Posts Tagged Television

New Year, New Hope for IPTV

So as a new year (and a new President) are upon us, I find myself wondering about the future of television. I hypothesized last year that in the future, we’d free ourselves from arbitrary schedules and the concept of a “broadcast network” entirely. Why should a network (or “channel” for that matter) have to release only one show at a time? Why not let all the new shows for a day come out at a certain time?

Certainly, a portion of this country receives broadcasts over the air, and probably will for quite some time. This will limit us to the time-locked, one-show-per-channel But an ever-growing number of us have a feed from our local cable or phone company for internet. What that means is that the same person providing me the access to some arbitrary multicast feed of channels that I pay an exorbitant amount for is also letting me stream from the myriad of services online – Netflix, Hulu, Youtube, and a myriad of network-specific sites, like NBC.com and ABC.com. I feed all the “channels” into my Tivo DVR and then watch them when I want. The whole thing seems silly though, and there has to be a better way for everyone involved.

And here it is:

Currently, networks like NBC see themselves as content providers, effectively they are both publishers and distribution houses for a very narrow stream of content. They have a limit on the content they can carry, both from a financial resource standpoint, but more importantly they only own a few channels, which can only put a single show at a time on. This is a choking point which doesn’t NEED to exist in a modern system, but is vestigial backwash from when radio waves carried a signal out from one tower to your house.

I envision a day when networks like NBC act almost exclusively as content aggregation. They pay for shows to be made, insert their commercials and so forth directly into them, and then send dozens (or hundreds) of shows directly to my local cable / internet provider each week. Then, my provider can set up a “portal” – possibly even give me a little Set Top Box to stream it directly from their servers. Even manage subscriptions through the box – letting me automatically download a show (effectively subscribe), letting me pick my shows and pay for groups, seasons, genres, or just single episodes. Or an “all I can eat” pass to watch whatever I want when I want it.

Everything is On Demand. The amount of traffic I pull down from the Internet is dwarfed by the amount I pull down over a high-speed, local connection to a server sitting halfway across town. Why stream from NBC’s servers over an expensive, “real” internet connection when I can pull down from my local ISP?

What this will do is basically abolish the concept of a TV “network”. They’ll be feed services, and can focus on what they’re actually supposed to do – provide content. They’re publishers, not distributors, and they should stick to that. The value of a themed “schedule” pales in comparison to the value of watching what I want, when I want it, with not limit to storage, capacity, or the number of channels I can record at once. And I shouldn’t need a $1000+ piece of hardware or something I pay an extra $15/mo for. I should just do it.

Microsoft is working on something called “Media Room” – it is effectively a DVR for an entire cable provider. Record everything, turn your entire network into an “on demand”. It is incredibly promising, but the current content providers are crying “Foul!” at the concept of delivering content to users whenever they want it, rather than based on an arbitrary schedule. They’re fighting with lawyers and lawmakers, and it’ll be a while before technology and consumer benefit win out. The old, lumbering media giants don’t want to give up a piece of their estate, even though they’d be better off in the long run. Also, they don’t want to make it really easy for new competitors to enter the business of media distribution. There isn’t a way to easily monetize Youtube (yet), but if I could put content on my local ISP’s network and let people pay a quarter per show? I wouldn’t need NBC at all, except to make the expensive shows. The value of their distribution network would no longer be a hurdle, just the amount they can front for famous actors / sets / equipment.

Leveling the playing filed scares them, so they’ll fight it as long as they can.

Tags: ,

NBC Offers Online-only Television Show

NBC is dipping its toes in the Direct Content business for the first time in my memory. They’re offering Coastal Dreams, which their site describes as “[the story of] two young women living, working and playing in the scenic seaside town of Pacific Shores,” exclusively online. Imagine a Baywatch Soap Opera.

What’s most fascinating to me is the breadth of extra content available. They’re not just showing episodes online, there’s a tremendous amount of additional content. The inbox of one of the characters on the show, interviews with the cast.

But what does NBC get out of it? Well, they get the exclusive advertising rights. No longer are mid-show commercials shared (or overwritten) by local broadcasters. They show me ads, and install four cookies on my computer to track (presumably) which shows I visit, which ads I click on, which shows I learn more about. It looks like they’re getting ready to build a passive profile of “me” on their site, with page ads and commercials all targeted at me, rather than hoping I fit the largest demographic for whatever time period the show is on. As it happens, I saw commercials for tampons. Go figure.

The other big advantage? The adoption cost is incredibly low. Suppose a friend told me that Coastal Dreams was her favorite new show. The season started in October, so the chances that I’d be seeing all the old episodes in the right order are virtually zero. I can’t exactly join in midway through, or else I wouldn’t know if April overreacted by firing Christian. Well, now NBC doesn’t have to waste airtime with reruns to attract new viewers. If I want to watch the story from the beginning to catch up, I can simply log on and view all the past episodes. No waiting for the Season 1 DVD, no reading episode synopsis on Wikipedia or Torrenting the first half of the season. It’s all right there, and that way NBC still gets their advertising buck for me watching.

I think this is a very interesting experiment. The cost of launching a show this way is dramatically lower, the fans feel more “invested” because they get more than a passive interaction with the storyline, and best of all, all the Ad revenue is pointing right back at NBC. No middlemen, no cable company taking their cut, nothing.

I haven’t had the time or desire to actually watch an episode of Coastal Dreams yet, but I’d bet you can’t fast forward through the commercials, either. Take that, Tivo!

I’ll be watching this one closely. Not the show, the experiment. The show seems aimed at pre-teen girls.

Tags: , , ,