• by April 21, 2005

UNTIL TODAY, WE THOUGHT WE WERE BEING A LITTLE HARSH ABOUT THE TV NETWORKS' PROSPECTS FOR THE FUTURE -- That was before the release of a new report from management consultant Deloitte's Technology, Media & Telecommunications Group. It wasn't the title of the report, "Television Networks in the 21st Century: Critical Mass in a Fragmenting World," nor the substance of its content, so much as it was the way Deloitte's press release so succinctly summed it up: "Television Networks Threatened with Extinction: Change or Die, Says Deloitte Report." Okay, so we know Deloitte's PR team doesn't like mincing words, but what about the substance of the report itself? We know things are getting rough for the networks, but why the doomsday scenario?

Because "today's consumers are seeking content across an expanding array of transmission media, channels, interactive platforms and devices," says Tony Kern, deputy managing principal, of the Deloitte unit. "Audiences will splinter into many smaller pieces, even in countries that have undergone fragmentation for years. Networks will no longer attract mass audiences, and therefore they won't be able to charge premiums to advertisers. Their legacy business model will no longer be viable."

Oh! Well, in that case, why bother with a report at all. If the networks are doomed to dust, why not simply let them go bust? Because there's a way out, silly. If only they follow Deloitte's advice and figure out ways of exploiting the explosion of demand for content across all forms of media.

After all, Kern notes that cable subscription revenue "has tripled since 1997, and DVD revenues have skyrocketed by a factor of 15. New mediums - such as Internet Protocol Television -- have the potential to drive revenues even higher."

The report offers some hope for the network TV model, but only for networks that successfully adopt to "this new world by minimizing the fragmentation of their audiences and generating income from entirely new activities, including:

* Offer content and programming across a variety of media channels and formats.
* Re-package and market content - not just as products but also services.
* Significantly extend the content's lifespan, by offering more digital content that can be quickly and easily packaged, and sold or rented across a wide range of media - including physical packages such as DVD, VHS and memory cards and electronic downloads via wired and wireless networks.

If you want to learn exactly how to do that, you'll have to obtain a copy of the Deloitte report. And if enough people do, that would be a surefire indication that management consultants are not facing any imminent threats of extinction.