Chapter 28

Media Consolidation: Content Synergy

 

Mergers and alliances have been the code words for the relationship between content providers and the companies controlling the means of distribution for the past 15 years. Foremost, the cost of content drives parties together. It is so expensive to fill up a broadcast day with attractive content that unaffiliated players can rarely accomplish the feat. Furthermore, there is a desire to leverage the goodwill that comes from public associations in one market with another. For that matter, trademarks, which brand content or pipelines, provide an important lever in the swing to secure the loyalty of viewers.

Turner and MGM

In the 1980s, borrowing money was easy, whether in the form of direct loans ...

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