In 1979 the Buggles released their first Album aptly called “The Age of Plastic” which contained the cult hit song “Video Killed the Radio Star”.
This song was a futuristic look back at an industry that was on the brink of collapse. You see Buggles, for all their zaniness, could correctly foresee the future long before most had woken up to the impact that technology was having in both their industry and society as a whole.
Within 2 short years MTV hit our households and profoundly changed the music industry and society – just as the Buggles had foreseen.
Those astute enough to see the changes were able to gain great benefit. Those who fought it lost. And those mothers who needed a social issue to worry about got what they were looking for, arguing and agonizing about the indecent denigration of social values.
MTV was here in all its ripped jeans and big hair glory!
Fast forward some 30 plus years and the same thing is happening. But this time it’s the TV and the Print industries that are facing decimation.
The new technologies are changing society in more ways that we care to notice – smashing old ways and paving a new bright technology filled future.
The news about the struggles of Channel 10 is just the start.
The print and media industries have long been the recipient of an unbroken river of gold thanks to advertising. However, new technology is cramping their style. First it was realestate.com.au (and co) that stole their lucrative real-estate lift out. Now they are being circled by the biggest of all digital monsters.
See Google and Facebook now control 85% of all new digital advertising.
These companies were almost unknown a few years back and yet now are among the 5 largest companies in the world!
Facebook’s revenue has grown from $272M in 2008 to more than $30B last year. And Google from $20B to over $90B – now that’s a lot of clicks!!
The old industries are under siege – in desperation to survive Fairfax has sacked over 2,500 journalists since 2011. At least its still alive. Channel 10 has had to listen to Big Brother say “Channel 10, this is Big Brother. You are broke. Go to the receivers…..”
Just as the Buggles watched the decimation that Video and TV brought to the music industry, we are watching the demise of the old TV and Newspaper industries, replaced by the new consumer driven technology solutions.
But remember the opportunity that this creates. The growth in value of technology stocks. The productivity gains this technology brings to other industries. Remember how the 2000’s Tech Boom was going to destroy the property market? Well, we all now know better, don’t we. The Effortless Advantage guarantees that any such gains will of course be reflected in higher property prices.
Our Economic modelling and history tell us how to use this information to our financial advantage. We know how the cycle will play out – take advantage of this.
I think we can say if “Video Killed the Radio Star then Technology Killed the TV Idol…..”