Alan McGlade
Throughout my career I have built businesses that have taken advantage of disruptive industry trends, focusing in particular on the intersection of media and entertainment with new technologies.
My first job was programming for a Los Angeles-based cable multi-system operator in 1981. At the time there was still considerable skepticism about whether or not there was really a reason to offer many television channels beyond the three main broadcast networks and more importantly, whether consumers outside rural areas with limited reception would pay for TV. We all know how that debate ended but this early experience in an emerging industry shaped many of my views about how technology spawned new business models and how inextricably linked the creative community was becoming with the technical innovators.
As I launched one new network after another on our cable systems, it became clear to me that the traditional model for television advertising was under pressure as the audience began to fragment, drawn to targeted programming on channels like ESPN, CNN and MTV.
In 1986, with an initial investment by a group of cable MSO's, I formed Adlink and became it's first president. Adlink's mission was to efficiently reach that audience by interconnecting cable systems and offering advertising agencies a means to place their clients' commercials on multiple networks and cable systems simultaneously. To accomplish this, we developed a proprietary distribution system that fed the appropriate commercials to each cable system and managed playback, reporting and billing. In addition, we fielded the top spot cable advertising sales team in the business. As a result, Adlink became the largest cable advertising interconnect in the country.
In 1991 I became the president of StarNet which was designed to do for cable marketing what Adlink had done for cable advertising. StarNet's infrastructure included a national satellite delivery system tied to smart devices at cable "headends" to display custom marketing messages and commercials for high-profile programs, upcoming pay-per-view events and so on. In addition, we had a portfolio of investments in related enterprises. On of the most interesting was a joint venture with TV Guide. The magazine still had the largest circulation in the country but subscriptions were declining as costs were rising due to the continued proliferation of new cable channels that were making the next-generation TV Guide the size of a small telephone book. Together, StarNet and TV Guide developed the first version of a TV Guide electronic program guide that translated the TV Guide brand, listings and editorial into an on screen display with cable system specific listings. StarNet also invested in an interactive television network called the Video Jukebox Network (VJN).
I joined the Board of VJN and when the CEO departed shortly thereafter, I was appointed acting CEO until a replacement was found. I ended up becoming that replacement and ran the company for over five years. Our audience called VJN, "The Box", so I changed the company's name to The Box Music Network. The Box was a cable music video channel but its unique feature was the ability of the audience to influence the programming by selecting, for a fee, the video that would play next. To compliment transactional revenue, I added a national advertising sales revenue stream (an area I knew something about) and grew the distribution to more than 40 million homes.
We also successfully launched The Box in several territories in Europe and South America. The Box was the first company to digitize a huge music video library, deploy the digital files to cable systems throughout the country as needed and manage unique programming, real-time in hundreds of television markets simultaneously. We were an innovator in Rap and Hip-Hop music programming and were credited with the introduction of many major artists in the nineties. We ultimately sold The Box to MTV Networks, a transaction that worked extremely well for investors, and transitioned it to MTV2.
After a year at MTV Networks, I joined MusicNet in 2001 as the CEO and a member of the Board of Directors. The Company had recently been formed, with three of the major record companies combining as the majority owner, to respond to the sudden explosion in downloading through unauthorized peer-to-peer services such as the original Napster. The labels recognized that they needed to offer a legitimate path for consumers to acquire music online and it was MusicNet's mission to enable digital distribution of music as a service provider for major brands.
It seemed that everything I had done to date was steering me towards this role. The changes in the television business caused by the introduction of cable and interactivity seemed trivial compared to the wholesale restructuring that was taking place in the music industry. And with that restructuring, a strong interdependency had developed between content creation and the sophisticated technical solutions required for an audience to consume it. Finally, it was clear that this was only the tip of the iceberg with all media soon to follow. To learn more about MusicNet and its successor, MediaNet Digital, click here.
Throughout my career I have been a frequent presenter and contributor to major news publications. My commentaries have appeared in Billboard Magazine and Multichannel News, among others, and I have appeared on CNBC, CNN Business and PBS. For press queries please contact Ann Garrett at (818) 501-8499 or direct email to: press@medianetdigital.com.