Will internet take over cable TV the way it took over the newspaper industry? If yes, when and how? Can the networks stop the takeover? These are questions that seem to have occupied the minds of cable network executives.
I have been reading reports about cable networks trying to figure out a way to deal with putting shows on the web. New York Times recently carried reports that follow the cable executives as they put two and two together to build a model for online tv.
What makes internet unique from any other media outlet is the fact that there is never one source to get something. This applies to getting videos too. You can go to YouTube and get almost any show you want. Or you can go to other sites that stream tv shows much to the disappointment of the cable networks. When cable shows are spread across websites that stream them without have the rights to do so, it becomes important for cable networks to do take reins in their hand before it gets too late.
The cable executives fear that if they start to put their shows free on the web, their customers will eventually cancel their subscriptions. This is precisely what affected the newspaper industry. And we all know offering free on the web is not going to be a profitable way to do a business.
The question now for cable execs is how to provide shows on the web and at the same time maintain their cable subscriptions. Recently, Jeffrey L. Bewkes the chairman of Time Warner advocated the idea to offer cable shows online for no extra cost, provided a viewer is an authenticated cable or satellite subscriber. In fact, Time Warner has put this idea into testing a subscriber based online tv model with HBO. HBO subscribers can watch some of its shows such as “Big Love” and “Entourage” on their computers, using special software and a personal log-in.
I think this model is good for now (for those who continue to have and renew their subscriptions) but can’t be the long time solution. The execs seem to forget that increasingly more and more people prefer to view videos online. Younger generations spend more time watching videos on the web than TV. In fact some don’t have a cable subscription. For this increasing class of people who either don’t have a cable subscription or don’t want to renew, the model is a failure. Just because I don’t have a HBO subscription doesn’t mean I don’t want to watch HBO shows. I want to watch them online at my leisure. I just don’t want to have a tv subscription. Time Warner’s model leaves people like me behind. The need is to have a model that can work for people like me- the class without the subscriptions.
I am thinking of pay per shows or package deals which bundle few cable stations for X number of days. Let the online viewer pick up the shows he/she wants to pay for. I am sure people will pay because everyone pays for quality in the end. And in the end, it’s the cable networks that will profit, right!
