This video features an interview with Gordon Borrell, CEO of Borrell Associates, discussing the “death” of old media and the necessity for local news organizations to innovate and adapt to disruptive technology.
Gordon, CEO of Borrell Associates, digs into media’s outdated economic models and lack of R&D investment, missed opportunities in storytelling for local businesses, why AI is the next big media disruptor, and how local news can rediscover its purpose by engaging with its community on its own terms.
The Current Crisis in Media
- A History of Disruption: Gordon founded Borrell Associates in 2001 to help media companies understand “disruptive innovation,” a term coined by Clay Christensen.
- Loss of Trust and Relevance: Borrell argues that much of “old media” is failing because it has lost touch with the American people and suffered an erosion of trust over decades.
- The R&D Gap: A major concern highlighted is that while tech giants like Google and Meta invest 14%–27% of their revenue back into Research and Development, most traditional media companies report 0% R&D expenditure.
Strategies for Survival
- Redefining the Model: Success requires moving beyond the traditional “printing press” mindset. Media should be seen as a business that informs and entertains, supported by a mix of subscribers, advertisers, and potentially philanthropy.
- Writing Like People Talk: Borrell emphasizes that newsrooms need to reconnect with their communities by focusing on local stories that matter to people, such as the achievements of local scouts or neighborhood safety, rather than just high-level political posturing.
- Empowering Local Entrepreneurs: Instead of just selling banner ads, media companies should help local businesses tell their stories through high-quality video and digital content, essentially acting as a marketing partner.
The Role of AI and Future Predictions
- The AI Bubble: Borrell compares the current AI hype to the 1995–2000 internet era. He predicts an “AI bubble burst” around 2026, followed by a period where the most effective uses of the technology will finally take hold.
- A “B-Positive” Outlook: Despite the challenges, Borrell encourages media professionals to remain positive. He suggests that those who embrace change when “the pain of not changing exceeds the pain of having to change” will be the ones to thrive.
Video Link: Old media is dying. Now what?
