The Fragmentation and Consolidation of the Broadcast Network

The broadcast networks reaction to slumping ratings has been completely fascinating. We know that they're down about 10% from last year, and will continue to plummet after there's just reality tv and reruns left. But do the viewers leave the set altogether, move to cable, or spend more time online? With expanded online efforts, much of those ad dollars can still be kept within the same companies, at least for now.

While these networks lose steam on television, they’re still picking up in other places. With distributed platforms like Hulu, which spans across multiple properties from myspace to aol to msn video and beyond, they seem to be recreating a model that has fed the networks for forever, gain the assets that allow control of the eyeballs. Much like when those same networks adapted from radio to television, they have the talent and resources to maintain a competitive advantage. But unlike the previous shift, the cost of distribution has dropped dramatically.

But as I've been ranting about, it's still mostly a factor of money and filters at this point. Google, Yahoo or Amazon has just as much chance to become the next big network aggregator. Someone has to fund the shows, and then someone has to filter out the crap and let the good stuff be easily found. And there's no reason for that to be the traditional network system that they're trying to recreate on the web.

And of course, there’s also a much bigger piece of the pie for us, as well. With the addition of new content networks, it looks like we’ll have a future of consolidated fragmentation. It’s all musing at this point, I guess. But it’ll be a fun ride.