But the pace of change may be at least somewhat manageable for broadcasters. According to Wells Fargo’s Marci Ryvicker, the growth of mobile and the evolution of the automobile dashboard will have their effects, based on what was seen at the Consumer Electronics Show.
According to Ryvicker, DISH Network will continue to be both innovative and disruptive. For television broadcasters, the impact will be mainly on the disruptive side as it continues to develop commercial skipping features. We suspect it will likely continue its hardball attitude toward retransmission consent.
Ryvicker said that a CES panelist suggested that mobile advertising will soon mushroom and could reach $10B as soon as 2015. She noted that the prediction met with quite a bit of skepticism, particularly due to the lack of effective results measurement. She said the consensus seems to be that it will be used in conjunction with billboard, rather than in place of billboard, and that the money it does siphon will likely come from print and search.
The fiscal cliff was said to be a yawner as far as disrupting business – rather, it was the election season that caused turbulence. Sales in December were up, although it’s been slower in January.
Radio is facing down rapid change in the vehicle interior space. It is believed that radio will feel the impact of new competition from an enhanced dashboard but is not in danger of being replaced. On the upside, the FM on cell deal with Sprint was seen as a boost.
RBR-TVBR observation: It should not just be about what’s new in new media. It should be the goal of broadcasters to get critics and average citizens alike talking about what’s new and cutting edge at so-called traditional media. Broadcasters need to build from their traditional strengths while at the same time pointing themselves squarely into the future. Change is constant, and we believe that the broadcasters who embrace change effectively will be leaders in this still-young century.
