In an effort to acknowledge the Web as an acceptable form of entertainment for consumers and to do their best to keep a strong grip on their business models, the cable and satellite companies have been experimenting in something called TV Everywhere.
The idea behind TV Everywhere is to allow paying subscribers the ability to access content online that also is found on their TVs. Think of it as Hulu, but with everything (including shows from HBO).
Sounds good, right? I mean, most of us pay for cable or satellite now anyway, so we might as well get more out of it (assuming this isn't just a ploy to hike subscriber fees). In fact, according to a recent Business Insider article:
The TV business is only 50% ad supported, with $68 billion coming from advertising. When you tally up TV subscriber fees collected by cable, satellite and telcos, it comes to, well, about $68 billion. And the reality is, between cable, satellite and telecom TV offerings, 90% of Americans pay for their TV.
Translation: There is a lot of money at stake, so let's make sure we do this next phase right.
While I won't comment on the overall cable model in an age of the Web and social media, I recently read an article stating that subscribers will be able to access cable content online from either sites owned by cable/satellite operators (i.e., Fancast.com) or those sites owned by networks (i.e., HBO.com).
And that's the part that got me to write this blog. Limiting access to those sites alone is a huge mistake (for consumers, content owners, and cable providers), and it makes me fear that some traditional media companies care more about the next quarter than they do about their future.
If FB and MySpace have taught us anything, it's that we're in an age where instead of trying to drive consumers to where you are, you need to go where they are. When you know that 100 million-plus people in the US are on social networks, tens of millions use YouTube and other video sites, and millions are on even more advanced platforms like Boxee each and every day, it would seem logical to allow users to access cable content there as well (if those sites comply with what will hopefully be fair and realistic terms and conditions).
I do not believe that people will suddenly flock to Fancast.com or HBO.com in larger numbers than today. The Web is all about discovery, consumption, sharing, and interaction. Boxee does this well. Time Warner Cable, uh, not so much.
What happens if I'm a paying HBO subscriber and I'm watching an episode of HBO's How to Make It in America via TV Everywhere and I publish that into my MySpace or FB stream and a friend sees it?
Would I even be able to do that? What happens if a friend clicks on it and isn't an HBO subscriber? Does he/she just get a "Sorry, you don't pay us enough to watch this" alert? Does he/she have to pay $1.99 a la carte to view it?
In an age when people share everything from what they are watching to where they are eating, being able to share content online is essential for awareness, growth, and usability.
My suggestions to cable/satellite companies:
Allow multiple sites to be authentication partners. Include sites that demonstrate strong entertainment experiences and a loyal/scalable following. Make content accessible via their mobile apps as well (assuming the rights are available).
Don't be completely stingy with the revenues. Pro-rate based on activity at individual destinations. The Web is not something cable companies are going to be able to fully control (and the same can be said for mobile). However, they are in a position to contain it to some degree if they play their cards right.
Fix the cable UI in the living room. All of this is for naught if you don't improve the value consumers get in the living room. Address unusable navigation and discovery tools, inconsistent service, and a whole lot of commercials (that less and less people watch every day).
Keep the sites happy, make consumers happier, and allow revenues to continue to flow into the best business model media's ever seen... which in turn keeps content owners and cable providers happy. I hope the people in charge think this part through carefully.
— Jason Kirk is Vice President of Video and Entertainment at MySpace.
This is a great idea, Terri. Right now, my TV provider (a satellite-based one) allows me to buy a package of channels and top it off with selected a la carte channel offers. For instance, I get CNN, Fox News, ABC, etc. in one news bundle for $10 a month, but I have to pay extra for the Documentary channel.
But what I'd really like to do is, as you say, pay only for documentaries I want to see, or that BBC TV series I love more than the horrible Britcoms I have to take with it.
When TV firms start offering this kind of option, I'll know I'm getting my money's worth. Right now, I'm throwing away a ton of dough on very little actual entertainment.
Yes I think it would be interesting to mix and match the channels or shows that you want to see and pay that way. Like you said, maybe 20 out of 800 channels.
"If FB and MySpace have taught us anything, it's that we're in an age where instead of trying to drive consumers to where you are, you need to go where they are. When you know that 100 million-plus people in the US are on social networks, tens of millions use YouTube and other video sites, and millions are on even more advanced platforms like Boxee each and every day, it would seem logical to allow users to access cable content there as well (if those sites comply with what will hopefully be fair and realistic terms and conditions)."
I absolutely agree with this. Consumers are overloaded with information from every angle already. They don't want to go to another URL and have to remember another login and way to access information. Consumers are already on YouTube, Hulu and other popular sites. Network providers need go there, not make us come to them.
The social networking aspect is also critical. If users can't share and distribute content it won't work.
