************ The best is yet to come! ***************
A read a the letter made me focus on comments regarding strategy, accelerated start-up plans and branding.
While we were told that streaming was the killer invention leading to a faster implementation of strategy, we were also told that .."The period of time to establish an early lead in this area may be short"....and that this fact led to the early investments in AENTV Reiter and TVW.
The strategy is no less than:
"to target relatively small groups of highly interested consumers, to
assemble a large number of such groups and to reach them through web narrowcasting. In this way we can justify an organization to produce, brand and market our collective content on a major scale Finally, and importantly, we foresee an opportunity to use Ampex Data Systems' and MicroNet's image storage expertise to archive all of our material, thereby building a content library that will have long-term value, much as television, film and information libraries do today."
Then we were told that:
" In addition to these strategic investments and acquisitions, we have begun construction of our own Internet video production and distribution center in the Los Angeles area to be followed closely by a similar operation in New York City. These facilities will give Ampex a base for its own set of "channels" yet to be named. These new channels will be complementary to those of AENTV and TV onthe WEB which will develop as independent brands. We have recently hired experienced professionals, based in New York, to head the marketing, programming and advertising sales functions for our own channels and to coordinate with AENTV, TV onthe WEB and other potential affiliates."
The basis of each of these affiliate investment startups was small (as measured by say initial head count) so the cash investment was proportionately small. However, in turn, Ampex gained some valuable cachet, visibility and even some technology transfer benefit.
The real investment could be in Ampex's production and distribution centers initially underway in LA and soon to be "closely followed" in NY - and elsewhere "in this country and overseas." The tip-off here is the hiring of "... experienced professionals, based in New York, to head the marketing, programming and advertising sales functions for our own channels and to coordinate with AENTV, TV onthe WEB and other potential affiliates. The manner and shape of these endeavors is yet to come.
Focused content, in the narrowcasting sense, is stressed in several ways, as a "relatively small group of highly interested consumers", as a physical site where "interesting content is," as a service which provides Ampex's ability to.."produce, brand and market ...[Ampex] collective content on a major scale," and as enhanced by " importantly, we foresee an opportunity to use Ampex Data Systems' and MicroNet's image storage expertise to archive all of our material, thereby building a content library that will have long-term value, much as television, film and information libraries do today.
The vision of Ed Bramson, as I am beginning to understand it, is built on a focused view of Internet based narrowcasting advantages using a combination of site services, media know how, equipment expertise and strategic business targeting. In turn, since there is a focused strategy, expertise is enhanced and may even permit "economies of scale in certain areas" .. ie. show a profit despite being an Internet growth based venture.
Also, since the focus will be pretty intense, Ampex and its affiliates will be in a position to "brand" the full product / service and perhaps even file patents and copyrights on select portions of it.
This has the makings of a formidable competitor. While BSCT may have captured eyeballs with their Victoria's Secret broadcast like streaming, I say so what. They demonstrated that there are a lot off goons out there but I knew that already. However, will these goons then pay up when asked for payment of the service provided? In a word, No.
In conclusion, If one looks at revenue streams and equipment sales, then he misses the point entirely. If one focuses on AENTV and TVW and even on their "impending" IPO's, then he is only seeing the metaphor of what the Ampex is about. Only if one accesses the emerging Ampex "video production and distribution center[s]", their products, services, brand basis and management organization, will one get a view of what the Ampex vision may come to be.
Ed Perry
|
