On his blog, Terry Heaton says he believes that the Internet does change the fundamentals of media, as opposed to Jeremy Allaire, founder and CEO of Brightcove saying it does not in his predictions for 2008.

Heaton mentions that Brightcove is ending its video upload service and abandoning its UGC market. The company says that this decision was based on the growth of their professional video business.

Heaton said that although this may be the right decision for Brightcove, it does not mean that the Internet does not change the fundamentals of media.

He explains his point through this assumption: “Content” is so valuable that people will follow whatever path is required in order to satisfy their eyeballs, including participating in whatever is required to pay for that privilege.

Heaton says that is a dangerous assumption to make because “the “branded destinations” spoken of aren’t unique in the architecture of the Web, and this is a problem.” He explains that on the Web, people will not neccessarily pay for good content because there are thousands of other places they can get it on the Internet for free. He also explains that content is becoming more and more commodified, and therefore just is not regarded as very special anymore, especially on the Web.

Heaton also says, “the assumption requires a belief that this “content” has sufficient qualities to compel the eyeballs in the first place.” He explains that content that has been built on previous success and that has been researched for years does not necessarily mean that it will lead to audience growth. He talks about YouTube being based on a community of viewers that entertain themselves and each other. He says, “Professional video creators can scoff at and discount this all they wish, but eyeballs viewing this are eyeballs that once needed the restraints of those creating value through restricted access and so forth.”

Lastly, Heaton says the assumption is dangerous because it "dismisses the contemporary reality that advertisers — the people who funded the assumption in its earlier times — don’t need the content anymore in order to do business." He explains that in Media 2.0 advertising is content and that advertising companies are creating their own content.

Heaton concludes with some advice saying, “The problem may not be that the value proposition of media is changing as much as the definition of media itself, which is why I believe media companies must proceed down simultaneous strategic paths — monetizing their “content” as best they can but also moving to portfolio companies by innovating in the world of advertising and Media 2.0.”

Source: AR&D Television Branding through Poynter Institute