Thursday, November 9, 2006
Umbrella Corporations & Cross-Marketing
In my Telecommunications 101, 'Living in the Information Age' discussions, we delved into new media economics. We engaged the phenomenon whereby a book that gets plugged on say the 'O'Reilly Factor' is most likely published by Harper Collins. This is because both are owned by Fox News Corporation. The following website, (dated 2002, though still largely relevant), lists the top ten multinational conglomerate media corporations. Cross-marketing has emerged as a primary business strategy to compete against the endemic uncertainty characteristic of the contemporary market--best demonstrated by George Lucas's announcement that he'll no longer be making mega-movies. Consider how Disney's 'Pirates of the Caribbean' is not simply a movie, it is a trilogy of movies, a theme park ride, a video game, (or a slate of video games), a McDonald's tie-in, toys, posters, books, etc. It is a franchise. Would you say that perhaps this is one way of adapting an old business model, (the Pareto Principle), to the emergent marketplace, (characterised by the Long-Tail)?