest, while here in America we do mostly have a vast access to computers and different internet based technologies other places don't, but they do have access to paper. While on the other hand of this entertainment is and will always be entertainment.
ReplyDeleteIt's a catch-22 for the newspapers. They are making more money from their legacy product, because that is what they are mostly producing. If they were to switch over, they could make more money off of their digital product. But, they have to force people to go there. The catch-22 part is that they need to figure out how to get revenue from advertisers in order to successfully move over. For me, the newspaper industry is archaic... and this story seems to validate that. Going back to the first post of this week, maybe if the media were not all about money, maybe we could get some real news?
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