
Tomorrow on TV World, we're going to be debuting a new Summer feature. I'll leave the details for tomorrow's post, but one element of the new column got me thinking about a controversial topic. Namely, the debate about Internet vs. Television as the primary medium for network programming.
Television networks have been hitting hard recently in the fight to curb illegal file sharing of their shows. Internet Service Providers can essentially be divided into two camps: Those that give out information concerning their customers' downloading habits and those who maintain customer privacy regardless of risk. Those ISP's that provide peer-to-peer activity reports to third parties, such as television networks, naturally tend to lose customers as a result. Those same customers end up giving their business to privacy-respecting ISP's.
Compounding this growing trend toward Internet-as-only-media-outlet is the success of such sites as youtube and Hulu. The latter has had a particularly strong impact on the way people watch their favorite shows. Even those networks initially resistant to Hulu have started to come around, such as ABC. Figuring out why an increasing number of people prefer Hulu over traditional TV isn't exactly rocket science. Let's break down how Web-based programming outlets are superior:
- True On-Demand Access
While traditional set-based television requires viewers to tune in at a particular time to a particular channel, or purchase frivolous digital recording services, Web outlets allow viewers to watch whatever they want when it is most convenient for them. Furthermore, this format eliminates time slot competition between networks. If a viewer doesn't have to choose between two programs at 9:00 PM on a Thursday, he or she is more likely to watch both.
- Low Cost to End User
This is the big one and the main reason why people have turned to file sharing in the first place. With traditional television, viewers not only have to pay for a TV set and often cable service, they also have to watch commercials during most programs. This is essentially paying three times for their entertainment. Compare that to the considerably cheaper Web viewing experience. Whether for work, school or countless other endeavors, most people in TV-watching demographics also have computers with Internet connectivity. Given the chance to access programming through an outlet they already have available without incurring extra costs, that's exactly what they'll do.
- Low Cost to Network
The cost of broadcasting a program via television is astronomical. Between service provider contracts, maintenance of local affiliate stations and various technical bits and pieces (not to mention the occasional censorship citation), TV networks stare down an intimidating series of bills every month. This is why we viewers have to endure upwards of eight to ten minutes of commercials for every half hour of programming. Again, compared to Webcasting it's a no-brainer. The programs can be accessed from anywhere in the world that has Internet service and the only medium-related costs for the network involve the creation and maintenance of a website, plus the purchase of bandwidth. To put that in perspective, some of the most highly-trafficked websites on the Internet today have between $10-20 thousand dollars in bandwidth charges monthly, a drop in the bucket for television networks.
- Growing Demographic
The Internet-savvy demographic is on the rise. More people from more backgrounds are getting connected and essentially each child born into a given network's broadcast territory will grow up connected. It's simply a better business plan to aim for where your customers currently are and will be in the future, not where they used to be or where you want them to be.
One thing is for certain, the Internet and its connection to modern media is not going away. Television and other outlets that can easily be consumed by the Internet will be, as a simple matter of course. The only question now is how long the networks are going to fight this transition, and how much of their own money they plan on wasting in the process.
