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Broadband media: look before you leap
31/08/2001. Source:McKinsey Quarterly. Scott A. Christofferson and Michael A. Gatzke
 Broadband technology, infrastructure and economics are still inadequate says this article from the McKinsey Quarterly. But on a positive note, broadcasters are far more secure from attack than they were at the dawn of the world wide web
Given the current economics of the business and the constraints of technology, broadcasters shouldn't make huge investments in broadband programming just yet. Instead, they should experiment with a portfolio of programming options.
Some 40million US households will gain access to broadband in the next three to five years. As consumer use proliferates, so do predictions that broadband will revolutionise television and video entertainment. Probably, it eventually will, but for now only the simplest forms of enhanced TV and streaming-video programming will be profitable - though not profitable enough, in a million-channel world, to defray the high cost of creating and distributing shows that permit viewers to decide how they want plotlines to unfold or when they want to watch.
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Taken from The McKinsey Quarterly, 2001, Number 4
The McKinsey Quarterly, a journal in print and online from McKinsey & Company, featuring the latest thinking on business strategy, finance and management.
Copyright © 1992-2001 McKinsey & Company, Inc.
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