Page 57 - The Channel Issue 2 2010

engaged customers that will follow your content and even pay a premium because of the unique “fit” for them.

'Multicasting' might be a way to face the on-going diversification. In this panel, the drawbacks were well known to the panelists: costs of programming, less information and research on target groups and niche audiences, concerns about establishing a ‘secondary channel’. But with an aggressive promotion and aligned programming to special interests and the opportunity to place spots for specific target groups, some success stories can already be told: whether it’s a very local ‘city’ music channel reporting from concerts round the corner (Cod music network), or a public TV network broadcasting only in Spanish (V-me Media), they found their niches and profited from low costs of operation.

Jim Trautman from Bortz Media and Sports Group also spoke of their success and how they had increased revenue by 10% with a niche multicast sports channel in just five years.

Internet, as we learned in the session on “Finance of Emerging Media”. Digital video is a rapidly growing segment, but the audience and panels all posed the question why this “channel” goes largely ignored by advertisers. Yes, it’s difficult to compare with traditional media measurements, there are billing complexities, different platforms with discrepancy resolutions, third parties and so on, but to ignore this market is not an option. Work is already underway by different trade organizations to establish standards and define terms in order to help advertisers and media work better together. The new distribution possibilities brought new challenges and opportunities along and not every change worked. Representatives from print and broadcasting discussed the combination of newsrooms, sales and finance to sell multiple platforms. The key message from this panel – “Media Convergence – The Big Picture” – was that the seemingly converging user experience often results in an internal divergence of processes and systems. Where before vertically focused business could maintain a more narrow focus of skills, they now have to merge, consolidate, and then at the same time diversify these same resources.

In another session, “Restructuring Traffic”, a panel predominately from radio networks discussed the pros and cons of various set-ups including centralised,

decentralised, and other forms of traffic structuring such as operating multiple stations from one location. Although finance was a common thread throughout the sessions, other topics covered included emerging technology, media convergence, credit and collections, licensing and fights, as well as legal, HR and operational topics. Roundtable discussions were hosted by members and panels from MSO/cable companies, print industry, chief financial officers, and the Advertising Media Credit Executives Association and Broadcast Cable Credit Association. This format of high level presentations and discussions about topics that really concern the audience seems to be the secret of the conference’s success. And MFM wants to continue that way. MFM Vice Chairman Richard Taub, Senior VP of Finance for V-me Media, who will be chairing the 2011 conference refers to the success and the optimism displayed this year in Nashville and intends to build on that momentum with a varied and exciting programme for the 2011 event. This seems to be a good attitude – so we at S4M are already looking forward to attending and exhibiting in 2011 when Media Finance Focus moves to Atlanta, May 15-17. ■