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The hosts criticize CBS management for trying to "disrupt" its most successful and profitable show, which is growing while the industry declines. This is a fundamental misunderstanding of disruption theory, which applies to challengers, not incumbents.
Scott Galloway proposes that Netflix could seize the opportunity presented by the turmoil at CBS. By hiring top-tier journalists like Scott Pelley and Anderson Cooper, Netflix could quickly launch a prestigious weekly news program, directly challenging established players like "60 Minutes."
Hollywood's current crisis is self-inflicted, stemming from a decades-long failure to adapt its business models and economics. Instead of innovating to compete with tech-driven services like Netflix, the industry persisted with inefficient structures and is now blaming disruptors for inevitable consumer-driven changes.
Technological and cultural disruption is a recurring cycle, not a unique event. Just as streaming artists displaced MTV and rap overtook rock, today's dominant players will be replaced by the next wave. Resisting new technologies like AI is futile against this natural industry evolution.
Disruption opportunities in sectors like publishing exist not because incumbents are incompetent, but because their existing structures and business models force them to be "backward compatible," preventing true innovation and creating an opening for new players.
As legacy media giants merge and cut costs, they alienate top talent. This creates a prime opportunity for agile competitors, like Netflix or Substack creators, to hire iconic journalists and producers who are now looking for an exit, accelerating the shift of influence away from established brands.
Former BBC CEO Deborah Turness warns that large media brands must learn from the creator economy. She urges them to stop "managing" the news and instead empower talent to build authentic, direct relationships with audiences, mirroring platforms like Substack and YouTube.
QVC failed because it couldn't disrupt its profitable cable business. In contrast, Netflix successfully pivoted to streaming by physically moving its DVD team to a separate building, preventing "old business thinking" from stifling its new, innovative venture.
Malone recognized Netflix was replicating the playbook cable networks used against broadcasters decades earlier: license old content, build an audience, then create originals. He urged the cable industry to buy or compete with Netflix, but they were blinded by their own success.
A consistent pattern shows innovators adopting the models of legacy players they displaced. YouTube creating cable-like bundles, Coinbase mirroring traditional banks, and Facebook becoming new media illustrates a natural lifecycle where disruptors eventually converge with the industries they set out to revolutionize.
Media companies are spinning off declining linear networks to unlock higher multiples for growth assets. However, this strategy ignores significant synergies in carriage negotiations and content sharing between linear and streaming platforms, likely destroying long-term value in the pursuit of short-term financial engineering.