Technology Corner

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

In the past decade TV broadcasting companies have seen their magnificent empire threatened by the online world. So, what is next for them? 

With the widespread of the internet and more recently the increased availability of broadband connections, consumers are (thankfully) shifting their media intake habits from “the box” to the computer.

TV Viewing Habits

Although this trend was, at first, more noticed in the US, globally it’s catching up. A recent global survey by IBM shows exactly how this shift is happening:

• 19% said they spend 6+ hours a day online vs. only 9% who watch 6+ hours of TV.
• 60% said they spend 1-4 hours a day online vs. 66% who watch 1-4 hours of TV

And, as I mentioned, it isn’t only on the US that TV companies are getting the kick. When asked about general TV consumption, the numbers are clear for New Zealand too:

Decreased. And if not on TV, on what are people spending their time on then?

General Internet Use is the clear winner.

Also in the old continent media consumption is shifting towards the internet. While just three years ago, TV was the first choice for the evenings, the online world is quickly changing it as this survey by OPA-Europe clearly shows it:

• Media consumption habits have definitively changed - Internet now dominates daytime AND primetime media consumption in Europe
• 73% of European respondents go online every day (78% in France and 80% in the UK)
• In 2004, 84% of European respondents were online during the morning, and 44% during primetime. In 2007, the morning audience has remained stable, and the primetime audience has grown to 67%
• In 2004, 48% of European respondents preferred the Internet for finding out about new products. In 2007, the European average is 67%, and it’s even higher in Spain and France

Why isn’t online media gaining even more, even faster?

Comfort. It is all due to how much more comfortable it is to sit down on the sofa and just look at a box without having to do anything else. While browsing the internet, even if looking for your favorite online shows or YouTube videos, is something active, watching TV and having everything fed to your eyes is very very passive.

When accessing online media becomes as easy as clicking the remote, TV is gone for good.

What about the future for TV broadcasters?

Dark… unless creative views of their business models are taken. Many of the major names in TV are investing time and resources on online media. They know there is no other way. But much more is needed for them to attain a comfort zone where revenue doesn’t stop. My suggestions?

• Invest in servers for real-time online broadcasting;
• Have all your content on-demand;
• Change your advertising model to accommodate the online market;
• Distribute your content FOR FREE, supported by advertisers, through big media distributors;
• Go for high gains through high numbers of viewers (it is a global market after all) instead of high percentile revenues per viewer;
• Follow the podcasters: make it portable;
• And you might have a future after all.

Want facts? Still following the OPA-Europe Survey:

• Internet advertising considered the most innovative, informative and relevant

• Europeans perceive online ads as more believable when they appear on a site they trust

• 82% of European At Work Users visit news and information sites, making them good places to advertise

Tend to your viewers and advertisers will, even if unwillingly, follow. And with them comes revenue.

And what do you think the future of TV is? Would you abandon your “box” if all the content was made available online? Share your thoughts with us…

Related on this blog:

• BBC's iPlayer tests UK ISP's business model