THE DEPTHS OF MEDIAOCEAN

The recent news of a meeting of the minds between Donovan Data Systems and Mediabank have more than just a few companies scratching their heads. Where this proposed announcement leaves Harris, Strata, MediaX and others will initially be determined by the antitrust scrutiny of the US government regulatory agencies. Antitrust filings are sure to follow.

Why?

Is this an exit strategy for Michael Donovan? Is this Mediabank's attempt to scale their business? A defense against Google? Or is the proposed marriage a means to a more profitable monopoly?

It very likely holds true that all of the above played a role in the annoucement. It certainly is not about merging technologies. The platforms are unique. DDS carries legacy software that is potentially decades old while Mediabank has been quilting its own newer brand.

And while Google looms in the background there is not a chance in hell that they will accomplish in traditional media what DDS has.

In an ideal world, this merger might create something new and refreshing across all media functions. In our world, we will likely be harping on the same issue into the next decade or two.

CAN DINOSAURS DANCE? DDS VS MEDIABANK

Backroom operations are battling it out. The stakes are high.

Agencies seeking out software systems for the management of an enterprise wide management suite are pitting Donovan Data Systems (DDS) to defend against Mediabank as smaller contenders including Strata and Harris sit it out in the bleachers. All the while, entrepreneurial entries in the form of MediaX begin nipping at all their heels.

Starcom’s move from Donovan to Mediabank likely cost them a small fortune and a major migraine, sparking rumors of a return to Donovan, while driving part of its account to nimble entrepreneurs ala MediaX.

IPG’s Mediabrands is on the fence and about to fall one way or the other as Mediabank pushes for a move to unseat Donovan. Mediabank toppled Donovan when it won the DraftFCB account, jamming its foot in the Mediabrands door.

But eating Donovan’s lunch will not be an easy feat as it represents the majority share of agency business, driving close to $200 million in revenue.

Donovan’s Achilles Heel: It’s the system of choice that everyone loves to hate and a dinosaur that cannot easily innovate.

Mediabank’s underbelly exposes hubris that allows them to believe they have sufficient resources to manage a large win.

Among the underdogs, Harris seems not to have been invited to the party while Strata was simply glossed over.

And …. An honorary mention to the new entries that seem to “get it” and are willing to match their resources to agency visions.

An upset may be close at hand, before year’s end.

THE HOUSE THAT DONOVAN DATA BUILT

Reports are circulating that Donovan Data Systems' (DDS) broadcast business unit, Media Ocean, is in trouble.

It appears thirty (30) employees were pink slipped from the unit.

On the heels of Media Ocean's troubles, Deutsch, an IPG agency, decided to move its agency business from Donovan Data to Harris.

DDS, a pioneer in the agency enterprise software business with the lion's share of the market has, over the years, been admonished for slow or lacking development of its software and the reluctance to support digital initiatives.

Could it be that DDS is conserving cash for an imminent sale of the firm? And if so, who might be courting them?