Space Ramblings

CBS’ Stupid Dot Com Shopping Spree

CBS has snapped up Last.fm for a cool $280 million. Launched in 2002, Last.fm combines Internet radio and music-focused social networking in a package that has attracted over 15 million users in over 200 countries.

Last.fm’s demographic of younger music lovers is an attractive one, says CBS CEO Leslie Moonves. “Their demographics also play perfectly to CBS’ goal to attract younger viewers and listeners across our businesses. Last.fm adds a terrific interactive extension to all of our properties and also is a huge step in CBS Corporation’s overall strategy of expanding our reach online to transition from a content company into an audience company.”

Brilliant Leslie, just brilliant. At a time when your control of audiences is diminishing and content is becoming diverse, you want to become an “audience company.” Great buzzword but let’s actually use our brains for a moment.

CBS’s frenzy of dot com purchases is late to the game at best. News Corp and Viacom had already aggressively dived into this pool. Instead CBS is making senseless purchases that cobble together a portfolio of dot com companies that don’t remotely integrate with their overall properties.

CBS– whose audience skews toward the 60 Minutes age demographic is now aiming for the youth market? Get real. And any dot com company tied to music risks being sued out of existence by the RIAA. Granted CBS represents a pretty sizable lawsuit umbrella but that can no more be counted on than AOL.

If anything CBS needs to pursue content creation and distribution, rather than go on a dot com shopping spree as way too many major media conglomerates have already done. But what do you expect from CBS whose original internet strategy was a search engine that let you win money for using it, namely IWon.com.

Related posts:

Post Navigation

Custom Avatars For Comments
UA-32485431-1
%d bloggers like this: