Media Empires & Philosophy

A one off perhaps?

The Business

When I studied for my MA in Mass Communication one of the figures under the microscope was Rupert Murdoch -and he was/is a very interesting figure. (not just because he kept a bust of Lenin when he was a student at Oxford university).

He's only recently got married to wife number 4 (Jerry Hall)  and denies that he's stepping back from the fray.

At 86 he was/is still a significant player but the announcement that Disney is to takeover much of his empire indicates a couple of things.

1) Traditional Media is under siege - from Amazon, Facebook and Netflix

2)  Murdoch is mortal and the second generation of the media magnate's loins do not have the same driving  ambition that he did.

So this really could be just an acknowledgement that TV/The Internet  is now where media empires live.

Further to this what we can see is that Cinema is under threat as never before - 'Box Sets' offer the home viewer something the 'Picture Palace' can't provide - we've also got the possibility of affordable massive slim screens - they can be 3D or UHD and the possibility of the screens being used to provide great works of art in the home is another 'game changer'.

Samsung - Replacing a visit to the Gallery?

Why are some figures Driven?

The other question (perhaps unfathomable) is why does an 86 year old man  with more money than can be imagined (unless you're one of the modern day Titans like Jeff Bezos) carry on wanting to make the next big deal.

What did Rupert's relationship with his father Keith really mean to his son and will his dynasty carry on into the 22nd Century?

And the next changes

Perhaps we'll not know the answer into what drives Rupert (or any of us) but more will become clear on the consolidation of media companies (and the net neutrality)  in 2018 ,.

Discovery (my last employer) is looking a bit of a dinosaur adrift without visible means of support as cable cutters liberate themselves (in the USA at least) , BT (another previous employer of mine) perhaps shouldn't have got into battling (Sky UK) and the once mighty  BBC is unlikely to be able to become a league one player while it remains a state broadcaster (and what will happen to ITV?)

Landscapes and shifts

Plates shift

This week has seen further shifting of the tectonic plates of UK broadcasting, it’s becoming clearer and clearer that there is a battle around the core media/communications access and activity in the home, this is the battleground that Sky, BT and Virgin Media are all fighting over.

Sky has something like double the income of the BBC but it is not about broadcast content, Virgin Media has an interest in content to drive its business, the re-brand could help them sort out the perceptions of poor service but only if the service is resolved, I heard the Virgin brand being described as ‘Teflon coated" but even Teflon wears off eventually!

BT has to see revenue beyond broadband and may find it necessary to move its position from being an aggregator, the employment of Michael Barry, from MTV may be an early sign that broadcasting brilliance is an area of expertise where they have to look outside the ranks of grey techno suits.

I’m not sure how the BBC or commercial TV i.e. ITV, C4 and channel five should respond to the changing landscape, history tells me that Murdoch will win but Branson is undoubtedly a clever operator as his battles with BA proved and BT should not be underrated, a minor political storm has been created around limiting Sky’s ambitions

We need more people like Bruce Lacey (he looks a bit like 'Rigsby' here doesn't he?)

I had in my mind memories childhood of a crazy inventor figure, managed to work out that it was Bruce Lacey, as well as working with the Beatles and Bonzo Dog Doodah band (Viv Stanshall, Neil Innes and others) he’s known as an artist find out more about him here. Bruce is still alive and to me epitomised the English eccentric I hope there are others around who can inherit his mantle – Me, I’m certainly tempted to try.

What a week in media

ITV saga continues

Perhaps NTL got it right Sky have spent nearly a billion to make life difficult for those who want an ITV/NTL merger. RTL owners of Channel Five are also said to be considering a bid, this though methinks exposes the lack of value of their own channels.

Despite the bad mouthing that is going on ITV has what other companies want and need compelling content, the truth of the matter is that TV is now operating in a far more competitive market and ITV is not doing that badly (that’s not to say it couldn’t do better) –I still fancy a so called New Media company deal long term (perhaps Yahoo). The thing is Sky paid 135p per share and has put titself in the driving seat while ITV has no effective CEO.

As a sideline issue Sky can probably bring some pressure to its new best friend ITV on its involvement in the yet to be launched satellite version of Freeview which the BBC and other non Sky channels has been championing.

And amongst other blows to the BBC

The BBC’s battle for an above or even pegged at inflation rate settlement and if that was not enough it seems Channel four has outflanked it on a broadband TV vision.

Channel Four is to make content delivery on demand a paying proposition, this has ramifications for the BBC who are looking to put a fair amount of their content on the net for UK viewers for free, a free offering would certainly have implications for companies seeking to commercialise such a service. The idea that licence fee payers should super serve broadband users is also questionable

BT in deals

BT as well as being in the market for buying broadband users is moving out of satellite as seen with the sale of their Broadcast Satellite interests, what’s slightly surprising is that reports say they’ll retain the Occasional Use (Ad hoc Sports and News coverage events need these) element which had been the original trigger for them to seek a buyer.

BT could of course be another potential buyer of ITV PLC