Old Media Becomes New: A growing pains story

I was cruising through a recent issue of TelevisionWeek, a trade magazine for TV, Cable and media types, when I was hit upside the head by an editorial on the opinion page.

I’m not easily shocked. All the more noteworthy.

The editorial titled “The Digital Picture Needs Fine-Tuning” put out a call for Congress and the FCC to lay out a clear plan for a “smooth” transition from analog to digital TV, and subsidize and legislate all manner of things from low-income household subsidies to set-top converter units to tax credits for seniors.

Wow. It went onto say that while the industry has long fought for self-regulation, this was an area where the industry couldn’t manage itself, and the government needed to step in.

Hey, I’m all for “smooth transitions” but might this smack of a large media complex trying to protect itself through a potentially rocky technology shift?

On January 2009 all TV sets are supposed to be fully digital, capable of receiving the High Definition (HD) transmissions. Old analog sets will not be able to get these signals. Hmmm.

Outside of the obvious issue with “another government program”, what’s the problem with letting this old-line media struggle a bit like all other media types do with growing pains? Seriously. Having championed *new* database, internet and loyalty marketing approaches over the last 10 years -- trying to pry funding away from old media – this strikes me as a bit funny. While old-line media got a huge portion of the typical marketing budget, starving out other options, now the shoe is on the other foot. Now they have an opportunity to have a relatively small reach, and be the new kids on the block.

I remember newsreels from the early 1950’s when one family on the block got a new TV set. It was special. Mom, Dad and the kids were all huddled around the glow of the set watching their favorite Milton Berle show. Apart from the nostalgia that holds, it also depicts the story of a new media, reaching out and stretching to stand on brand new legs.

They can have that new media glow once again…unless the government steps in to “smooth the transition” with subsidies and tax credits.

Did the horse carriage makers in the last century get subsidies to convert to motorized carriages? No. Did consumers get tax breaks to upgrade from rotary dial phones to touch tone so they could benefit from a host of services like caller ID and call waiting? Nada.

Even if Al Gore did invent the Internet, he certainly didn’t create a large government program to subsidize computer purchases or internet access. Why here? Why now?