Stephen Salyer address to MPC 38
Page 3
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      Now, is my message that a new technology is going to supplant an old technology? No. That’s not what the history of the development of technologies and their introduction tells us. But that doesn’t mean there won’t be competition for audience attention and time and resources. I believe, there will be, and there will be, as there has been with the introduction of cable television, an erosion of network share, [which fell] from not so many years ago from in the 90-95 percent area, now around 50 percent of the way the audience invests its time.

     Because exceptional talent and programming are always scarce commodities, some content producers are going to benefit from this trend; in fact, as we meet here in New Orleans, I know from personal conversations in recent months that new companies are being formed and that substantial venture capital is committing to create new audio, video, and hybrid content for the internet and for direct broadcast satellite.

     Some of these companies will form partnerships with public radio and television to gain access to content brands and to loyal audiences. Others will simply offer more money for talent and programming than producers can resist, and they’ll hire them away. Still others will seek to duplicate our program concepts and compete head-to-head for our listeners and viewers. These people aren’t stupid, they see that the 22 million people who make up the universe of public radio listeners for both information and music and cultural programming are exactly the audience they want, and they’re going to come after ‘em.

     A recent issue of the New York Times Arts and Leisure section, it was Sunday, January 16, if you want to look it up on their web site, captures the flavor of things to come in two lengthy pieces: “The Web Catches and Reshapes Radio” and “Television and the Net Converge.” In the first, Clea Simon writes, “Radio, by its nature, has been limited by space, or distance from a tower or transmitter, and by time, since traditional stations present shows in sequence.” Further, in describing changes in how web radio will be accessed by ordinary consumers, Simon adds, “The ideal is something very like the familiar kitchen or bedside radio, a small, inexpensive receiver that does not have to be directly connected to a modem and that can find a place in any room in the house. Media watchers predict that such devices will be widely available within two years.”  Not ten years, two years.

     I was the guest of the Sony Corporation three years ago in Japan for the one and only leave of absence I’ve ever been granted in my public broadcasting career, and I went into the labs at Sony over a period of about three months and met with some of their leading engineers and research scientists and looked at the things they were modeling in 1996 in their labs. And most of the things we’re talking about here were being tested and prototyped in 1996. This is not any longer a major technical challenge, this is a matter of consumer acceptance and of marketing at this stage.

     In describing recent developments in convergence of television and the net, Rik Fairlie wrote in that same Times issue that the “Drew Cam” episode of ABC’s “Drew Carey Show,” one I know everybody saw, tallied 1.9 million clicks, a record for a web site event; and 277 thousand video segments were downloaded in just three hours. Moreover, about 100,000 users visit espn.com during Monday night football games to take part in instant polls and to butt heads in interactive games.  Next spring DreamWorks SKG and Imagine Entertainment will launch POP.com, a site that will transmit films, animation, music videos, live events, and performance art, all with an emphasis on comedy.

     Fairlie concludes, “Whether TV and the web develop together or separately, the possibilities are nothing short of revolutionary.”  And it seems clear that viewers who just a few years ago chose between a limited number of channel options will now have many interactive options vying for a share of their time and attention.

     The third assumption I bring is that I believe public radio and public television will be seriously if not fatally injured during this period without a radical reorientation of mission and strategy. Note the second part of that sentence: without a radical reorientation of mission and strategy. 

     And last, unfortunately, I see few signs so far that public radio or public television actually believe that they have anything to worry about approaching anything like the seriousness of the threat that I’m describing. 

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Created 3/29/2000

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