BrandistheMediaThebroaderthemediaandlesstargeteditsmarket,thelessbrandequity,profitabilityandpowerresidesinthemedia,whilethegreaterprofitabilityandpowerresidesinthecontentofthemedia.Conversely,thenarrowerthemediafocusandmoretargeted,thegreaterpowerresideswithinthemediaandthelesspowerinitscontent.Ineffect,thebrandinmassmediaiscontentwhilethebrandinnichemediaisthemediaitself.Thispointisunderlinedbythearticle"StrategyandtheNewEconomicsofInformation"fromtheSeptember-October1997HarvardBusinessReviewbyBCGconsultantsPhilipEvansandThomasWurster.Anexamplefromtelevisionnetworksandcablechannelsisprovidedbytheauthors.Televisionviewers,theynote,seemtoflocktothehitshowswithoutcaringwhichnetworktheseshowsareon.However,audiencesselectspecialtyprogrammingsuchasnaturedocumentariesormusicvideosbytuningtoaspecificcablechannelofferingthisformat.(Canyounamethenetworkyourfavoriteshowhasbeenon?Or,thetopproducernaturefilmsonTheDiscoveryChannel?)Differentpatternsofcompetitiveadvantageandprofitaresuggestedbytheabovetwosituations.Networksneedhitshowsmorethanhitshowsneedanyparticularnetwork.Inthissense,theproducersofcontenthavethepowerandreceivethehigherreturnontheirinvestment.Ontheotherhand,producersofthelow-budgetnaturedocumentariesneedadistributormorethanthedistributorneedsanyparticularprogram.Here,theprofit/powerpatternisthereversewiththemediaholdingthepower.AsEvansandWursternote,inoneyearBillCosbyearnedmorethantheentireCBSnetwork.And,theDiscoveryChannelmostlikelyearnsmorethanallofitscontentprovidersputtogether.Thepowerdominancefinallyplaysitselfoutinprofits.DespitethefactthatCBS's1996revenueswereaboutsixtimesthoseoftheDiscoveryChannel,Discovery's52%profitmargindwarfedCBS's4%.Theauthorsconcludethat"Theeconomicsplayingoutinthetelevisionindustryareamodelforwhatwilllikelyemergeintheworldofuniversalconnectivity.Thinkofitastwodifferentvaluepropositions:oneisafocusonpopularcontent;theother,afocusonnavigation."ThebattleplayedoutbetweennetworkTVandcableisalsofindingitscounterpartontheinternetwithanincreasingdivisionbetweentwomajortypesofsites:contentprovidersandnavigational"engines"or"portholes."Ineffect,thebigcontentprovidersarethetelevisionnetworksoftheinternetwhilethenavigationalsitesarethenet'scablechannels.Theformerisa"place"arrivedatwhilethelatterisa"road"toaplace.1***Brandequityisgreaterwhentherearegreatercoststoswitchingandlowerwhentherearelowercoststoswitching.Forexample,ER'saudiencehaveminimalswitchingcostsfromchangingthechannelonenetwork(brand)tothenext.(Assumingthesametimeslot).SeeingERonABC,CBSorNBChaslittleimportanceandthereforethesebrandslittlebrandequity.Conversely,switchingfromwatchingaliondevouringazebraonTheDiscoveryChanneltoMadonnadancingaroundinmetalunderwearonMTVhasgreatswitchingcostsassociatedwithit.Thebrandchallengeisabouttoplayinthenewmediumoftheinternet.Manyquestionsareposed.OneisthatperhapsanentiresiteshouldbelookedatlikeaTVnetworkwithparticularwebpagesinsidethesitesimilartocablenichemedia.Inthissense,onemightsaythatwhenentiresitesare"bookmarked"mediacontextisbeingchosen.Ontheotherhand,whenindividualpages(awayfromhomepage)arebookmarkedonecansaythatcontentisbeingchosen.Willbrandequityresideinthecontextoftheentiresiteorinthecontentofthesite'sindividualpages?Thiswillbeoneofthekeyareasthatbranddynamicsandsymbolismplaythemselvesoutovertheinternetduringthenextfewyears.LoyaltyandBra...
