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Barry Diller’s bearishness on large media companies implies news by niche 3/29/07

Posted by Steve Boriss in Competition, Structure.
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TV and movie business legend Barry Diller dropped a big surprise at the end of this interview by predicting the long-term demise of large media conglomerates, and their replacement with a disaggregated collection of specialized firms. I would like to hear more from him about why he believes this because some possible interpretations have big repercussions. For instance, when applied to the news media, this could mean that he thinks there will be negligible economies of scale from operating larger news organizations, so their larger size will not enable them to provide savings to advertisers on a cost per viewer basis. This would free-up advertisers to be very picky, choosing news outlets with audiences composed of particularly good sales prospects for their products and services. Further, it would paint a picture of a news marketplace consisting of a multitude of news outlets appealing to specialized niches of news interest.

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