Friday, May 13, 2011

Looking at Internet TV downside up!

So much of what you see, read and I have written about Internet TV has been all about how it is getting closer to the traditional TV experience.  True, more content is making its way onto the Internet.  True, the equipment and software running on Internet TV devices is getting better and cheaper.  True, more devices are building Internet TV capabilities right into the device.   So yea, Internet TV is getting closer to the traditional TV experience and that is a good and necessary thing in order to get mass appeal. 

However, it has occurred to me this is only part of the big picture.  What can Internet TV provide that traditional TV cannot?  One example is that Netflix purchased the exclusive rights to a show that will only be streamed over the Internet.  If you want to watch, “House of Cards” next year, you have to do so with a Netflix account.  I bet you’ve never heard of the show “Pioneer One” have you?  Well, the only way to get it is to download it off the Internet.  It can be done via bittorrent.  Legally and free!  The show operates on a low budget and accepts donations to keep it alive.  So, Internet TV is changing the business model which has traditionally relied on selling content to TV providers and networks who in turn sell advertising.  The TV viewer ultimately pays the price.  Content creators win.  Cable providers win.  TV users lose in never ending rate increases.

Hulu on your computer is free and is ad subsidized.  Yet, the viewing experience is better as there are fewer ads to watch than on traditional TV for any given show.  Also, the ads are becoming more ‘intelligent’ as they are more specific to you the viewer.  Content creators win.  Advertisers win.  TV users win.  Traditional cable providers lose!  Boohoo.

These are only a few examples of how Internet TV can be superior (not inferior) to traditional cable or dish television.  I expect to see more examples of this as things progress.  Ultimately the TV viewer is going to win at the end of the day.  In fact, one day we will all reflect on how our TVs and display devices in the house weren’t even connected to the Internet so long ago.  How did we watch TV without the Internet?  Thanks for reading. 

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