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Supercharging talent yields one of the most valuable sources of competitive advantage: switchover cost.
However, we should carefully grasp the tradeoff of reduction of handover cost and increase of cluster switchover cost.
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A further fly in the ointment for Channel 4 is last week's revelation that the European commission has decided that the UK government's plan to use BBC licence fee money to pay Channel 4's £14m digital switchover costs appears to fall foul of European Union's state aid rules.
Makino is confident that AI Works will be able to win over new customers through demonstrations and by keeping switchover costs low, but concedes that "there is no guarantee of success because this is our first experience marketing in the U.S".
The BBC has ruled itself out of funding digital radio switchover, saying the cost of the project could put at risk stations such as 6 Music.
They're hoping to raise $500K to finance the switchover and expansion costs — purchasing the new robots for franchisees and so on.
Including part of the cost of switchover in the BBC's budget means that the government is funding its industrial policy by means of a regressive tax on licence-fee payers rather than raising income tax.The Treasury may well refuse the BBC's proposal, even though the Department for Culture, Media and Sport is thought to support it in principle.
The BBC said: "If the government proceeds with switchover, this will likely impose cost on some consumers and likely require marketing and communications effort by industry.
Lyons attacked the government over its refusal to ask viewers and listeners if they would like to see licence fee money earmarked to meet the cost of digital switchover returned to them.
The cash would come from the so-called "digital surplus" – BBC money earmarked to meet the cost of digital switchover, not all of which is likely to be used.
It was comprehensively outmanoeuvred by the Treasury in the last licence fee settlement, so that it is now committed to spending nearly £1.5bn on things - the cost of digital switchover, on-demand, building office blocks in Salford - that have nothing much to do with sole purpose of its existence, which is to produce worthwhile programmes.
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