Internet TV is finally happening!
Check out this Rueters post (link) about Cable providers in talks with the cable networks to broadcast all cable content over the net. We all see this bus coming — the Internet will be available on your TV and TV content will be available over the Internet (on your TV or Computer). The show down will be between the content providers and the content distributors. This Rueters article is showing us that the Cable distributors don’t want to be pushed to the side. Which they kind of are with TV content sites like Hulu.com. Hulu is a joint venture between NBC and FOX.
I say that the Cable distributors are “kind of” pushed aside only because the Cable distributors in many cases are also the Internet providers. However, the Internet has reached pretty much complete saturation in the US. So the Internet providers / cable companies can’t make any more money UNLESS they start to charge for premium content over the Internet. That’s why they are eager to work with the content creators to work out a deal where they can charge for content.
In the Hulu model consumers pay their monthly internet fee and get access to all of the Hulu TV content. Hulu makes money on the ads. The Internet providers make the same amount of money regardless of what the consumer views on the internet. The content creators are now in a position to either push for free content over the internet and they can make their money on ads OR work with the distributors to charge consumers for premium content over the net. Which way will it go?
My bet is that you’ll see a bit of both — just like TV is now. You’ll get a ton of content over the Internet for free. And you’ll have to pay a premium for premium content — just like HBO.
What does this mean to us internet marketers?
