Monday, October 25, 2010

U.S. TV Networks Backing Cable

The Washington Post published an article today saying that fewer TV shows will be available free over the net. The gist of the article is that the major U.S. TV networks have decided that they can make more money by backing the cable giants than offering advertising supported free content over the web.

I am sure that they are right in the short run. However, these networks no longer control the TV landscape as they did in the past. People are waking up to the fact that they do not have to pay $100 or more per month to the cable and satellite companies for their TV programming. Over the air digital has significantly improved the variety of free content, and the web is providing interesting alternatives such as Netflix streaming.

The quality and variety of these web-based alternatives will only increase in number over time. Netflix is only $10 per month. Other web-based services will emerge that will provide cost-effective alternatives.

The networks should keep this in mind and not give up on web-based delivery so early. In time they will find profitable ways to use web delivery. In fact, having a strong web distribution channel will increase their negotiating power over the cable and satellite companies.

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