With respect to MNVs maintaining media outlets on the Web, most VCs that invest in these content companies are quick to admit that there is an enormous amount of risk involved in this segment of the industry.
Ultimately, the challenge for MNVs is to acquire funding from true strategic partners with deep pockets.
Will they strike exclusive content relationships with smaller MNVs to provide specialized content?
Many MNVs provide value-added network/production services, and some charge subscription fees to access premium content.
The challenge for MNVs maintaining Web sites is to convince minority-owned and mainstream advertising agencies that dollars spent on MNV Web sites can add value to the advertiser.
This reiterates the need for MNVs to develop their businesses into a brand--a consumer-oriented media product that increasingly attracts advertisers.
Minority-owned advertising agencies play a key role in the quest for MNVs to attract advertising dollars from blue-chip advertisers with deep pockets.
Given the higher income demographics of the average Web user, many MNVs realize that electronic commerce must be a part of their strategy for making money.
Just as programmers of broadcast television, radio, and cable struggle with what selection of programs and music to offer their viewers and listeners, and editors of newspapers and magazines agonize over what articles to place in their next editions, MNVs are faced with the challenge of what content to offer to users of their Web sites.
Today, the challenge for MNVs is to remain on the cutting edge of Web design and development without sacrificing content and originality.
While MNVs have ideas about broadband, the discoveries about how to make something new out of the mix of audio, video, interactivity, community, and all the other aspects of the Web are still a long way off.
The Web gives MNVs the opportunity to reach an international audience at a huge fraction of what it would cost to do so in traditional media.