Financial and investment decision-makers are undermining the foundation of the media business, according to industry consultant Jack Myers. He worries that decisions affecting the long-term
vitality of media and advertising business are being made to satisfy short-term financial goals.
The industry can grow only "if we develop new business models that sustain the value
of the content and the pipeline, and we don't use our content and distribution" simply to milk short-term cash flow, he writes.
As competition mounts, ad and media companies have only two solutions: commoditize and be the low-cost provider, or "shift to a longer-term perspective, building the brand equity and relationships needed to generate profits when the economy rebounds."