Agreed. Providers also need to consider a la carte channel options. They try to sell you on how many channels your getting for the money to make it seem like a deal. Honestly, I don't care if I get 800 channels if I only ever watch 20.
I think the companies need to start thinking about a la carte. I may not want to pay for a full HBO subscription, but maybe there is a show, or episode, or original movie, that I would be willing to pay for - whether I initiate it myself or my friend suggests it to me through social network.
cmollerstuen - i think you hit a very important point. seems the rage these days for transparency and access and all, but the great majority of the content on cable is owned by someone other than the cable company.
And I completely agree with your evolutionary comment and outlook -- we are most certainly in a very evolutionary period, with seemingly everything.
Hate to say it but STAY TUNED. Perhaps user content will be the new "community access cable"
How about using digital object identifiers (DOI, http://www.doi.org/) and a new breed of app for our computer, set-top, phone, slate, etc. We configure our content sources and authentication (cable company, userid/password; netflix, id/psswd; Hulu, etc.) and when we click on a DOI link, the content app (manager) scans our content sources for access to that digital object.
That way we could pay for the distribution/aggregation that we want and rely on the "free" providers for the rest...
"cable companies need to make their programming portable around the Internet in order for it to be sucessful"
Part of the challemge here is that cable companies don't own most of "their programming" and are limited by contract how they can distribute that content. If they did want to distribute to web browsers, IP set top boxes or mobile phones they'd have to get different agreements from the content owners (which is challenging today because of the uncertainty in distribution models) and would likely have to pay more for the content (probably raising the cost/price for the service.)
We're in an evolutionary stage here. It's going to be interesting to see how it plays out... content owners, content distributors, content aggregators, advertisers, network operators, consumers, etc.
The ThinkerNet does not reflect the views of TechWeb. The ThinkerNet is an informal means of communication to members and visitors of the Internet Evolution site. Individual authors are chosen by Internet Evolution to blog. Neither Internet Evolution nor TechWeb assume responsibility for comments, claims, or opinions made by authors and ThinkerNet bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.
Recently, the Obama administration has been of two minds where privacy rights are concerned. On one hand, you have an administration that vowed to veto CISPA and mandated open data for government websites. On the other hand, you have an increasingly out-of-control Department of Justice on a fishing expedition at AP and demanding legislation to let the FBI wiretap private, encrypted communications and levy fines if a company fails to comply.
The apartment and house sharing service, Airbnb, now requires members to verify their identities by demonstrating a presence on the web, and by either scanning a government ID or entering detailed personal details. Other enterprises should take a close look at Airbnb's verification policies.
Facebook advertising is a lightning rod. It seems neither brands nor consumers are 100 percent happy about the social media site's policies, placement, or procedures. But the real controversy about Facebook ads and promotions is over whether they work.
By now, you've most likely heard about the 3D-printed gun that Texas-based Defense Distributed demonstrated last week. But we haven't heard the last about the censorship war that began soon afterward.
New York's Metropolitan Transit Authority is conducting a pilot test of digital kiosks to guide subway users to where they want to go more efficiently and at lower cost.
The whole Amazon.reader debate is a double-stupid. It's stupid to think that there's any e-book buyer who doesn't know Amazon's URL, and it was stupider to let ICANN launch the whole free-form TLD initiative to start with.
While NFC's original goal was to enhance mobile commerce applications, it is finding its way into a number of other uses, which is creating both opportunity as well as challenges for IT departments.
Enterprises would like to move to cloud computing but are hesitant because they are concerned about providers’ ability to secure company data. Here are some tips that help to ensure that if breaches occur, the business is not left holding the bag.
Edmunds separates customers into segments based on the info it collects on its site and from partners, and uses that to push out custom content, said Brian Baron, director of business analytics for Edmunds.com, at Predictive Analytics Innovation Summit.
The automotive website uses propensity modeling to target ads and customer registration forms, said Brian Baron, director of business analytics for Edmunds.com, at Predictive Analytics Innovation Summit.
Subsidized handsets, rather than locked handsets, should be the focus of regulators. We're not getting good deals, not fostering innovation, and weakening our power as buyers.
Expert Integrated Systems: Changing the Experience & Economics of IT In this e-book, we take an in-depth look at these expert integrated systems -- what they are, how they work, and how they have the potential to help CIOs achieve dramatic savings while restoring IT's role as business innovator. READ THIS eBOOK
your weekly update of news, analysis, and
opinion from Internet Evolution - FREE! REGISTER HERE
Wanted! Site Moderators Internet Evolution is looking for a handful of readers to help moderate the message boards on our site – as well as engaging in high-IQ conversation with the industry mavens on our thinkerNet blogosphere. The job comes with various perks, bags of kudos, and GIANT bragging rights. Interested?
To save this item to your list of favorite Internet Evolution content so you can find it later in your Profile page, click the "Save It" button next to the item.
Email This
