09/24/2009 05:12 am ET Updated May 25, 2011

New Media Companies Confront Failure While Traditional TV Network Model Proves Sustainable

Northeast Harbor, Maine: Although these are the dog days of August, the weather here in Maine's Acadia National Park is unseasonably warm. As I sit here overlooking spectacular Northeast Harbor, crowded with yachts, wooden-masted sailboats, lobster boats, sloops and dinghies, I am impressed by the generational consistency and continuity that has maintained the dignity of this summer home of some of America's legendary families since the early 20th century. But as an economist schooled in the dynamics of change, I cannot help but also recognize the transformation here -- symbolized by the apparently empty home of the late Brooke Astor, whose estate is now at the center of a drawn out legal battle. There is a clash of cultures, traditions and generations here that parallels, in many ways, the clashes that are quietly reorienting the media world. The key take-away message is not one of change overtaking tradition, however. In fact, it is just the opposite. Today's report focuses on the resilience of traditional media empires and the self-destructive patterns of new media that are holding back progress, development and economic growth.

Jack Myers consults with media, agencies and marketers on transformative business models and revenue growth strategies. He can be contacted at

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