Media cos work to stay ahead of online consumers

By Gina Keating

Apr 26, 2006 - Reuters

Big media companies must keep finding ways to reach on-the-go users and make money doing it to stay relevant in an online marketplace that values convenience and novelty, the leaders of three of the largest U.S. media and tech companies said on Wednesday.

In a wide-ranging discussion on tech trends at the Milken Institute's 9th Annual Global Conference, Walt Disney Co.Chief Executive Robert Iger, News Corp Inc.President and Chief Operating Officer Peter Chernin and AOL Chairman and Chief Executive Jonathan Miller agreed; standing still while users find ways -- legal or not -- to obtain the content they want is not an option.

"I think anyone who loses is anyone who tries to protect their traditional business. I think you've got a bad 10-15 years ahead of you if you try to do that," Chernin told conference-goers.

"What's both exciting and frightening is the pent-up demand for video products," Chernin said. "We did a survey and more than 90 percent of (users') favorite material on (video sharing site) YouTube.com is copyrighted material (from studios)."

Iger noted that consumers' appetite for user-generated content like ABC's "America's Funniest Home Videos," which debuted while he was running the network more than a decade ago, has only grown.

Chernin said there was no longer a "first mover advantage" to finding an online distribution business model that works.

"I think the best possible thing is all the experiments that are going on," Chernin said. "I would be thrilled if Bob (Iger) stumbles on the right economic formula before I do because I'll turn around and steal it from him and vice versa."