NBC Universal Chairman Bob Wright tells B&C that this is the last business cycle where an old-line media company can afford not to have at least 20%-30% of its business in digital. But he also says the digital component is not yet sufficient to boost the bottom line of companies with only “average” performance in traditional businesses… (Says Wright) “Three years from now, success will require your traditional areas to be performing at the top of their games while at the same time deriving significant income – not just revenues – from digital media.”
Right on both counts. Old media companies have to make major commitments to digital initiatives AND they need to think in terms of three- and five-year plans. But simply putting your existing content online is not enough. The companies need to innovate the technologies, not just the content. Old media companies keep getting blindsided by new technology. I’m glad Mr. Wright recognizes the urgency of change and perhaps, as part of their digital initiatives, NBCU will take some of that investment money and lead the way with breakthrough online technology.