News Corp.’s Chernin: Innovate or Face Extinction

CAMBRIDGE, September 14:
Speaking at the Royal Television Society, News Corporation’s president and COO,
Peter Chernin, warned that while there are huge opportunities ahead for
broadcasters who embrace digital services and come up with new ideas, those who
don’t will not survive.

Chernin said that a
fundamental shift has taken place in the media industry that has completely
democratized the business. “Democracy can be scary, especially when you have
been living in a totalitarian state for decades when we were the dictators,”
said Chernin, as reported in the Media Guardian. “The great thing about this democracy is that
it's Darwinian. If you are not innovating and coming up with new ideas, you are
toast.”

In this new consumer-led
world, media companies have ample opportunities to make money despite having to
fight harder for viewers' attention, Chernin explained. And in a world of
infinite choice, viewers faced “infinite confusion” and needed the guidance of “master
brand-builders and packagers.”

“We possess the world's
most recognized and loved brands, and have the opportunity to leverage them in
new ways,” Chernin added. “No one else has that power, no one has nearly as
much experience in packaging content to appeal to consumers. And our content
has never been more coveted.”

According to Chernin, the
fragmentation of the audience is having a positive impact on creativity and
media companies should exploit that. "The middle is dead, and that's the
greatest thing that has ever happened. The bland, safe, central middle is never
coming back," he added.

In the end, people still
want a sense of belonging, Chernin explained, and media companies have always
been able to connect audiences and make them feel part of something bigger.
Fragmentation will not put an end to this, rather, he believes, it gives people
more ways of belonging.