Where’s TV Headed?
Posted on May 12th, 2008 by Simon ChenThe first article I read which got me thinking about this post was by John Battelle - here. I loved the words in italics…
If you have a ton of engaged inventory (ie, people using the web in ways that they value), then you can and should figure out a way to provide marketers access to those people for a premium price that will make network TV look like a blip in the history of marketing.
Then there was this article in todays Australian newspaper, with an article on the front page of the business section titled “TV permits no longer a licence to print money”. The article talks about the “the value of commercial TV licences being slashed by $2 billion since 2003-2004.
And then as I was thinking about what to actually write and how to pull it together, I received an email from AdNews - with the lead story “TV revenue on downward slide”.
All the articles point to one thing. The ultimate death of TV.
I know a lot of traditional ad guys who don’t think this will ever happen. I like the fact that they are still clinging to hope. They desperately want to believe that the medium which has helped pay the lease on their BMW, paid for their skiing holiday in Aspen and filled their wife’s lips full of botox will continue to deliver fat profits for eternity.
Except for one thing. The internet has already signed TV’s death warrant. And the sooner the networks figure this out, the better we all will be.
I know one thing. I want to consume and watch the content I want. And so do you. I don’t want to watch the content some 28 year old media programmer and media buyer wants me to watch.
Why has iTunes been so popular? Content on demand thats why. Started with Music. But I bet video content will outstrip it (eventually). I’m happy to pay 99 cents for a song I know I already have on a CD - which is somewhere in the house. Or if my kids have had anything to do with it - probably buried 3 feet in sand somewhere in the back garden.
I’m also happy to pay $40 bucks for a series of NCIS or Boston Legal - which iTunes downloads for me automatically and for which I receive an email notification. Its so simple. And convenient.
I think our lives have shifted to a point where we’ve had a taste of what’s possible via the web - this “on demand” and “eat what you want when you want” thinking. TV doesnt give you that. Never has. Sure, it helped entertain us for years. And because we haven’t worked out a better way - we’ll still be forced to watch major sporting events via TV because of the money involved and the myopic thinking of both advertisers and TV executives alike.
The only TV network who has the web figured out in this country at least is the one you least expect. And the one that amazingly sits in the public domain.
You guessed right. Aunty.
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May 13th, 2008 at 8:02 am
I wrote an email to aunty (Thats the ABC government TV station for international readers) suggesting that they put some more resources behind their podcasts. I love their ‘Good Game’ program which review video games, looks at the history of games and so forth. An Excellent show. http://www.abc.net.au/tv/goodgame/
Why would a non-commercial station care if ad sales are dropping?
If you’re a government station who’s job is to promote the culture of your country, report on news, and create culture than podcasts/ online video has the following benefits
- You know *exactly* how many people are watching, which shows
- You have a pretty damn good idea where those people are
- You are no longer limited to bandwidth - niche programs are OK
- You can reach people on the train, in their downtime = huge value
- You can report news faster than traditional programming allows
- You get much more refined ideas on what people want to see more, or less of
- Surely it must be cheap, compared to traditional licenses?
Obviously the downside is that you’re limiting your audience to broadband only.. but hell, the government should subsidize that anyway in the same way it subsidized roads, Postal system, the telephone system for national economic benefit.
To finish the story, they replied that they don’t have the resources at this time.. but are working on it. What they don’t know is that my TV sits in my corner, gathering dust, unplugged. The ONLY ABC shows I watch are online.
Keith
May 13th, 2008 at 12:47 pm
Keith thanks for the comment. Do you think we Australians would cope with a TV Licence fee? (as they impose in the UK). Essentially, this funds the BBC and I for one would be ok with that. The BBC clearly sets the standard - both online and off. I agree with you on the benefits of podcasts and online video. I also think Aunty has a long way to go online but they still embarrass the likes of Nine, Ten and Seven.