• Home
• Life
• Sunday Life
• Books

For each of the world's many now-faltering media conglomerates, there are thousands of former writers, artists, actors, managers, sales people and other employees, plus countless investors, consultants and fans.

So there's no shortage of backseat drivers nattering like disillusioned lovers as media companies crash. "The Curse of the Mogul: What's Wrong with the World's Leading Media Companies" by Jonathan A. Knee, Bruce C. Greenwald and Ava Seave is a dispassionate critique from Columbia University economist and business professor Greenwald, business instructor and former investment banker Knee and media consultant Seave.

Reviewing the financial and stock-market performance by top media companies - GE/NBC, Disney, Viacom, Time Warner, Vivendi, News Corp. and other conglomerates that produce and distribute information and entertainment - the authors conclude the companies have fallen short of the stock market, "significantly and relentlessly," for more than a decade.

They see a simple cause: decision-making in which efficiency is almost taboo and the fundamentals of economics and accounting are frequently suspended in favor of historic status as first mover or a belief unrelated businesses will suddenly experience "convergence."

"Without drastic action," the authors warn, "There is little reason to think that performance during the next 10 years will be any better."

Despite the book's title and scattered references to the personal failings of several well-known leaders, it's clear many layers of management shared a habit of magical thinking.

The authors find equal problems at news organizations and more entertainment-oriented companies, for modernized businesses and old-guard, for conservative and liberal.

They offer a four-part prescription: efficiency, focus (concentrating on relevant challenges, instead of constantly trying new ventures), collaboration (not ensuring mutual destruction by overspending to disadvantage a rival) and self-awareness (being alert for unanticipated events and consequences).

Media conglomerates must determine their true sources of competitive advantage and forget about ephemera like brands, talent, an owner's deep pockets or how important a product may be, the authors argue. No matter how misty-eyed media people may be about their work, customers aren't so much.

But in a marketplace constantly being reshaped by new technology and its repercussions - where commerce in physical recordings of music has all but evaporated, for example - survival is not guaranteed, even for the unsentimental, the authors argue. And grace ultimately may be assured only by a willingness to admit defeat.

No comments have been posted. Be the first poster!

PressofAtlanticCity.com offers everyone the opportunity to comment on published stories. However, it is impractical for editors to screen all comments.
If you believe a comment is offensive, please click on the abuse-reporting link and your objection will be considered by an editor. We encourage participants to use their real names, but inoffensive screen names are acceptable. Comments are the sole responsibility of the person posting them.
Please post responsibly. Do not post comments that are off topic, defamatory, obscene, abusive, threatening or an invasion of privacy.
Be polite. Don’t hate. Users who don’t play by the rules may be blocked from participating.

View our full terms of service and privacy agreement

Click here to report a comment as abusive.

You must login to post a new comment