Apparently, GM has been underwriting Ken Burns’ documentaries for years. It is no longer doing so.
I supposed the gut response is a big “Duhhhh…” The company is going broke, and can’t afford it, right?
Well, maybe. This seems to me akin to the stupid, stupid demagoguery about corporate jets (from people who ride them themselves at taxpayer expense).
Look, is the company in business, or is it out of business? If it’s in business, it has a CEO with great responsibilities, and only so many hours in a day, and it doesn’t make sense for him to waste time with TSA and sitting in Dallas for layovers (or stupider still, driving from Detroit), despite how bad it appears when he shows up in Washington with his hand out.
And if it’s in business, it is presumably (at least theoretically, even if it looks more like a finance company, pension and health-care provider that just does it on the side) in the business of manufacturing and selling cars. In order to sell cars, one has to market them. One of the traditional ways one does this is by sponsorships, to provide brand recognition.
Now one can argue that perhaps this is an ineffective form of marketing, particularly for a company that has been around as long as General Motors, but one could have argued that during boom times as well. Unless it was purely viewed as philanthropic (in which case they certainly should cut back, since they have no available funds for pure do-goodery), it was presumably previously justified as part of their marketing budget. If it was justified then, why wouldn’t it be now, when marketing is more critical than ever? The problem with marketing, as the old saw on Madison Avenue goes, is that only half of it is effective, but no one knows which half.
My question is, does this mean that, after all these years, some analyst did an analysis and said, “Hey guys, it turns out that the Ken Burns stuff doesn’t sell cars! Sorry I didn’t let you know twenty years ago — I could have saved the company a lot of money.” Or is it just one more sign that the company is bankrupt, but won’t admit it?