Startup Addict Musings

As I reported in an earlier acquisition post, CBS continues its’ rampage for new media acquisitions as the network devours sticky media properties. The very audience that has abandoned the network (or never arrived) is being brought back through a wave of web 2.0 partnerships and acquisitions. First it was Wallstrip for $5 million, now it is Last.fm for $280 million, it is being rumored that Last.fm has upwards of 15 million users making that the mere bargain of $18.66 per existing user.

I do have to give credit to CBS. The network joins a minority of traditional media companies that have finally figured out Web 2.0 (beyond the bubble) is a lot like the Burger King motto….”Content your way…right away”. The amount of content that a media entity like CBS (Viacom conglomerate parent) owns is staggering and clearly broadcast (traditional media in general) is on the decline and continues to fragment to an increasing number of media distribution choices, many that do not happen in real time ergo ipod and tivo. Finding new and multiple distribution outlets to monetize the same content just makes sense and is paramount when traditional revenue streams are drying up. I remember from the new media division I launched at Scout in Boston my year 2000 mantra was ( I have always been guilty of adopting too early) “create once and distribute many.” One of these days I actually post some early power point presentations I prepared for angel funding but again I digress.

In fear of a totally supportive post, one bone of contention to mention for the CBS acquisition of Last.fm is the uncertainty it possesses with the recent Internet royalty ruling (debacle rather). The Copyright Royalty Board (CRB), created by Congress to settle royalty disputes in the music business, implemented a per channel and music fee structure that will cripple Internet radio in the United States. This ultimately may not be a big deal for CBS because the pockets run deep and the sum of the parts are greater than the whole…but it will sting the profit a bit and small radio stations (free choice in general) will be eliminated. My right-wing bleeds out a bit when politics interfer with private enterprise. In the meantime, let’s keep our eye on the ball or at least CBS.