[SBE] Digital Conversion PSA

[Mike Langner]

Ah -- excellent question.

One program stream, one program acquistion cost.

Multiple program streams, multiple program costs.

Multiple cuts of the same pie don't increase revenue -- they just move it
around.

Make the pie bigger -- more revenue.

Still, remembering that profit equals (roughly) revenue minus expenses, more
(programming) expenses with the same revenue (size pie) the lower the
profits.

So -- diluted (even if better served) audience?  Bad for business, say most
mass media "tonnage" broadcasters!

Mike/
_________

  -----Original Message-----
  From: sbe-bounces at sbe.org [mailto:sbe-bounces at sbe.org]On Behalf Of
A9xw at cs.com
  Sent: Thursday, October 02, 2008 2:22 PM
  To: sbe at sbe.org
  Subject: Re: [SBE] Digital Conversion PSA


  In a message dated 10/2/2008 2:57:51 PM Central Daylight Time,
mlangner at swcp.com writes:




    Diversity of content dilutes audience.




  But who cares if the dilution is owned by the same owner who looks at
multiple revenue streams from multiple cuts of the pie?

  henry
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