Pay TV subscribers are down. TV Networks are considering more online streaming. Online video viewing is increasing and in some instances preferable to consumers. We asked our Zintro experts on how this industry is changing.
Jerry Bader, a senior partner at an Internet media production company, says that TV and the Internet are like apples and oranges. “Both are fruit, but that doesn’t make them the same thing. Are we going to see more online streaming, most assuredly. Television executives like movie and music executives often copy and repeat last year’s success with ever decreasing results. More importantly, the product of television is not programming but advertising aimed at a captured audience, watching a negotiated selection at a specified time (DVRs being the obvious exception), in a communal environment on a large screen,” explains Bader. “The Internet would, on the surface, seem like an ideal way for television networks to expand, or at least hold on to their audience, a trend that we have already seen and will most likely continue to see. The networks have even expanded the experience by adding interactive Internet games and special features all aimed at enhancing the viewing experience, but the Internet by its very nature is a different animal.”
Bader says the Internet is a more personal, intimate experience, more conducive to watching when you want, what you want, and where you want on smaller personal viewing devices. “The Internet is based on free content, and whereas television viewers have been socialized to accept ads as part of the price they pay for programming, Internet viewers are not, and are more willing to opt out when irritated by ads,” he says. “The constant reruns and milking of programming on TV doesn’t work on the Internet. Unlike television where content is seen as a necessary evil to push ads, the Internet is all about content, and the competition for eyeballs is increasing exponentially. Internet ads for traditional TV programming just get in the way and are easily avoided even if it means watching or doing something else like gaming, reading, or just listening.”
Internet advertisers need to artfully and creatively blur the distinction between advertising and programming by making ads more entertaining rather than mere repetitive high-pitched hucksterism, Bader says.
Marko Rankovic, an expert in e-banking, says that traditional TV is conceding in front of the Internet, as the informational medium of choice. “Internet infrastructure globally is becoming stronger and cheaper every day. Traditional TV companies have two options:
to essentially change their business approach and co-work with the Internet or
not change the approach and risk being another company providing Internet content,” Rankovic says. “Many leading TV companies (CNN, BBC) have joined the Internet arena and offer online streaming via tech-edge receivers. The more proactive TV companies are, the sooner they will find their place.”
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