CTV interview: why are cable companies in trouble?
In just 4 days last week, the S&P Media 500 shed $60 billion in value after Disney reported below target earnings.
Institutional investors were spooked by what they see as an industry in permanent decline as a result of the fact that people, especially millennials (media companies’ future), are “cord cutting”, using services like Netflix instead of buying cable packages.
New media is in the process of replacing old media. But why didn’t old media see the future and morph into new media? Same reason as what led to Blockbuster’s demise: The traditional way companies define themselves actually inhibits their ability to see into the future. We describe this phenomenon in detail in our book, “Why Should I Choose You?” (answering the single most important question in business in 7 words or less), and how to overcome this threat to a company’s existance.
We lead off this interview with Netflix’ announcement that it will offer unlimited parental leave (mothers and/or fathers) at full salary for the first year after the birth or adoption of a child. This will increase the heat in the talent wars across all industries and be a huge challenge for companies that operate on thin margins or are in trouble.