Usually when a company announces that it is going to cut it’s workforce it’s because sales aren’t so good, its gotten so bloated already and its stock is under performing. I got surprised however with the other reason why MTV was cutting its workforce : Which was to focus more resources on its Internet Properties.
From MTV Networks Chief Executive Judy McGrath Email to it’s workforce:
Our industry is at an inflection point, and many companies are going through the process of adapting their business models and organizations to the new realities.
So what is the new reality? That more people are getting their entertainment and information from the Web than the TV?, that web users spend more than traditional couch potatoes?, or because Net use has already started to cut into TV time?
Definitely what we’re seeing now are the opening moves of traditional media trying make it’s presence ‘more’ felt in the Internet. Viacom, the parent company of MTV, recently demanded YouTube to take down almost 100,000 of it’s video clips for the video streaming sites while at the same time providing code to allow embedding of it’s videos in personal sites.
Telecom companies have warned however that there isn’t enough bandwidth available as of the moment to be able to give near tv quality of streamed videos. So I wouldn’t expect to see the PC replacing the TV just yet. Maybe more like it complementing TV, like what Radio is doing now.
