Realize that putting TV shows online will build greater awareness among consumers and increase audiences.
TV networks are growing more confident that they have finally figured out the proper business model needed to succeed in the digital age. Rather than try to sell digital downloads to consumers it will instead focus on streaming episodes for free.
They are embracing streaming video after recent experiments eased concerns that it would cannibalize traditional broadcast audiences and undermine business models. Instead, many TV executives are confident that putting programs online will build greater awareness among consumers and increase audiences. The networks have also been encouraged by advertisers, who are rapidly shifting their budgets to the internet to reach young consumers.
“This is definitely something that’s here to stay,” said Albert Cheng, executive vice-president of digital media at the Disney-ABC Television Group, which last week cited a deal to distribute its top programs via AOL.
Quincy Smith, president of CBS interactive, has even said that “ad-supported streaming is absolutely the future.”
The TV networks’ dominance has been challenged as a proliferation of cable channels and websites have emerged to siphon off viewers. They have also had to contend with technology that allows viewers to time-shift programs and skip adverts.
The networks are hoping that streaming content online for free will increase consumption by allowing viewers to catch episodes they might normally have missed, and thereby lessen the demand for pirated versions of their shows.
Their research also found that consumers are more willing to watch free ad-supported program than they are for having to pay to download them. This only makes sense because if you’re already paying for cable and thus this very content, chances are you won’t be too keen on the idea of paying an additional fee to see stuff you have already technically paid for.
Ultimately people want to watch TV programming on their own terms. They want to be able to watch their favorite shows where and when they please. As more and more households getter faster and higher quality internet connections it will only be a matter of time before we all come to expect on-demand programming from TV broadcasters.
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