Media analyst Harold Vogel recently commented concerning Hollywood and the Internet that "Technology is moving ahead with or without them, and if they don't try to find a new business model, they're going to be stuck with the old business, which is in decline, the problem is nobody really knows what the new business model should be yet."
In one deal, The Walt Disney Co. has teamed with Apple Computer Inc.'s online media store iTunes and has offered programs from ABC and ESPN, along with the Disney channel for $1.99 each. Some people are attempting to compare it with advertising sales for television, and this is a huge mistake.
Number one the two really aren't the same at all. Secondly, and more importantly, how could they take something that they have been doing for a few months and compare it with something that has been going on for decades? The two being compared with one another makes no sense at all.
Forrester's Josh Bernoff, their principal analyst say that "If you want to make money from television, you have to find something a million people want to watch, if you want to make money on the Internet, maybe all you need is thousands or even hundreds." Now that's somebody that knows what he's talking about.
Another analyst mentioned that digital downloads could possibly be more important for promoting shows than for generating revenue. This could be one piece of the puzzle that is being looked for by Hollywood as I know of a number of people that have offered books online in digital form for free, and then offered it in paper as a "classic" or some other form, and it has really performed well.
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