
The sunk cost fallacy is when we continue to do something because of our past decisions (time or money spent) rather than making a rational choice to change things up that could lead to maximising value or bringing greater efficiency.
The sunk cost effect is manifested in a greater tendency to continue an endeavour once an investment in money, effort, or time has been made.
Hal Arkes and Catherine Blumer (1985), The Psychology of Sunk Costs. Organisational Behaviour and Human Decision Processes, 35, 124-140.
Some examples of a sunk cost fallacy:
Sticking to a commercial strategy because it worked in the 80s even though revenues continued to decline
Eat all the food because I paid for it (even though I am full and feel a bit sick)
I am camping in a storm because I paid for the site and the car is packed
Trying to make legacy technology fit the demands of the modern media consumer
In the M&E space, the sunk cost fallacy can mostly be seen in the reticence to move away from LTO in fast turnaround archive workflows. The most prevalent instances of this fallacy can be seen in investments made in some of the larger format removable storage platforms such as LTO-7 and LTO-8, where it is felt that moving away from them would be too great a financial burden.
It must be said that the pandemic has accelerated the move away from LTO in sports and news workflows, but there are still a good number of organisations that we talk with that say:
I only bought the library 3 years ago, so come back in 2 years' time
I've used LTO all my career and won't be changing now
It's all paid for now, so I won't get any new budget
We just planned a migration from LTO 6 to 8, so the timing is not ideal
All of these statements are classic sunk cost thinking and totally preclude the possibility of implementing something new and more modern that can bring many benefits to media organisations.
In fact, if you are planning an LTO migration project, then the timing could not be more perfect to investigate, procure, and implement an object storage-based hybrid cloud archive platform.
Hybrid cloud platforms bring operational efficiencies and the ability to generate revenue from your archive. The cost of implementing this new technology will be paid back quickly and handsomely as editors, producers, and commercial partners will be able to self-serve access to archive content from wherever they are.
What makes hybrid cloud platforms so compelling is that they can be scaled up or down very easily and quickly to match the activity levels of a particular operation without requiring an expensive upgrade project.
So don't fall victim to sunk cost thinking explore the new and all the benefits that it can bring!
Want to find out more about hybrid?
Most recent headlines
06/10/2025
France T l visions, France's leading broadcaster, has received the 2025 EBU ...
04/09/2025
Monumental Sports & Entertainment (MSE), in collaboration with Dalet, has been a...
04/07/2025
By Lucy Spicer
Editor's note: We are deeply saddened by the passing of Robe...
04/07/2025
The Summer Reading Challenge has inspired children across the U.K. to embrace a ...
04/07/2025
Introducing CVP Auctions: Trusted Tech, At Auction-Only Prices
Brie Clayton July 4, 2025
0 Comments
A New Destination for Film and Broadcast Gear at U...
04/07/2025
Unveiling China's Ecological Wonders with URSA Mini Pro 12K
Brie Clayton July 4, 2025
0 Comments
Nature Documentaries Freeze Epic Momentsin Extrem...
04/07/2025
Create Any Planet in After Effects
Graham Quince July 4, 2025
0 Comments
The Advanced 3D renderer in After Effects makes it really easy to import 3D o...
04/07/2025
Custom Gradient Colorize for Resolve Fusion
Simon Ubsdell July 4, 2025
0 Comments
Digging into the theory of the gradient colorize process to build ou...
04/07/2025
Watching live sports on TV these days is a delicate balance for broadcasters how much information is too much?...
04/07/2025
WASHINGTON As Federal Communications Commission Chair Brendan Carr works to achieve his goal of a very busy, productive summer at the FCC, the agency has rele...
04/07/2025
Other World Computing Launches OWC Guardian USB-C Hardware-Encrypted Portable SS...
04/07/2025
CANAL Brings MotoGP to Vision Pro with Blackmagic URSA Cine Immersive
Brie Clayton July 3, 2025
0 Comments
Experience MotoGP like never before as CA...
04/07/2025
Friday 4 July 2025
Watch the trailer here https://youtu.be/Od5WpvWmDr8
Further...
04/07/2025
The Pitch comes to RT Radio 1 airwaves this Sunday at 7pm. The Pitch is a brand...
03/07/2025
For our Vario-Jib, as well as for a repertoire of weights, we now have carts that make transport easier...
03/07/2025
One of our latest innovations: Slider Drive Unit!
Our Vario Slider not only comes with improvements and new features, but also with its own drive unit!
Our i...
03/07/2025
The 360 EVO lives up to its name: 360-degree rotation not only on the pan axis, but also on the roll axis, enables filmmakers to take their creative visions eve...
03/07/2025
What a buzzing few days at BSCExpo in London!
We were thrilled to connect with so many talented professionals from the world of cinematography.
A huge thank ...
