A major US television network will go bust at some point in the future, because the only thing that is currently preventing it from happening now is sports.
This was just one of the stark predictions from NYU’s clinical professor of marketing Scott Galloway during his keynote address at Cannes Lions 2017 yesterday.
If and when Amazon Prime bids for and wins the rights to broadcast the Super Bowl, the Olympics or the FIFA World Cup, we will witness the absolute free-fall of viewerships on traditional TV networks and someone will go out of business, argues Galloway.
“Sports is the traditional firewall of the TV advertising business because people love sports and they’re willing to sit through the advertising because they want to watch sports broadcast live,” Galloway said.
“This year, Amazon Studios is investing $4.5bn in original content, which is more than the budgets of NBC, ABC and HBO and is only surpassed by Netflix because Netflix added another $2bn to its budget because it could hear Amazon’s footsteps coming up behind. When Amazon decides to bid on live events, which will happen soon, it will change the television broadcast landscape forever. There will be casualties.”
Galloway was discussing the winners and losers of digital in 2017. He concluded that the winners are Amazon, Apple, Google and Facebook and almost everyone else is losing out.
“These four companies have amassed so much power, it is completely unprecedented in the history of our society,” Galloway declared.
“I think that the majority of content providers and brand advertisers should accept that they are in an abusive relationship with Facebook and need to take stock. Agencies snipe at each other, brands compete against each other. When the tanks rolled into Poland at the start of the Second World War, the British, Americans and the Russians figured out a way to get along. Well let me tell you, tanks have rolled in.
“WPP is not the enemy of Havas or Publicis. Your enemies are on the Cannes Lions beach. Every publisher, every content maker and every vendor should look at how the music industry came together to defeat Napster and form a unified front against the companies who will steal your talent and give away your information for free.”