Content: Still King?
Time ran a story yesterday titled Content, Once King, Becomes a Pauper that discusses the fact that media companies are being forced to write down the value of their content assets in the current recession. The author—Douglas A. McIntyre—goes on to wonder if content will EVER recapture its value in a digital world.
I think you have to draw a distinction between the accounting "value," and the perceived value of content to a consumer.
If content is experiencing the same devaluation with consumers as it is with accountants, how do you explain the 20-minute conversation that I experienced around Friday Night Lights during the Super Bowl?
All it took was the comment that the game was like something you’d see on FNL to have the entire focus of the room turn from a rather compelling game to a TV show. People talked about plotlines, characters, how frustrated they were with the exclusive distribution deal done with DishTV, people with DishTV gloating that they already knew how the season ended, etc.
Given the level of passion and attention to detail, I’m pretty sure these consumers saw value in it. The consumer “value†of content isn’t necessarily decreasing, but the ability of media companies to convert that value into dollars isn’t as easy or straight forward as it has been in the past – hence the involvement of accountants.
What media companies have to figure out is how you tap into the passion I witnessed in my living room. True, it may not be as easy to make a quick buck with a DVD or ticket sale now, but people still truly “value†good, quality entertainment. After all, how many low-quality videos of cats can you watch before you crave a good, high-quality story?
Posted by Scott Brown at 12:55PM PST
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