Tuesday, November 21, 2006
Free TV Here to Stay
The two factors two consider are the perceived value of the programming (aka quality and immediacy) and the potential size of the audience.
Programs such as the Super Bowl will remain ad supported because more revenue can be made from a mass audience then by charging a few dollars for each viewer. If the Super Bowl was on pay per view, a large percentage of the audience wouldn't watch because many currently watch partially for the ads, and frustration over lopsided games would scare away some potential viewers. If the NFL thought it could replace the billions in ad dollars with pay per view they would have done so year ago. People watch it BECAUSE it's semi-interesting and free, the same reasons they watch The Office or 24.
I disagree with Steve Rubel that the networks will start selling subscriptions or shows a la carte. Only a few shows with dedicated fans can charge for "bonus" coverage or old episodes. Remember the rush to sell reruns on iTunes and Google Video? The networks quickly reversed themselves and started broadcasting with commercials.
HBO and the other pay cable stations will continue mostly without ads. The a la carte sales of episodes will be reserved to a niche audience who like the convenience of watching on a mobile device. On demand services through IPTV or cable that incorporate ads will be in the majority.
Posted By Jason Dowdell at 01:34 PM
Permanent Link: Free TV Here to Stay
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