Tuesday, November 6, 2007

A New Business Model for Watching TV

For some reason the media industry is always resistant to change. When radio stations began broadcasting music the industry feared people would no longer go to concerts. When VCRs and video tapes were released the movie industry thought that it would kill the movie theater business and ruin the industry. When music became digitalized and people were sharing their music with their long distance neighbors the recording industry thought that soon, no one would purchase music. But their fears were unfounded. Radio brought music to everyone, VCRs made classics out of blockbusters and paved a new road for revenue and digitalized music opened new paths for distribution and helped the new and independent artists find a presence.

Now there is new change. Media is continuing to digitize and people are turning to the internet to watch their favorite TV shows. Initially people began to share TV shows that had been downloaded, commercial free and crystal clear. TV studios feared lost revenue. But this change, like the previous, is here to stay. The TV industry simply needs to find their business model. Already we are seeing networks trying to build this new model. Everyone needs to follow suit and embrace this channel. Instead of driving people to download commercial free versions of their TV shows offer them an easy and high quality avenue. A place with ads that you can not skip, and perhaps even require you to click to acknowledge. Networks, the digital revolution is not going away. Embrace it and mold it in to the model that works for all of us. Otherwise you will simply be blowing off a lot of hot air and not making any money from it.

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