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
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
04/07/2026
April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
29/05/2026
With InfoComm 2026 just weeks away, NDI is giving attendees plenty of reasons to...
29/05/2026
Reaffirming a partnership that has defined Canadian sports broadcasting since 19...
29/05/2026
Mobile/tablet is No. 2 device for watching TV, suggesting that the sports-production industry needs to take another look at the format
Ring Digital's Sprin...
29/05/2026
Berliner Ensemble, one of Berlin's five major theater companies, has expande...
29/05/2026
Solid State Logic will showcase its new compact, fly-away TCA Tour audio product...
29/05/2026
Gerald (Jerry) Pierce, a pioneering technologist who helped shape the digital transformation of the motion picture industry, passed away last month on April 12 ...
29/05/2026
Paramount+ will be the English-language U.S. home for Barclays Women's Super...
29/05/2026
Further strengthening its virtualisation strategy to fully support broadcasters ...
29/05/2026
Swiss broadcaster Canal Alpha has deployed Harmonic's award-winning, software-based XOS Advanced Media Processor to modernize playout operations across cant...
29/05/2026
PTZOptics will showcase a new generation of intelligent video workflows at InfoComm 2026, June 17-19, Las Vegas. Visitors to booth N8227 will see how PTZOptics ...
29/05/2026
Arizona's Family has launched the Arizona's Family Sports (AZFS) streaming app, a new direct-to-consumer destination for live, local sports. The app is ...
29/05/2026
Starting in 2027, DAZN will be the exclusive home of The Canadian Football Leagu...
29/05/2026
Comcast Business has detailed the advanced network infrastructure it has deploye...
29/05/2026
In two-day event, leaders from academia and industry explored solutions to chall...
29/05/2026
The Basketball Tournament (TBT), now entering their 13th year of competition, ha...
29/05/2026
Roku has launched FOX One as a Premium Subscription on The Roku Channel in the U.S. Roku customers can now subscribe to FOX One using their Roku account for liv...
29/05/2026
In its sixth year, the broadcaster's coverage has become a global brand and ...
29/05/2026
Ratings Roundup is a rundown of recent ratings news and is derived from press re...
29/05/2026
The days are getting longer, the temperatures are rising, and playlists are filling up for the season. With summer around the corner, Spotify's global edito...
29/05/2026
New retro-inspired MPC announced
There are few devices that have gained the status held by Akai Pro's MPC range, and in recent years, the company have s...
29/05/2026
Save up to 30 on acclaimed titles
Following a successful launch at Superbooth 2026, Bjooks have revealed that they will be continuing the Kickstarter campa...
29/05/2026
Binaural monitoring application improved
Genelec have just released an update that brings some powerful new features to their HRTF-based binaural headphone ...
29/05/2026
6 June 2026 at SAE Institute, London, UK
IMSTA FESTA 2026 is almost upon us, with some of the biggest names in pro-audio set to descend upon SAE Institute i...
29/05/2026
Gerald (Jerry) Pierce, a pioneering technologist who helped shape the digital transformation of the motion picture industry, died April 12, 2026, at his home in...
29/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/05/2026
Comparing 5 AI Video Enhancers for Restoring Old Video Quality
Kate Luvis May 29, 2026
0 Comments
Digitizing VHS, MiniDV, and other legacy formats doe...
29/05/2026
Studio Hamburg Builds New Post Pipeline with DaVinci Resolve Studio
Brie Clayton May 29, 2026
0 Comments
Workflow replaces a patchwork of legacy tools...
29/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/05/2026
At the Intersection of Music and Dance, an Epic Collaboration Boston Conservatory musicians and dancers found creative parallels in their recent performance o...
29/05/2026
Something fundamental has shifted in how people consume media. Audiences aren't abandoning television or radio content; they're just expanding how, wher...
29/05/2026
Youtube exclusive special drops today
Watch now
UKTV today announces another e...
29/05/2026
Back to All News
The Official Trailer of Physical 100 Italy, on Netflix From Se...
29/05/2026
At just 20 years old, Sean Melia from Summerhill Co. Meath has been revealed as the winner of Super Garden 2026. Sean is the youngest ever contestant and winner...
29/05/2026
Experimental HIV vaccine achieves a long-sought goal In a first for the field, all non-human primates given a new series of vaccines generated antibodies capabl...
28/05/2026
Thomsons Climate Crisis Toolkit is already being put to work, helping journalist...
28/05/2026
FOX Sports' MLB coverage dominated the night at the 47th Annual Sports Emmy ...
28/05/2026
One of the most memorable postseasons in baseball history would have had no memo...
28/05/2026
NBC's Sunday Night Football is among the most-decorated and most-watched pro...
28/05/2026
The 2026 Sports Emmys marked a watershed moment for Prime Video Sports. After bu...
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. 