03/07/2025
ADOLESCENCE - Shot with Panther Tower"The whole rig had to be detachable mid-episode
Netflix limited drama series Adolescence has been gaining attentio...
03/07/2025
To achieve a true level of decisive overmatch, communication systems must be as ...
03/07/2025
The Broadcasters Foundation of America has named Ray Hopkins, president of U.S. distribution at Paramount Global, to its board of directors....
03/07/2025
SIOUX FALLS, S.D. In his first major policy speech, Federal Communications Commission chair Brendan Carr outlined his Build America Agenda for the agency'...
03/07/2025
As the industry is making a major push to transition to NextGen TV and develop new businesses that will fund the next generation of broadcasting, TV Tech's ...
03/07/2025
Despite enabling its subscribers to watch films and TV shows in the highest possible resolution, Netflix has revealed it is taking things old school with the in...
03/07/2025
WASHINGTON In response to news that Paramount Global has agreed to pay $16 million to settle a lawsuit by President Donald Trump, Democrats and other administra...
03/07/2025
WUPPERTAL, Germany Riedel Communications today launched RefSuite for professional sports workflows....
03/07/2025
WEITERSTADT, Germany LYNX Technik, a provider of modular signal processing solutions, has announced that founder and longtime CEO Winfried Deckelmann is steppin...
03/07/2025
WASHINGTON Representatives from six trade groups representing tech, pay TV, broadband, LPTV and other sectors recently met with Federal Communications Commissio...
03/07/2025
PLYMOUTH, Wis. Dan Whealy has acquired Heartland Video Systems and will be its new owner and president, the systems integrator said....
03/07/2025
Acclaimed filmmaker, educator, and industry veteran Jay Holben has released his most ambitious work to date: The Director's Guide to Everything a sweeping...
03/07/2025
For Los Angeles-based photographer Scout Pruski, documenting the annual Dyke Day LA is a way to honor and give back to the city's legacy queer community and...
03/07/2025
Modular, Travel-Ready Solution Matthews Studio Equipment launches the new Chimera V-Flat Panel Frame Kit, the lightweight and modular, ultra-durable alternativ...
03/07/2025
Dalet, a leading technology and service provider for media-rich organizations, today announced the release of Dalet Flex 2025.6 LTS (long-term support), introdu...
03/07/2025
Lightware's LARA Wizard makes it quicker and easier than ever to set up audio-visual (AV) room automation and control configurations, ensuring anyone, from ...
03/07/2025
Alfalite, the only European manufacturer of LED screens, has obtained both the NCAGE Code (NATO Commercial and Government Entity) and TAA (Trade Agreements Act)...
03/07/2025
nxtedition is implementing a new solution for WIN Network, based in its headquarters in Wollongong, New South Wales, Australia. The nxtedition integrated platfo...
03/07/2025
ORS Group and Insys Video Technologies today announce the launch of a new joint brand identity: Big Blue Marble. The move reflects the evolution of a long-stand...
03/07/2025
Evergent, a global leader in customer lifecycle management and monetization solutions for subscription-based businesses, today announced the successful results ...
03/07/2025
LYNX Technik, provider of modular signal processing solutions today announces an executive leadership transition, effective July 1, 2025. Markus Motzko has been...
03/07/2025
Chaos Releases V-Ray for Blender
Brie Clayton July 2, 2025
0 Comments
Production-Proven Renderer V-Ray Arrives Natively in Blender for the First Time;...
03/07/2025
Calvin University Adds Blackmagic Replay to Broadcasts and Streams
Brie Clayton July 2, 2025
0 Comments
Replay workflow joins 14 Blackmagic Design cam...
03/07/2025
Berklee's Gospel Performance Program Welcomes Jonathan Nelson as the Herb Al...
03/07/2025
Back to All News
Get Ready for Even More Action! Netflix Has Confirmed the Thir...
03/07/2025
Back to All News
Get ready for even more action! Netflix has confirmed the thir...
03/07/2025
In today's fragmented media landscape, advertisers expect more than just reach - they want seamless cross-platform campaigns that deliver measurable results...
03/07/2025
** MEDIA ALERT ** Shonen Jump Store Hosting Los Angeles Pop-up During Anime Exp...
03/07/2025
Thursday 3 July 2025
David Harewood and Matthew Broome in Mozart: Genius for Hi...
03/07/2025
The Sky WNT Fund supports Womens National Team players with a 30,000 bursaryThursday 3 July 2025
Sky Ireland has announced the four recipients of the 2025 Sky...
03/07/2025
The forecast this month is showing a 100% chance of epic gaming. Catch the scorching lineup of 20 titles coming to the cloud, which gamers can play whether indo...
02/07/2025
Hege Wik and Odin appear in FOLKTALES by Heidi Ewing and Rachel Grady, an official selection of the 2025 Sundance Film Festival. Courtesy of Sundance Institut...