Tuesday 28 May 2013

How long will the linear broadcast model remain?




Discussion item........

With the traditional broadcasting methods, of tv shows being aired at scheduled times. Combined with the new generation of viewers digesting content when they want to, how long does the linear broadcasting model have? Will you cut the cord and join the growing trend?

Personally, i believe we will have a hybrid platform of linear and on demand delivery for some years, say 10 to 15. 

With these types of evolution's the technology, content and commercial factors will be the key drivers for viewers and service providers.

Netflix has published a long term view in reference to this topic. Quotes such as 'Over the coming decades and across the world, Internet TV will replace linear TV.' and 'Apps will replace channels, remote controls will disappear, and screens will proliferate.' 

If you want read more find it here http://ir.netflix.com/long-term-view.cfm 

Perhaps we should be looking at the bigger picture !

In discussion with my colleague today we discussed this issue. Current online services in the UK, Apple TV, Netflix, LoveFilm, NOW TV, Sky and Virgin, to name a few, excluding the national UK broadcasters, all offer on demand TV episodes and Movies. However the content is not always what you want it to be. Material which is behind the times, not up to date. Secondly to quote my better half, you spend just as long searching for the content than you do watching it. Almost scavenging for our TV. Do we need to be fed our TV, are we that lazy it is a chore to go and choose something to watch?

Content providers such as Apple TV, Netflix, LoveFilm, NOW TV, Sky and Virgin, I agree, have a very difficult bridge to cross when it comes to revenue. The current model is to provide air time for products aimed at audiences, since the introduction of PVRs most of these commercials are lost to the fast forward key!

The new model, based upon a subscription fee needs to be a fair one. No customer will want to pay over the odds for a service that is perceived to have old out of date content.

In the UK we have a number of free and subscription Digital TV offerings combining traditional delivery tied to a PVR and on demand functionality. These services are provided by, to name a few:

YouView, http://tinyurl.com/8c25qoo 
Freetime from Freesat http://tinyurl.com/c782n6t 
Sky + On Demand http://tinyurl.com/8ockfrb 
Virgin Media tp://tinyurl.com/c69s73v
BT Vision http://tinyurl.com/dy745wp 

The on demand content is fulfilled by the main UK broadcasters, BBC, ITV, Channel 4 and Channel 5. This is a good selection, as it is the same content that aired during the past seven days, in some cases.

All of these content providers, place commercials within the on demand content except the BBC. So the service may be free, but we must sit through the minute or so commercial block, which we cannot skip unlike the PVR.

I was very interested to read Vikas Bajaj's piece in the NY Times over the weekendhttp://tinyurl.com/cgy3jqa on the American market and the current state of "Cutting the Cord", well worth a read.

Speaking at a gathering of digital advertisers in New York City this month, Eric Schmidt refused to forecast when internet video would displace television, instead declaring: "That's already happened." 

"It's not a replacement for something that we know," he added. "It's a new thing that we have to think about, to program, to curate and build new platforms." 

Robert Kyncl, YouTube's global head of content stated, 

"I thought that YouTube was like TV, but it isn't. I was wrong," "TV is one-way. YouTube talks back." 

A year ago, YouTube announced its intention to 'reinvent television' by funding the launch of more than 100 channels from well-known media brands and Hollywood personalities. 

More 18 to 34-year-olds watch YouTube than any cable network in the United States, and the site's popular system of user comments and thumbs up/thumbs down voting on videos has become an industry standard for video sites and newer ventures such as social news site Reddit. 

Source http://www.telegraph.co.uk/technology/google/10033473/Eric-Schmidt-television-is-already-over.html

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