Radio broadcasters want Congress to require automakers to keep AM radio in new cars. Television broadcasters want the federal government to loosen ownership restrictions so they can consolidate. Hollywood wants Congress to create federal tax incentives to encourage film and television production in the United States.
On the surface, these look like three different policy debates. But they have something important in common:
Legacy content businesses are turning to public policy to help them adapt as their Content Revenue models come under increasing pressure.
Protect the Distribution
The AM Radio for Every Vehicle Act would require automakers to include AM radio in new vehicles at no additional charge. Broadcasters make a legitimate public-interest case for the legislation: AM radio plays an important role in emergency communications and provides information to communities across the country.
The legislation would also have an important business effect. If automakers stop putting AM radios in cars, broadcasters lose access to one of their most important distribution channels. Requiring AM radio in new vehicles would prevent that from happening.
Increase the Scale
Television broadcasters have been pushing to eliminate the federal government's national ownership cap, which has historically limited how much of the country a single station group can reach.
Their argument is that the media landscape has changed. Local television stations are now competing against enormous digital platforms without the same ownership restrictions. Broadcasters argue that eliminating the cap isn't government assistance; it's removing an outdated government restriction that puts them at a competitive disadvantage.
Their proposed solution is to allow broadcasters to get bigger. Greater scale could help station groups reduce costs, increase their negotiating leverage, and compete more effectively for advertising dollars.
In other words, when the economics of the existing model get harder, increase the scale of the Content Revenue machine.
Subsidize the Production
Meanwhile, Hollywood is pushing for federal tax incentives to encourage more film and television production in the United States. There's a legitimate economic argument for doing this: other countries and states use tax incentives to attract productions, making it more difficult for the United States to compete for those jobs and investments.
The proposed solution is government assistance that makes domestic production more economically competitive.
Protect the distribution. Increase the scale. Subsidize the production.
These aren't all the same type of government action. The AM bill would impose a requirement on automakers. Broadcasters argue that eliminating the television ownership cap would do the opposite by removing an outdated government restriction. A federal production tax credit would use government incentives to make domestic production more competitive.
But they all point to the pressures facing businesses built around producing, distributing, and monetizing content.
What happens when Content Revenue gets harder?
Content Revenue is a business model that creates value through content. You produce something people want to watch, listen to, read, or experience, then monetize the attention it attracts through advertising, sponsorships, subscriptions, ticket sales, purchases, licensing, or other revenue streams.
For decades, this model powered enormous media businesses. Then technology dramatically lowered the barrier to entry into the content business.
Today, anyone can launch a podcast, publish a newsletter, start a YouTube channel, stream video, or reach millions of people through social media. The result is more content competing for people's attention than ever before, putting enormous stress on the Content Revenue business models that legacy media companies were built on.
The NAB acknowledges this shift directly. Writing about broadcast ownership rules, NAB President and CEO Curtis LeGeyt said:
“The communications marketplace has changed dramatically over the past two decades.”
He's right. Streaming platforms, social media, and other digital competitors are now competing with broadcasters for the same audiences and advertising dollars.
But changing the rules to help legacy media compete doesn't change the underlying revenue model.
Keeping AM radios in cars doesn't change the fact that radio depends on content for its value. Allowing television companies to consolidate doesn't change the fact that television depends on content for its value. Giving Hollywood a tax incentive doesn't change the fact that studios depend on content for their value.
In every case, the business still depends on producing content, attracting attention, and monetizing that attention. And that revenue model is simply more fragile than it used to be.
The barrier to entry isn't going back up. The amount of content competing for attention isn't going back down. And the old advantages that allowed legacy media companies to dominate that attention aren't coming back.
These policy changes may make legacy media businesses more competitive. But they don't solve the underlying problem: Content Revenue is a weakening business model.
You face the same problem
You probably aren't lobbying Congress. But if your business depends on content to create value, you're dealing with the same underlying problem.
More people can create and distribute content than ever before, which means more competition for the finite amount of attention available. When revenue gets harder, the natural response is to find another way to make Content Revenue work: create more content, reach more people, add another platform, improve your distribution, find another sponsor, or launch another subscription.
Sometimes those are exactly the right things to do. But you can keep looking for ways to make Content Revenue work better and build a business that isn't entirely dependent on it.
That's where Community Revenue comes in. Instead of creating all of the value yourself through content, you bring the people you already reach together so they can create value for each other — through relationships, knowledge, support, access, collaboration, or shared experiences.
You don't have to abandon Content Revenue. But you don't have to bet your entire business on it, either.
Legacy media companies are looking for ways to make their Content Revenue models less fragile. You have another option: build another revenue model alongside it.
In the free Beyond Content Workshop, we'll look at the audience and assets you already have and find your strongest opportunity to create Community Revenue.
Let's Find Your Community Revenue Opportunity
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